Certified Maintenance & Reliability Professional (CMRP) Practice Exam

This type of risk focuses on the ability to meet life cycle cost objectives:

1. Performance Risk

2. Cost Risk

3. Safety Risk

4. Technology Risk

The correct answer is: Cost Risk

The focus on the ability to meet life cycle cost objectives is inherently linked to cost management in the context of maintenance and reliability. Life cycle cost objectives take into account all costs associated with the asset over its entire life span, including acquisition, operation, maintenance, and disposal costs. When considering cost risk, the assessment revolves around uncertainties that could potentially lead to higher expenditures than anticipated. This encompasses various factors such as fluctuating prices for materials, uneven maintenance requirements, or unexpected breakdowns. Understanding and managing cost risk is essential for organizations aiming to achieve their financial objectives while ensuring that their assets operate efficiently throughout their life cycle. The other types of risks mentioned do not specifically pertain to life cycle costs in the same manner. While performance risk relates to how well an asset performs against expected standards, safety risk focuses on the potential for accidents or health hazards that could arise during the asset's operation. Technology risk addresses the challenges associated with adopting and integrating new technologies. Each of these risks is important but does not directly align with the concept of meeting life cycle cost targets.