Corrective and Preventive Actions Definition Quiz

What is the purpose of corrective actions?

Which term refers to necessary actions taken to address a decline in sales figures compared to pre-determined targets?

What does risk-based thinking involve?

Which action is associated with preventive actions?

In the context of risk types, what does risk-based thinking emphasize?

What is the primary focus of corrective actions?

What is one of the key steps in developing a control plan?

What is a primary benefit of implementing a control plan?

What do control plans typically focus on identifying?

Which method is NOT mentioned as a part of the optimization methods for developing a control plan?

What does a control plan provide a thorough evaluation of during its development?

Which characteristic is NOT typically considered during the development of a control plan?

What type of risk is associated with mis-selling products or services to customers?

Which risk type involves unexpected bankruptcy or shutdown of a key vendor?

What is a preventive action against damaging or unfair actions by vendors?

Which risk type involves misuse of authority to embezzle firm’s assets for personal gains?

What is a correct preventive measure against delay in submitting mandatory reports to regulators?

Which risk type is associated with damage to tangible assets from natural disaster events?

The primary focus of corrective actions is to address a decline in sales figures compared to pre-determined targets.
Corrective actions involve necessary actions taken to address deviations from expected results.

Risk-based thinking involves identifying and assessing potential risks and opportunities in the context of the organization.
It emphasizes the identification of risks that have the most significant impact on the organization.

Preventive actions are associated with taking proactive measures to prevent problems from occurring.
Examples of preventive actions include:
- Implementing controls to prevent mis-selling products or services to customers.
- Conducting due diligence on vendors to prevent unexpected bankruptcy or shutdown.
- Implementing internal controls to prevent misuse of authority for personal gains.

A primary benefit of implementing a control plan is to identify and mitigate risks.
Control plans typically focus on identifying key process variables and ensuring they are controlled within specified limits.
One of the key steps in developing a control plan is to provide a thorough evaluation of process variability and risk.
Control plans provide a systematic approach to managing processes and reducing variability.

Operational risk involves damage to tangible assets from natural disaster events.
Strategic risk involves unexpected bankruptcy or shutdown of a key vendor.
Compliance risk involves delay in submitting mandatory reports to regulators.
Reputation risk involves damaging or unfair actions by vendors.

Optimization methods for developing a control plan include design of experiments (DOE) and failure mode and effects analysis (FMEA).
Simulation modeling is NOT mentioned as a part of the optimization methods for developing a control plan.

Characteristics considered during the development of a control plan include process variability, risk, and cost.
Sustainability is NOT typically considered during the development of a control plan.