Certified Supply Chain Professional (CSCP) Practice Exam

Which risk response type involves actions taken before a risk event occurs?

1. Corrective action

2. Preventative action

3. Reactive action

4. Mitigative action

The correct answer is: Preventative action

The correct choice focuses on actions that are implemented to prevent the occurrence of a risk event before it happens. Preventative action is integral to risk management as it aims to identify potential risks and implement measures that reduce the likelihood of those risks manifesting. By investing in preventative actions, organizations can effectively avoid potential disruptions and enhance the overall resilience of their operations. This could include measures such as process improvements, employee training, and contingency planning, all designed to fortify an organization against foreseeable risks. In contrast, other response types, such as corrective actions and reactive actions, usually come into play after a risk event has occurred, focusing on mitigation and recovery instead of prevention. Therefore, preventative actions clearly stand out as proactive measures that target risk before it materializes.