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Managing Supply Chain Risk Questions 31–35 (page: 8)

Updated On: 9-Feb-2026

In an emergency situation, put the following phases into chronological order as to when they would be activated 1) disaster recover plan 2) incident response 3) business continuity plan

  1. 1, 2, 3
  2. 1, 3, 2
  3. 2, 1, 3
  4. 3, 1, 2

Answer(s): C

Explanation:

The correct order is 2, 1, 3 - this is from p.108 of the study guide: 'The Components of a Business Continuity and Disaster Recovery Plan'.



Which of the following is not an internal risk for a business who imports raw materials from abroad?

  1. technology malfunction
  2. procurement fraud
  3. loss of customer data
  4. changes to import levies

Answer(s): D

Explanation:

changes to import levies is an external risk. Not internal. See p.118-119 for more information on internal risks - this is a popular exam topic. Internal risks are stuff that happens inside a company, external risks are risks from the external environment (whether this is political, economical, weather etc)



Fraud committed by an employee within a business is what type of risk?

  1. internal risk
  2. external risk
  3. procurement risk
  4. economic risk

Answer(s): A

Explanation:

This is an internal risk. A procurement risk would be issues with a supplier or contract, and economic risk would be exchange rate fluctuations etc. See p.118 for more information on internal risks- it's a known exam topic



Which of the following stages would come first within a risk assessment?

  1. evaluate risk
  2. treat risk
  3. monitor risk
  4. analyse risk

Answer(s): D

Explanation:

analyse is the correct answer. The full process is: establish context- identify- analyse - evaluate - treat
- monitor and review. This is from p.122



Which of the following statements about normal distribution are correct? Select TWO

  1. it is the most common type of distribution pattern
  2. there's a small number of data points required to produce
  3. it is represented pictorially as a curve
  4. most of the data points correlate around the beginning
  5. it is shaped like a bell curve

Answer(s): A,E

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.



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