Scenario: Supply Chain Disruption
A global manufacturing company relies on a single supplier for a critical component. Political
instability in the supplier’s country has increased the likelihood of supply chain disruption.
The company’s risk appetite is low for operational interruptions.
What is the most appropriate risk treatment?

Question

Scenario: Supply Chain Disruption

A global manufacturing company relies on a single supplier for a critical component. Political

instability in the supplier’s country has increased the likelihood of supply chain disruption.

The company’s risk appetite is low for operational interruptions.

What is the most appropriate risk treatment?

Answer

D) Transfer the risk by outsourcing logistics

Answer

C) Increase inventory levels without changing suppliers

Answer

A) Accept the risk and monitor the situation

Answer

B) Diversify suppliers to reduce dependency

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