A sole-source chemical supplier files for bankruptcy, and the water plant team says 'that's procurement's issue' and leaves it off the register. What should they recognize?
Select an answer to reveal the explanation.
Short Explanation
When your only chemical vendor goes under, treatment trains do not care whose budget code owns the PO. Supplier failure is an external threat to operations—put it on the register.
Full Explanation
A sole-source chemical supplier filing for bankruptcy is an external supplier threat that can disrupt water-plant operations and objectives. Leaving it off the register as "procurement's issue" ignores operational continuity. It is not an internal personnel dispute, a facilities labeling preference, or a pure information risk about website downtime. Exam caveat: critical supplier failure belongs on the operational risk register with dual ownership across procurement and the plant. Operational check: add the supplier-failure row, identify alternate sources or buffer stock, review contract termination and emergency purchase authorities, and set a trigger for elevated monitoring if bankruptcy news worsens. Brief the utility director on time-to-stockout under current inventory for civic water treatment chemicals. In municipal practice, record the rationale in the risk procedure or committee minutes so future staff apply the same rule under budget pressure. Re-validate after the next seasonal peak or org-chart change to confirm the civic control still holds as designed for residents and staff. In municipal practice, record the rationale in the risk procedure or committee minutes so future staff apply the same rule under budget pressure. Re-validate after the next seasonal peak or org-chart change to confirm the civic control still holds as designed for residents and staff.