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Midlantic Manufacturing is an electronics company based in Pennsylvania. As part of the company's new enterprise risk management program, the risk manager is analyzing the
Midlantic Manufacturing is an electronics company based in Pennsylvania. As part of the company's new enterprise risk management program, the risk manager is analyzing the supply chain for producing each of Midlantic's products. One product requires a specialized component that is produced in an area outside of Los Angeles. That area is subject to wildfire risk and earthquake risk. Should a wildfire or earthquake force shutdown this key supplier, Midlantic would be unable to produce the product. For Midlantic, this external risk which could negatively impact the supply chain is what type of exposure? Available answer options Select only one option A Financial risk B Risk due to changing economic factors C Political and regulatory risk D Natural or man-made catastrophe risk
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