this information, by the way, isn't hard to find. this took google less than .2 seconds to find.
"Not Electrically Conductive:
Arctic Silver 5 was formulated to conduct heat, not electricity.
(While much safer than electrically conductive silver and copper greases, Arctic Silver 5 should be kept away from electrical traces, pins, and leads. While it is not electrically conductive, the compound is very slightly capacitive and could potentially cause problems if it bridges two close-proximity electrical paths.)"
being capacitive, yes, this could easily fry parts. its really hard to do though unless your a complete slob when appling.