Council of Supply Chain Management Professionals (CSCMP) Practice Exam 2025 - Free CSCMP Practice Questions and Study Guide

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What is the primary purpose of a Risk Register in supply chain management?

To identify, mitigate, and manage risks

The primary purpose of a Risk Register in supply chain management is to identify, mitigate, and manage risks. A Risk Register serves as a centralized document that provides a comprehensive overview of the potential risks that may affect a supply chain, including their likelihood, impact, and the strategies for addressing them. By systematically cataloging these risks, organizations can prioritize their responses and allocate resources effectively to minimize disruptive events. This proactive approach enables supply chain professionals to foresee challenges, plan for contingencies, and ensure that appropriate measures are in place to respond to risks, enhancing overall resilience and efficiency within the supply chain.

In contrast, the other options focus on different aspects of supply chain management. Tracking supply chain costs relates to financial management, forecasting customer demand involves analyzing market trends and consumer behavior, and managing inventory levels pertains to optimizing stock and resources. While these elements are crucial for supply chain operations, they do not directly address the primary function of a Risk Register, which is exclusively centered on risk management.

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To track supply chain costs

To forecast customer demand

To manage inventory levels

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