Which of the following best explains a 'performance risk'?
A) The potential for machinery to breakdown.
B) The extent to which the supplier has a history of success.
C) The chance that the supplier is not capable of doing the job it was hired for.
D) The extent to which the provider is trustworthy.

Question

Which of the following best explains a 'performance risk'? 
A) The potential for machinery to breakdown. 
B) The extent to which the supplier has a history of success. 
C) The chance that the supplier is not capable of doing the job it was hired for. 
D) The extent to which the provider is trustworthy.

Quizplus · Accepted Answer

Performance risk refers to the likelihood that the supplier or service provider will not be able to meet the performance requirements or deliver the expected results as per the agreement. This includes factors such as technical ability, reliability, and capacity. Option A refers to the operational risk, B refers to the track record risk, and D refers to the integrity risk.

Which of the Following Best Explains a 'Performance Risk