Question

Franco, a purchasing manager, reorders an existing product from a list of acceptable suppliers without doing any quality check.

What risk is Franco exposing his organization to?
A) Financial risk
B) Operational risk
C) Quality risk
D) Market risk

Answer 1

Franco is exposing his organization to quality risk by not performing any quality checks when reordering from suppliers, which can lead to customer dissatisfaction and damage to the brand.

Step-by-step explanation:

By not conducting any quality check, Franco, the purchasing manager, is exposing his organization to C) Quality risk. When products are reordered from suppliers without verifying their quality, there's a risk that the products may not meet the organization's or customers' standards, which can lead to customer dissatisfaction, returns, and potential loss of brand credibility. It's critical for any organization to have a quality control process in place to ensure that all products meet specified requirements before they are sold to the customers or used in the company's operations.