Certified Supply Chain Professional (CSCP) Practice Exam

What constitutes internal threats according to risk considerations?

1. External natural disasters

2. Employee theft and accidents

3. Market competition

4. Cybersecurity breaches

The correct answer is: Employee theft and accidents

Internal threats in the context of risk considerations refer to risks that originate from within an organization rather than from external sources. Employee theft and accidents represent typical internal threats as they emanate from individuals who are part of the organization. Employee theft can have a significant financial impact, while accidents can result in injuries or damage to property, affecting operational efficiency and morale. Understanding the nature of internal threats is crucial for organizations, as these risks often stem from the very people who are expected to adhere to and promote company policies and regulations. Effective risk management strategies should focus on identifying, mitigating, and monitoring these internal issues to create a safer and more reliable organizational environment. In contrast, external natural disasters, market competition, and cybersecurity breaches, while they may pose significant challenges, are not classified as internal threats, as they arise from outside the organization or from broader industry conditions.