Certified Supply Chain Professional (CSCP) Practice Exam

What is a potential consequence of strategic supply chain risks?

1. Improved market share

2. Hurt the success of the long-term supply chain strategy

3. Increased customer satisfaction

4. Reduction in operational costs

The correct answer is: Hurt the success of the long-term supply chain strategy

A potential consequence of strategic supply chain risks is that they can hurt the success of the long-term supply chain strategy. Strategic risks often involve broader, systemic issues that can affect an entire supply chain, including changes in market conditions, regulatory changes, and disruptions in supplier relationships. When these risks manifest, they can derail the carefully crafted plans and objectives that are necessary for the long-term success and sustainability of a supply chain strategy. This consequence emphasizes the importance of robust risk management practices within supply chain operations, as the failure to address strategic risks can lead to unfavorable outcomes such as loss of competitive advantage, misalignment with market needs, or inability to meet customer expectations over time. In contrast, the other options typically represent positive outcomes rather than consequences of risks. Improved market share and increased customer satisfaction are objectives that companies strive for, but they are not direct results of strategic risks. Similarly, a reduction in operational costs is usually a goal of effective supply chain management rather than a consequence of risk. Recognizing the potential negative impact of strategic risks is crucial for supply chain professionals to mitigate adverse effects and steer their organizations toward long-term success.