A risk management program for a fast food chain finds a high probability of legal action due to possible food poisoning. Accordingly, the firm establishes legal plans to address potential lawsuits. This is a mitigation step for which type of risk?

• A. Technical
• B. Operational
• C. Environmental
• D. Financial

The supply manager for a decentralized supply management organization is looking to transition the department's current buyers into category managers. The supply manager wishes to make these changes with minimal organizational disruption. Which of the following arrangements would BEST accomplish this goal?

• A. A center-led purchasing organization, with the new category managers reporting to the supply manager and assigned to their original locations
• B. A decentralized reporting structure, where the supply manager controls processes through annual goals and objectives assigned to each category manager
• C. A matrix organization, whereby each category manager reports to both the head of the location and the supply manager
• D. A project organization, where category managers are assigned by priorities based on greatest aggregate spend and business

A supply manager for CDE Inc. hires several young supply management professionals. The new staff members are eager to gain experience and use their technological skills. Some staff members, however, are planning to retire, and the supply manager does not want to lose their expertise and perspective. Given this situation, which of the following is the BEST course of action for the supply manager to take?

• A. Use functional rotation to expand the new employees' skills
• B. Offer the new staff members opportunities to work on special projects
• C. Facilitate hands-on training and internal workshops for the new staff members
• D. Match new employees with experienced employees in mentoring relationships

The compliance division within EFG, Inc. is reviewing the company's procedures for monitoring and addressing employee fraud. The current system involves employees who suspect fraud reporting their concerns to an internal company email mailbox. Many of the firm's employees are concerned about the confidentiality of this process. Which of the following would be the BEST course of action for EFG to take in order to reduce this concern?

• A. Explore opportunities to outsource the reporting function to an independent third party
• B. Develop a training program that emphasizes the risks caused by employee fraud and the importance of proper reporting
• C. Announce through the intranet the company's commitment to non-retaliation in fraud reporting
• D. Change the reporting policy and have employees report concerns directly to their individual managers

A manufacturer of multi-media equipment plans to expand into new product areas requiring materials and components the firm has not previously purchased, as well as greater reliance upon global suppliers. The timeline for the project will be very demanding. The firm's supply manager has experience with enterprise resource planning (ERP) and believes ERP will be helpful for the new project. The firm has never before invested in such technology and does not have the resources to do so. Given this situation, which of the following actions should the supply manager take?

• A. Hire additional staff with ERP expertise
• B. Manage the project using the firm's current process
• C. Present top management with justification for the cost of the new system
• D. Train supply management staff in material optimization concepts