Which action is NOT a characteristic of a robust supplier risk assessment?

Which action is NOT a characteristic of a robust supplier risk assessment?

• A. Identifying risk factors
• B. Monitoring supplier performance
• C. Solely focusing on price and cost with no risk data
• D. Developing mitigation plans including dual sourcing

Answer: (C)

A robust supplier risk assessment rests on using risk information to anticipate and manage potential disruptions. Identifying risk factors helps you spot where trouble could come from—financial stress, quality issues, delivery reliability problems, or geopolitical exposures. Monitoring supplier performance provides ongoing signals that alert you early if a supplier is slipping. Developing mitigation plans, including strategies like dual sourcing, creates safeguards so you’re not left unprotected if one supplier falters. Focusing only on price and cost without incorporating risk data ignores these protections and can hide serious vulnerabilities, since price alone doesn’t reveal reliability or continuity risks. That’s why the option that emphasizes price with no risk information isn’t a characteristic of a robust assessment.

A robust supplier risk assessment rests on using risk information to anticipate and manage potential disruptions. Identifying risk factors helps you spot where trouble could come from—financial stress, quality issues, delivery reliability problems, or geopolitical exposures. Monitoring supplier performance provides ongoing signals that alert you early if a supplier is slipping. Developing mitigation plans, including strategies like dual sourcing, creates safeguards so you’re not left unprotected if one supplier falters. Focusing only on price and cost without incorporating risk data ignores these protections and can hide serious vulnerabilities, since price alone doesn’t reveal reliability or continuity risks. That’s why the option that emphasizes price with no risk information isn’t a characteristic of a robust assessment.