1. What is the primary objective of risk identification in supply chain management?
A) To reduce production costs
B) To recognize potential threats that could disrupt operations
C) To increase sales revenue
D) To improve customer service
Answer: B) To recognize potential threats that could disrupt operations
2. Which of the following is a common method used for risk assessment in supply chains?
A) SWOT Analysis
B) PEST Analysis
C) Failure Mode and Effects Analysis (FMEA)
D) Marketing Mix Analysis
Answer: C) Failure Mode and Effects Analysis (FMEA)
3. What does the term “supply chain resilience” refer to?
A) The speed at which a supply chain can recover from disruptions
B) The number of suppliers a company has
C) The cost-effectiveness of supply chain operations
D) The diversity of products offered
Answer: A) The speed at which a supply chain can recover from disruptions
4. Which factor is crucial in the risk identification process within supply chain management?
A) Identifying key performance indicators (KPIs)
B) Mapping the entire supply chain network
C) Increasing production capacity
D) Expanding the customer base
Answer: B) Mapping the entire supply chain network
5. What is the main benefit of conducting a risk assessment in supply chains?
A) Increased product variety
B) Improved preparedness and mitigation strategies
C) Higher profit margins
D) Faster product delivery times
Answer: B) Improved preparedness and mitigation strategies
6. Which type of risk assessment focuses on the likelihood and impact of different risks?
A) Qualitative risk assessment
B) Quantitative risk assessment
C) Scenario analysis
D) Trend analysis
Answer: B) Quantitative risk assessment
7. What role does risk mitigation play in supply chain management?
A) It eliminates all risks from the supply chain.
B) It reduces the probability and impact of potential risks.
C) It increases the number of suppliers.
D) It focuses on expanding market reach.
Answer: B) It reduces the probability and impact of potential risks.
8. Which of the following risks is considered a financial risk in supply chain management?
A) Natural disasters
B) Supplier bankruptcy
C) Transportation delays
D) Regulatory changes
Answer: B) Supplier bankruptcy
9. How does diversification of suppliers help in risk management?
A) By increasing supply chain complexity
B) By spreading risk across multiple sources
C) By reducing the need for inventory
D) By lowering production costs
Answer: B) By spreading risk across multiple sources