Certified Supply Chain Professional (CSCP) Practice Exam

Which step follows identifying the risks in risk management?

1. Developing a risk response plan

2. Executing the risk response plan

3. Classifying the risks

4. Monitoring the risk management process

The correct answer is: Classifying the risks

After identifying the risks in risk management, the logical next step is to develop a risk response plan. This plan outlines how to address the identified risks, including strategies for mitigating, transferring, accepting, or avoiding them. While classifying the risks can be a part of the initial risk assessment process, it comes before the identification of risks and does not directly follow it. Following identification, it is crucial to form a structured approach for responding to those risks, which necessitates the development of a response plan. Once a response plan is in place, the next steps involve executing that plan and subsequently monitoring the risk management process to ensure effectiveness and make necessary adjustments. Thus, the development of a risk response plan is a key step in the risk management lifecycle.