APICS Certified Supply Chain Professional (CSCP) — Question 244

Which of the following actions is most effective in protecting against unknown risks?

Answer options

• A. Develop and implement a detailed contingency plan.
• B. Aggressively invest in researching possible risks.
• C. No actions are feasible as the risks are completely unknown.
• D. Build the appropriate level of redundancy in the supply chain.

Correct answer: D

Explanation

Building redundancy in the supply chain ensures that if one part fails, another can take over, thus mitigating unknown risks. Developing a contingency plan and researching risks are valuable, but they don't directly address the uncertainty of unknown risks. Claiming that no actions are feasible ignores proactive measures that can be taken.