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ISM LEAD Exam - Topic 3 Question 13 Discussion

Actual exam question for ISM's LEAD exam
Question #: 13
Topic #: 3
[All LEAD Questions]

Using an outsourced freight firm's transportation services rather than delivering products to customers directly is an example of which of the following risk management strategies?

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Suggested Answer: D

Risk Management Strategy: Using an outsourced freight firm's transportation services transfers the risk associated with transportation from the company to the outsourced provider.

Definition of Transference: Risk transference involves shifting the responsibility and consequences of a risk to another party, often through contracts or insurance.

Application: By outsourcing transportation, the company relies on the freight firm to manage and mitigate risks related to delivery, such as delays, damage, or loss of goods.

Benefits: This strategy can reduce the company's direct exposure to transportation risks and leverage the expertise and resources of specialized freight firms.

Reference: Risk management frameworks, such as ISO 31000 and the PMBOK Guide, discuss risk transference as a viable strategy for managing specific types of risks by shifting them to third parties.


by Page at Sep 16, 2024, 03:03 AM

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Helene
3 months ago
I thought it was avoidance at first, but transference makes sense.
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Sherill
3 months ago
Surprised this is even a question, it's so obvious!
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Shayne
4 months ago
Wait, are we sure it's not mitigation?
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Adell
4 months ago
I agree, outsourcing shifts the risk.
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Latonia
4 months ago
That's definitely transference!
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Erinn
4 months ago
I keep mixing up avoidance and transference. I wonder if outsourcing counts as avoiding the risk altogether?
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Rosann
4 months ago
This question feels familiar; I think we practiced a similar one where outsourcing was linked to risk transference.
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Val
5 months ago
I'm not entirely sure, but I remember something about mitigation being related to reducing risks.
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William
5 months ago
I think this might be about transference since we're shifting the responsibility to the freight firm.
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Herminia
5 months ago
I'm feeling a bit lost on this one. Is the company mitigating the risk by using the freight firm, or is that considered transference? I need to review my notes on risk management strategies.
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Walton
5 months ago
Okay, let me break this down. The company is outsourcing the delivery, so they're not avoiding the risk entirely. They're also not assuming the risk themselves. I'm going to go with D, Transference.
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Stacey
5 months ago
Hmm, I'm not totally sure about this one. I'm debating between B, Mitigation, and D, Transference. I'll have to think it through carefully.
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Latrice
5 months ago
This question seems straightforward. I think the answer is D, Transference, since the company is transferring the risk of delivery to the outsourced freight firm.
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Keshia
5 months ago
Okay, let me think this through. We need to capture traffic for the 192.168.8.0/24 network, so I'm guessing we'll need to use a filter or a specific command to target that range of IPs. I'll try to remember the syntax for that.
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Shantell
1 year ago
Haha, I bet the answer is D. Transference. Outsourcing is like saying, 'Hey, you deal with the headaches of shipping, I'm out!'
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Alaine
1 year ago
I'm not sure, but I think it could also be B) Mitigation. By using a reliable firm, we are reducing the risk of delivery issues.
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Margurite
1 year ago
This one's tricky, but I'm going with C. Assumption. By outsourcing the transportation, the company is essentially assuming the risk of product delivery.
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Gladys
1 year ago
That's a good point, A could also be a valid strategy in this case.
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Dalene
1 year ago
But wouldn't A be a valid option as well? Avoidance by not directly handling the transportation?
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Kandis
1 year ago
I agree with you, D makes sense. It's all about shifting the risk to someone else.
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Luisa
1 year ago
I think it's D. Transference. By using an outsourced firm, the company is transferring the risk of transportation to them.
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Mirta
1 year ago
I agree with Carlton. Transferring the risk to the freight firm makes sense.
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Carlton
1 year ago
I think it's D) Transference.
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Michael
1 year ago
Hmm, I'm not sure. Could it be B? Mitigation, since using an outsourced freight firm might help reduce the risks associated with direct delivery.
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Carin
1 year ago
I see your point, it could also be considered as mitigation. Both D) Transference and B) Mitigation seem to fit the scenario.
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Desmond
1 year ago
But wouldn't it also be B) Mitigation, since you are reducing the risk by using a specialized firm?
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Jacquline
1 year ago
I agree with that, it makes sense to transfer the risk to another party.
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Luann
1 year ago
I think it's D) Transference, because you are transferring the risk of transportation to the outsourced firm.
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Rebeca
1 year ago
I think the answer is D. Transference. Outsourcing the transportation to a freight firm is a way to transfer the risk of product delivery to another party.
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Lorita
1 year ago
Yes, by using a freight firm, you are shifting the responsibility and potential risks to them.
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Sunshine
1 year ago
I agree, outsourcing transportation is a form of risk transference.
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