Deck 10: Transportation Risk Management

Question 1

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

Answer 1

Delivery delay

Question 2

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

Answer 2

Protect U.S. ports and waterways from terrorist attack

Question 3

What is the final step in risk management?

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

Answer 3

Reviewing and monitoring

Question 4

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 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 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 7

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

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

Question 8

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

Question 9

What two parameters are involved in risk assessment?

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

Question 10

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 11

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 12

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 13

A deliberate product contamination risk is called?

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

Question 14

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 15

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

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

Question 16

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 17

What is the simplest way to eliminate risk?

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

Question 18

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 19

Supply chain disruptions can result in:

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

Question 20

In 2016, the cost of ransomware attacks was approaching ______.

A) $2 billion
B) $640 million
C) $1 billion
D) $64 million

Question 21

Business continuity planning is defined as:

Question 22

Risk review and monitoring is a:

A) One-time process
B) Continuous process
C) Measure of efficiency
D) Link to disruptive activity

Question 23

The objectives of the risk management process are:

Question 24

Describe the key provisions of the SAFE Port Act.

Question 25

Risk management planning:

A) Is not static
B) Is not a one-time process
C) Cannot be assumed to be implemented on its own
D) All of these are correct.

Question 26

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

Question 27

How can countries promote a more secure transportation system?

Question 28

Risk retention can be referred to as:

A) The acceptable amount of risk an entity is willing to carry
B) How much risk there is rehiring OTC drivers
C) Fuel hedging
D) None of these is correct.

Question 29

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

Question 30

Risk transfer strategy provides a means to:

A) Secure containers in a port
B) Insure drivers against criminal activity
C) Place liability on a third party
D) Thwart pirate attacks

Question 31

Describe the six common risk categories related to freight transportation.

Question 32

What is the objective of risk assessment?

Question 33

Describe the four step risk management process.

Question 34

Describe three supply chain interruptions currently facing the transportation industry.

Question 35

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

Question 36

Risk management is defined as:

Question 37

Insurance is a common form of:

A) Incoterms
B) Risk transfer
C) Port management
D) Maritime trade

Question 38

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

Question 39

What is the purpose of transportation insurance.

Question 40

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