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Exam CSCP topic 1 question 545 discussion

Actual exam question from APICS's CSCP
Question #: 545
Topic #: 1
[All CSCP Questions]

A shipping company investing to reduce damages due to weather conditions is an example of:

  • A. risk tolerance.
  • B. risk exposure.
  • C. risk mitigation.
  • D. risk resilience.
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Suggested Answer: C 🗳️

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Rajiv8047
1 year ago
Selected Answer: C
Risk mitigation is the process of taking steps to reduce the likelihood or impact of a risk occurring. In this case, the shipping company is investing in measures to reduce the impact of weather conditions on its cargo, such as using weather-resistant containers or rerouting shipments around areas with severe weather.
upvoted 1 times
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Alizade
1 year, 3 months ago
Selected Answer: C
C. Risk mitigation.
upvoted 1 times
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Daesma
1 year, 4 months ago
Selected Answer: C
Risk mitigation involves taking measures to reduce the probability and/or impact of a risk. When a shipping company invests to reduce damage caused by weather conditions, it is adopting a risk mitigation strategy. It is identifying a potential risk (damage due to weather conditions) and then taking specific actions to reduce the likelihood or impact of that risk (through investments in equipment, training, technology, etc.). Therefore, this action is an example of risk mitigation.
upvoted 1 times
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[Removed]
1 year, 8 months ago
Correct answer is C
upvoted 4 times
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