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PFMP · Question #662

PFMP Question #662: Real Exam Question with Answer & Explanation

The correct answer is A: Execution risk. See the full explanation below for the reasoning.

Question

You are the portfolio manager for your military-vehicle service firm, which has been in existence for 20 years. You have a number of components under way, and others in the pipeline. One component involves a new gas detection system, which uses new technology. It has interfaces with two other existing components plus one in development. Recently, a simulator, used by three components, had to be shut down completely as it was leaking nitrogen and could lead to asphyxiation. You reported it immediately to the Hazardous Materials and Pipeline Safety Administration. This is an example of a:

Options

  • AExecution risk
  • BStructural risk
  • CCritical incident
  • DKnown unknown

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