Executive-Level Blockchain Strategy from a C-Suite Perspective BBLC Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   A consortium of banks is creating a blockchain for interbank settlements. The CEOs of member banks disagree on the level of transparency and who can validate transactions. How should the executive leadership establish a governance framework?

   • ALet each bank operate its own node with its own rules, and rely on the blockchain to resolve conflicts automatically.
   • BAppoint the largest bank as the sole governing authority to make all decisions for the consortium.
   • CCreate a governance charter that defines membership, voting rights, transaction validation rules, and dispute resolution, approved by all CEOs.
   • DUse a public blockchain to avoid the need for governance among the banks.
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2. 17application · medium

   The CEO of a mid-sized logistics firm is considering a blockchain-based shipment tracking system. The CFO argues that the projected cost savings from reduced disputes are modest and the payback period is long. The CTO notes that competitors are already piloting similar systems. The CEO wants to frame the investment in a way that aligns with the company's long-term goal of becoming the preferred carrier for high-value, time-sensitive freight. Which framing best supports the CEO's strategic vision?

   • APresent the blockchain initiative primarily as a defensive move to avoid being locked out of future industry consortia.
   • BJustify the investment solely on the basis of regulatory compliance requirements for shipment data integrity.
   • CRecommend postponing the investment until the CFO can project a payback period of less than two years.
   • DFrame the investment as a strategic enabler of a differentiated customer experience, justifying it through premium pricing and long-term market share gains rather than near-term cost savings alone.
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4. 18expert · hard

   A CEO is planning a blockchain adoption roadmap for a company with strong internal resistance from IT and operations. The board wants quick results, but the CEO knows change management is critical. Which roadmap approach best balances speed and change management?

   • ARoll out the blockchain across all departments at once to achieve results quickly and overcome resistance through momentum.
   • BSpend the first year solely on change management and training, with no technical milestones.
   • CLaunch a pilot in a low-impact department, use its success to build internal champions, and then scale with dedicated change management resources.
   • DOutsource the entire implementation, including change management, to an external consultancy.
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5. 19expert · hard

   A company's CEO must decide between investing in a blockchain pilot with a 50% chance of saving $10M annually or a proven but less innovative system with a guaranteed $2M annual saving. The company has a moderate risk appetite and needs to maintain competitive positioning. What is the most appropriate executive decision?

   • ADefer the decision until more data is available on the blockchain pilot's success.
   • BChoose the proven system because the guaranteed saving is safer and still provides a positive ROI.
   • CInvest in both systems simultaneously to hedge the risk and capture both benefits.
   • DInvest in the blockchain pilot because the potential upside is five times the guaranteed saving and aligns with long-term innovation goals.
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6. 20expert · hard

   A large enterprise's CEO is evaluating whether to join an industry blockchain consortium or build a private blockchain. The consortium offers network effects but requires sharing governance with competitors. The private chain offers control but requires significant investment and may lack interoperability. The CEO must decide based on strategic value. What is the most balanced executive decision?

   • ABuild a private blockchain to maintain full control and avoid sharing data with competitors.
   • BJoin the consortium to gain network effects and industry standards, while participating actively in governance to protect strategic interests.
   • CBuild a private blockchain and later attempt to connect to the consortium's network.
   • DWait until the consortium proves successful, then join to reduce risk.
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