When developing risk plans for supply chain segments, which of the following product categories should have the most complete and thorough risk…

Question breakdown

Tests

Prioritize risk mitigation planning by supply chain segment

Difficulty

Easy

Key idea: Risk exposure is highest where an important product has no alternative source of supply, because a single disruption can halt the whole flow.

How to reach the answer

1. Look for the factor that removes all fallback options if something goes wrong.
2. Ocean transport, cold chain, and regulation each add risk, but each can be managed with alternate carriers, routes, or compliance processes.
3. A single available supplier means any supplier failure, quality problem, or geopolitical event cuts off supply completely.
4. The clue 'single available supplier' signals the greatest vulnerability, so that category needs the most thorough plans.

Each option

• AIncorrect. Ocean transport adds lead-time and disruption risk, but alternate carriers, ports, or modes can usually be arranged.
• BIncorrect. Cold-chain products need careful handling, but multiple providers and contingency logistics normally exist.
• CCorrect. With no alternative source, an important product is fully exposed to one supplier's failure, so it demands the most complete mitigation planning.
• DIncorrect. Regulation adds compliance work, but it does not by itself remove sourcing alternatives.

Common trap: Cold-chain or regulated products seem highest risk because they are operationally complex, but complexity is not the same as having no fallback.

In practice: Risk teams map single-source and sole-source items first and build plans such as qualifying second suppliers, holding safety stock, or securing capacity contracts.

Remember: Lack of alternative supply sources for important products is the strongest driver of risk exposure in segment risk planning.

Drafted with AI assistance and checked against the answer key.