Deck 9: Transportation Risk Management

Question 1

A risk mitigation strategy should produce an action plan that identifies that includes all of the following except:

A) Roles and responsibilities for developing the strategy
B) Resources required to carry out the planned actions
C) Conditions present in order for risk level to be acceptable
D) A way to get rid of the risk completely

Answer 1

D

Question 2

A deliberate product contamination risk is called?

A) Tampering
B) Climate control failure
C) Exposure to contaminants
D) Hedging

Answer 2

A

Question 3

What two parameters are involved in risk assessment?

A) Cost and impact
B) Probability and impact
C) Frequency and probability
D) Duration and probability

Answer 3

B

Question 4

The process which provides a baseline evaluation of risk in a rapid and cost-effective manner is known as:

A) Quantitative risk analysis
B) Event management software
C) Qualitative risk analysis
D) Risk avoidance

Question 5

Which of the following is a type of product loss?

A) Pilferage
B) Damage
C) Climate control failure
D) Labor disruption

Question 6

Which risk reduction strategy provides additional resources to reduce risks related to capacity shortages or performance problems?

A) Postponement
B) Buffering
C) Hedging
D) Transfer

Question 7

A truck breakdown can be characterized as what type of risk?

A) Equipment accident
B) Improper equipment loading
C) Delivery delay
D) Supply chain disruption

Question 8

Which of the following is not one of the four steps in the risk management process?

A) Identify the risk
B) Analyze the risk
C) Manage the risk
D) Cost the risk mitigation

Question 9

Which initiative encourages businesses to ensure the integrity of their security practices and verify the security guidelines of their business partners within the supply chain?

A) Container Security Initiative
B) Customs-Trade Partnership Against Terrorism
C) Maritime Transportation Security Act of 2002
D) Free and Secure Trade

Question 10

The Maritime Transportation Security Act of 2002 is intended to:

A) Protect U.S. ports and waterways from terrorist attack
B) Reduce the threat that a maritime container will be used to deliver a weapon
C) Streamline cargo manifests
D) Establish ocean based power generation

Question 11

The comprehensive port security law designed to keep nuclear,chemical,and biological weapons out of freight containers traveling to U.S.ports is called:

A) Container Security Initiative
B) Aviation and Transportation Security Act
C) Maritime Transportation Security Act of 2002
D) Security and Accountability for Every Port Act (SAFE)

Question 12

Which of the following is not a transportation risk reduction strategy?

A) Use of generic packaging
B) Use of event management software
C) Monitor carrier finances
D) Use of least cost service provider

Question 13

What is the simplest way to eliminate risk?

A) Risk reduction
B) Risk mitigation
C) Risk avoidance
D) Risk identification

Question 14

The Free and Secure Trade (FAST)Program is between the U.S. ,Canada,and:

A) Mexico
B) Cuba
C) Germany
D) England

Question 15

In 2013,there were ____ reported pirate attacks on ocean going vessels worldwide?

A) 2,064
B) 640
C) 264
D) 64

Question 16

Supply chain disruptions can result in:

A) Increased stock price
B) Lower operating performance
C) Decreased stock price
D) Higher return on assets

Question 17

What is the term for an external supplier that perform all or part of an organizations logistics services?

A) Freight forwarder
B) Consultant
C) Third party logistics service provider (3PL)
D) Just in time provider

Question 18

What is the final step in risk management?

A) Reviewing and monitoring
B) Reduction
C) Identification
D) Analysis

Question 19

Not putting all your "eggs in one basket" is what type of strategy?

A) Postponement
B) Buffering
C) Hedging
D) Transfer

Question 20

Which of the following is not a common point of exposure for a potential security breach?

A) Lax security processes
B) Unprotected transfer facilities
C) Data encryption
D) Shipment control breakdown

Question 21

What are the core elements of the container security initiative (CSI)?

Question 22

How does a company evaluate the seriousness of a transportation risk?

Question 23

Describe Customs-Trade Partnership Against Terrorism (C-TPAT).

Question 24

Business continuity planning is defined as:

Question 25

What is the objective of risk assessment?

Question 26

How can countries promote a more secure transportation system?

Question 27

Define disruption and risk in general terms and in terms of transportation

Question 28

Describe the six common risk categories related to freight transportation.

Question 29

Describe the four step risk management process.

Question 30

Describe three supply chain interruptions facing the transportation industry in the 2007 to 2009 timeframe.

Question 31

How can companies proactively deal with high-probability/high-impact transportation risks?

Question 32

Describe the key provisions of the SAFE Port Act.

Question 33

The objectives of the risk management process are:

Question 34

What is the purpose of transportation insurance.

Question 35

Risk management is defined as: