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Question 434 - CSCP discussion

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A shipping company investing to reduce damages due to weather conditions is an example of:

A.
risk tolerance.
Answers
A.
risk tolerance.
B.
risk exposure.
Answers
B.
risk exposure.
C.
risk mitigation.
Answers
C.
risk mitigation.
D.
risk resilience.
Answers
D.
risk resilience.
Suggested answer: C

Explanation:

Investing to reduce damages due to weather conditions is an example of risk mitigation. Risk mitigation involves taking proactive steps to reduce the adverse effects of potential risks. In this case, the shipping company is investing in measures such as better packaging, improved weather forecasting systems, or reinforced shipping routes to protect against weather-related damages. These actions help to minimize the impact of weather risks on their operations, ensuring more reliable and safe delivery of goods.

Reference: Waters, D. (2007). Supply Chain Risk Management: Vulnerability and Resilience in Logistics.

asked 16/09/2024
Markus Hechtl
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