Certified Supply Chain Professional (CSCP) Practice Exam

What is outlined in a risk response plan?

1. A general strategy for business development

2. A detailed definition of known risks and proposed responses

3. A list of potential market risks without details

4. A historical review of past project risks

The correct answer is: A detailed definition of known risks and proposed responses

A risk response plan is a critical component of risk management in supply chain operations. It specifically focuses on identifying known risks that have the potential to disrupt processes or projects and outlines proposed responses to mitigate these risks effectively. This approach allows organizations to prepare for uncertainties proactively and establish clear strategies to address specific issues that may arise. By detailing known risks and their corresponding response plans, the organization can prioritize risks based on their potential impact and likelihood of occurrence. This thorough approach ensures that stakeholders are aware of specific risks and the actions required to minimize their adverse effects. In contrast, a general strategy for business development, a list of potential market risks without details, or a historical review of past project risks does not provide the necessary depth of information or actionable plans needed in a risk response context, making them less suitable as outlines for a risk response plan.