7. Risk and Sustainability

Risk Management — Quiz

Test your understanding of risk management with 5 practice questions.

Practice Questions

Question 1

A supplier disruption risk has a 20% chance of occurrence and an estimated financial impact of \$500 000. What is the expected value of risk (EVR)?

Question 2

Which quantitative risk assessment technique uses thousands of randomized simulations to model potential supply chain disruptions and estimate their probability distributions?

Question 3

What is the primary purpose of a risk register in supply chain risk management?

Question 4

In supply chain risk management, what is the main role of scenario analysis?

Question 5

Which analytical approach leverages historical data and machine learning models to forecast and quantify potential future supply chain disruptions?