Certified Supply Chain Professional (CSCP) Practice Exam

What type of action occurs during or after a risk event?

1. Corrective action

2. Preventative action

3. Initial action

4. Proactive action

The correct answer is: Corrective action

The correct response relates to corrective action, which is the response taken once a risk event has occurred or is currently happening. Corrective actions aim to address the impact of the risk event, mitigate its effects, and bring operations back to their intended state. This involves implementing strategies or measures to fix the issue, manage the consequences, or recover from losses sustained due to the risk event. This approach focuses on real-time response, identifying what went wrong, and making the necessary adjustments to prevent further issues stemming from that event. Therefore, corrective actions are critical in risk management processes, as they help stabilize situations that deviate from the plan. In contrast, preventative, initial, and proactive actions are typically concerned with preventing risk events or preparing for them before they occur. Preventative actions are implemented to avert potential risks, while proactive actions are forward-looking strategies designed to reduce the likelihood of risk events altogether. Initial actions suggest steps taken at the onset rather than during or after the occurrence of a risk event. Hence, the focus on corrective actions effectively highlights the necessary response during or after a risk event.