Some operational risks in a supply chain are beyond the control of the purchaser or supplier, and some are within their control.? a. Trueb. False

Question

Business

Ellie Khan

20 May, 16:14

Some operational risks in a supply chain are beyond the control of the purchaser or supplier, and some are within their control.? a. Trueb. False

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Answers (1)

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Bryanna Merritt · Answer 1

Letter a. is correct. TRUE.

Explanation:

This statement is correct because a supply chain is part of the macroenvironment, and operational risk can be defined as different results than expected due to internal or external events.

The current economic scenario appears to be unstable, as political, economic, technological, social and other changes are occurring all the time, which can represent significant external risks in a supply chain, where there is no control by the buyer or supplier.

Some examples of uncontrollable operational risks are:

Fraud and misconduct; Systemic failure; Safety; Human error.

For this reason, the importance of risk management, which includes planning, identification, qualitative and quantitative analysis, response planning and monitoring and control processes, which together will provide subsidies for less vulnerability in the supply chain and less risk.