CIMA Exam CIMAPRO19-P03-1 Topic 4 Question 39 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 39
Topic #: 4

An electricity company owns and operates a nuclear power station located ten miles from a large city. A recent and very extensive engineering examination of the power station concludes with the estimate that the probability of a major nuclear disaster within the next 20 years is 0.2%.

Which of the following best explains the relevance of quantifying the risk in that way?

AThere is no acceptable level of risk for a major nuclear accident and so the probability has little information value in itself.

BThe probability is so low as to be ignored.

CThe directors will be able to argue that they were not negligent in the event of a major disaster within the 20 year period.

DThe calculation of a precise probability demonstrates that the engineers who conducted the inspection are experts in their field.

Show Suggested Answer

Suggested Answer: A, B, D

by Deonna at Oct 15, 2022, 06:02 PM

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Chau

3 days ago

I agree, it helps the company assess the potential consequences.

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Kate

5 days ago

I think quantifying the risk is important for decision-making.

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