CIMA Risk Management P3 Question # 100 Topic 11 Discussion

CIMA Risk Management P3 Question # 100 Topic 11 Discussion

P3 Exam Topic 11 Question 100 Discussion:
Question #: 100
Topic #: 11

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?


A.

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


B.

The probability is so low as to be ignored.


C.

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


D.

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


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