Certified Supply Chain Professional (CSCP) Practice Exam

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Prepare for the Certified Supply Chain Professional Exam with a comprehensive quiz featuring multiple choice questions and essential study material. Gain the knowledge and confidence needed to excel in your certification journey!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following is an example of hazard risks?

Litigation
Supplier fraud
Natural disasters causing damage
Market volatility

The correct answer is: Natural disasters causing damage

Hazard risks are associated with events that can result in a loss or damage that can often be insured against. These risks typically involve unexpected incidents that can lead to physical harm or property damage. Natural disasters, such as hurricanes, earthquakes, or floods, are prime examples of hazard risks because they pose significant threats to property, infrastructure, and can disrupt operations. Businesses must prepare for these events as they can result in substantial financial losses if not adequately addressed. The other options illustrate different types of risks that do not fall under the category of hazard risks. Litigation pertains to potential legal challenges and disputes, which are associated with legal risk rather than physical risk. Supplier fraud relates to operational and strategic risks stemming from dishonest practices by suppliers, which directly affect supply chain integrity. Market volatility represents financial risk due to fluctuations in market conditions, impacting pricing and demand but is not related to physical hazards. Thus, natural disasters causing damage represent the classic definition and examples of hazard risks.