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SOFE AFE Exam - Topic 1 Question 41 Discussion

Posted by Blair on Jun 19, 2022 at 03:45 PM

The risk that the obligation will not be fulfilled and affects the value at which the liability is transferred is known as:

Suggested Answer: B

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13 comments · newest first
AL
Alberta 11 months ago
I think performance risk could fit too, though!
SH
Shannan 11 months ago
Nonperformance risk affects liability value transfer.
HE
Herminia 12 months ago
Wait, is it really called nonperformance risk? Sounds odd.
LA
Laine 12 months ago
Totally agree, that's the right term.
LE
Leandro 12 months ago
It's definitely nonperformance risk!
DE
Delfina 1 year ago
Relocation risk doesn't seem to fit at all. I'm leaning towards nonperformance risk as well.
HE
Herschel 1 year ago
Hypothetical risk sounds familiar, but I don't think it's the right term for this situation.
RA
Raylene 1 year ago
I remember a question about nonperformance risk from our practice exam. It feels like the right choice here.
ME
Merilyn 1 year ago
I think this might be related to performance risk, but I'm not entirely sure.
BU
Buffy 1 year ago
Okay, I think I've got a strategy here. I'll start by comparing the details in the two images, then use that to evaluate the options and select the best one.
FL
Fletcher 1 year ago
I'm feeling confident about this one. The key information is that the service desk is provided by an internal service provider, so they would be responsible for managing the performance against their own service targets. I'm going to go with option B.
EL
Elenor 1 year ago
Sampling sounds like it could be about layers or photons too, but I'm leaning towards B since it fits better with what we talked about in class.
KA
Kanisha 1 year ago
I remember practicing something similar where we talked about fixtures. I feel like D is probably the right answer.
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