Question

Catastrophes such as recent earthquakes and the 2011 tsunami in Japan pointed out a need for many organizations to evaluate and manage their:

A. Political risk.
B. Derivative risk.
C. Supply-chain risk.
D. Compliance risk.

Answer 1

Catastrophes like the 2011 tsunami in Japan show the importance of managing supply-chain risks for organizations, emphasizing the need for robust contingency plans and diversified suppliers to mitigate disruptions.

Step-by-step explanation:

The catastrophes such as recent earthquakes and the 2011 tsunami in Japan pointed out a need for many organizations to evaluate and manage their supply-chain risk. Natural disasters can disrupt production, logistics, and the coordination of resources across the globe, highlighting the vulnerability within the supply chain networks. Organizations must therefore assess potential supply chain disruptions and develop strategies to mitigate these risks. This includes contingency planning, diversifying suppliers, and investing in technology that enhances supply chain resilience.