Certified Supply Chain Professional (CSCP) Practice Exam

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Study for the Certified Supply Chain Professional (CSCP) Practice Exam. Prepare with multiple choice questions, each accompanied by hints and explanations. Get ready to ace your exam!

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What is the first step in managing risks in the supply chain?

Classify the risks
Identify risks
Execute risk response plan
Develop risk response plan

The correct answer is: Identify risks

The first step in managing risks in the supply chain is to identify risks. Effective risk management begins with a comprehensive understanding of the potential risks that can affect the supply chain. This involves recognizing the various types of risks—such as operational, financial, strategic, and reputational—that may arise from different sources including suppliers, logistics, market fluctuations, or regulatory changes. By identifying risks, organizations can assess their impact and likelihood, which informs subsequent steps in the risk management process, such as classifying the risks and developing response strategies. It's essential to have a clear picture of what risks exist before moving on to analyze, respond to, or develop plans for managing those risks. This foundational step ensures that all potential vulnerabilities have been acknowledged and sets the stage for effective risk mitigation strategies.