Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is a component of developing a risk response plan?

1. Getting approval and funding

2. Entering risks into the risk register

3. Monitoring ongoing risks

4. Assigning project tasks to team members

The correct answer is: Getting approval and funding

Developing a risk response plan involves several critical components, one of which is getting approval and funding. This step is essential because a comprehensive risk response plan typically requires resources—both financial and human—to implement the strategies identified for mitigating or managing risks. Securing approval ensures that stakeholders are on board with the planned actions and that the necessary budget is allocated to effectively address identified risks. This component underlines the importance of organizational endorsement and resources in ensuring that the risk management strategies can be successfully executed. Without this approval and funding, the plan may be rendered ineffective as there would be no mechanism in place to carry it out, allowing potential risks to remain unaddressed. Other options present essential tasks and concepts related to risk management but do not directly pertain to the specific component of developing the risk response plan. Entering risks into the risk register pertains to identifying and documenting risks rather than crafting the response itself. Monitoring ongoing risks focuses more on the implementation and observation phases post-response planning, while assigning project tasks relates to project management rather than risk management specifically.