L5M2 Managing Supply Chain Risk Question and Answers

Explanation

A Disaster Recovery Plan is to get critical systems operational following an emergency. This is implemented hours after the event. Option 2 describes Incident Response and Option 3 describes a Business Continuity Plan. Option 4 is made up. These definitions and the timeline of when they're activated is on p.108 of the study guide

Explanation

The correct answers are as follows:

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The correct answers are as follows:

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Explanation

This is an example of bribery. The trip to Barbados is the bribe. For more information on these types of fraud see p.19

Explanation

High risk/ high reward, and low risk/ low reward are the options that should be CONSIDERED. This is according to the risk/ reward matrix on p. 6. Items that are low risk/ high reward should be PROGRESSED and items which are high risk / low reward should be AVOIDED.

Explanation

Act is the final stage. See p.25 for a diagram of the cycle.

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The correct answers are as follows:

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Standardised payment terms would help with cashflow. For example every client must pay within 30 days.

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The correct answers are as follows:

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Service Credits are commonly used in IT contracts. This is where the customer is compensated financially should the system 'go down' for a period.

Explanation

1 and 5 are correct- it is the most common type of distribution and it looks like a bell curve when it's drawn as a graph. There's one on p.127 to look at. The other three statements are incorrect- it's a bell shape rather than a curve, it requires a large number of data points and most of the data points correlate around the middle.

Explanation

This is used to engage stakeholders in the development of risk assessments. P. 137-138

Explanation

This is a 'swap' and is explained on p.94. This is a type of 'hedging' but there is no such thing as 'a hedge'. For a more in-depth look at Swaps see: https://www.mercatusenergy.com/blog/bid/77634/an-introduction-to-airline-fuel-hedging-strategies-swaps

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The correct answers are as follows:

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Explanation

Power and Legitimacy are part of the Stakeholder Salience Model - the third characteristic is Urgency. See p. 138

Explanation

access is not a pre-condition. The other three are. The fourth pre-condition not mentioned is lack of controls. This is from p.20 of the study guide