DRI Supply Chain & Third-Party Risk Management Flashcards
6 cards from real DRI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 DRI Supply Chain & Third-Party Risk Management flashcards as text
What is a 'Supplier Business Impact Analysis (BIA)' used for in supply chain continuity?
Answer: To identify which supplier relationships are most critical and the impact of their failure
A Supplier BIA identifies the criticality of each supplier relationship and quantifies the operational and financial impact if that supplier cannot deliver, guiding prioritization of mitigation efforts.
Which of the following is a key component of a supply chain BC strategy for a US-based organization?
Answer: Maintaining safety stock of critical materials to bridge supply gaps during disruptions
Maintaining safety stock of critical materials provides a buffer that allows operations to continue during supply chain disruptions while alternate sources are activated.
What is the significance of a vendor's SOC 2 report in third-party BC risk management?
Answer: It provides independent assurance that the vendor's controls, including availability and continuity controls, are effective
A SOC 2 report provides independent auditor attestation of a vendor's operational controls including availability and continuity-related controls, giving assurance of their resilience posture.
In supply chain risk management, what does 'geographic diversification' mean?
Answer: Sourcing from suppliers in different locations to reduce regional disaster exposure
Geographic diversification in supply chain management means sourcing critical materials or services from suppliers in different locations so a single regional disaster cannot disrupt all sources simultaneously.
Which action should be taken when a vendor's BC plan does not meet your organization's RTOs?
Answer: Require the vendor to improve their plan or identify an alternate vendor who can meet requirements
If a vendor's BC plan cannot support your RTOs, you must either require improvements or identify alternate vendors whose capabilities align with your recovery time requirements.
What is the purpose of 'supply chain mapping' in business continuity?
Answer: To visually document all supplier relationships and dependencies to identify vulnerabilities
Supply chain mapping creates a comprehensive visualization of all supplier relationships, tiers, and interdependencies, revealing hidden vulnerabilities and single points of failure that could disrupt operations.