The most proactive risk management activity involves
A) Diversifying the supply base
B) Identifying backup suppliers
C) Developing a risk management plan
D) Utilizing a supply chain IT system

Question

Quizplus · Accepted Answer

Developing a risk management plan involves identifying potential risks, assessing their likelihood and impact, and taking proactive steps to mitigate them. This is the most comprehensive and effective way to manage risks in the supply chain. While diversifying the supply base and identifying backup suppliers are important strategies, they are reactive measures that may not address all risks. Utilizing a supply chain IT system can also help with risk management, but it is only one component of a comprehensive plan.

The Most Proactive Risk Management Activity Involves