Certified Supply Chain Professional (CSCP) Practice Exam

Malfeasance risks are mainly concerned with which issue?

1. Supply chain alignment

2. Supplier performance indicators

3. Theft, fraud, and corruption

4. Logistical delays

The correct answer is: Theft, fraud, and corruption

Malfeasance risks specifically pertain to unethical actions or intentional wrongdoings, particularly those that involve theft, fraud, and corruption. In the context of supply chain management, these risks can have significant implications for an organization, affecting not only financial health but also reputation and stakeholder trust. Understanding malfeasance risks is crucial for implementing effective controls and governance practices within the supply chain. Addressing these concerns helps organizations safeguard against potential losses and maintains integrity in their operational processes. Other options, while relevant in their contexts, do not encompass the essence of malfeasance. For instance, supply chain alignment and logistical delays focus more on operational efficiency and coordination rather than the ethical considerations of behavior. Supplier performance indicators, although they may track how well a supplier meets contractual obligations, do not inherently address the ethical misconduct that defines malfeasance risks. Therefore, focusing on theft, fraud, and corruption directly relates to the essence of malfeasance in the supply chain.