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Exam CSCP topic 1 question 855 discussion

Actual exam question from APICS's CSCP
Question #: 855
Topic #: 1
[All CSCP Questions]

The company's supply chain is exposed to a number of risks that vary in their severity, probability, and detectability. Each of these factors is estimated as follows:

- Severity (10 - most severe, 1 - least severe);
- Probability (10 - almost certain, 1 - almost improbable);
- Detectability (10 - absolute uncertainty, 1 - almost certainly will be detected).

A Risk Manager has developed the following risk matrix:



Assuming that the cost of addressing any of the above failures is the same, which of the following risks should the company address first?

  • A. A
  • B. B
  • C. C
  • D. D
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Suggested Answer: A 🗳️

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Ayenco
1 month, 2 weeks ago
Selected Answer: D
I think the answer here should be D if Risk = severity x probability x detectability
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