Deck 9: Transportation Risk Management

Question 1

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 1

B

Question 2

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 2

C

Question 3

A deliberate product contamination risk is called?

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

Answer 3

A

Question 4

As of 2007 how many companies were members of C-TPAT?

A) Less than 2000
B) 3,011
C) More than 10,000
D) Almost 7,000

Question 5

Which of the following is not an objective of the risk management process?

A) Define the key objectives
B) Identify risk issues
C) Compare risks
D) Treat all risks equally

Question 6

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 7

The submission of advanced electronic data on all shipments is a requirement of?

A) Container Security Initiative
B) Trade Act of 2002
C) Maritime Transportation Security Act of 2002
D) Customs-Trade Partnership Act

Question 8

What is the final step in risk management?

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

Question 9

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 10

According to the 2008 Aberdeen Group study what percent of firms suffered supply chain risk related financial loss?

A) 12%
B) 58%
C) 99%
D) 75%

Question 11

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 12

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

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

Question 13

Which of the following is a type of product loss?

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

Question 14

What is the simplest way to eliminate risk?

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

Question 15

Supply chain disruption can result in:

A) Stock price increase
B) Lower operating performance
C) Inventory decrease
D) Higher return on assets

Question 16

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

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

Question 17

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 18

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 19

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 failures

Question 20

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 21

What are the key outputs of a risk assessment process? What should be done with these outputs?

Question 22

Describe the four step risk management process.

Question 23

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

Question 24

The objectives of the risk management process are:

Question 25

Describe the core elements of the Container Security Initiative (CSI).

Question 26

Risk management is defined as:

Question 27

___________is a common method of risk transfer that nearly everyone utilizes at one time or another.

Question 28

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

Question 29

What are the categories of supply chain risk and how should the organization deal with each?

Question 30

The container security initiative (CSI)was created to:

Question 31

Discuss the tradeoff between security in the wake of September 11th and the economic trade growth dependence on global trade.

Question 32

What is the objective of risk assessment?

Question 33

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

Question 34

Describe the six common risk categories related to freight transportation.

Question 35

Business continuity planning is defined as: