Free CIMAPRA19-P03-1 Exam Braindumps
P3 Risk Management (Online) Questions 155–170 (page: 12)

Updated On: 1-Feb-2026

TRF is conducting a post completion audit on an investment in a pollution control machine that has reached the end of its five year useful life.
TRF could have been heavily fined if the machine had failed to keep pace with the output of emissions, measured in units. TRF's cost of capital is 10%.
When the machine was purchased, there was a choice of three machines on the market:

TRF purchased the Big machine, but annual requirements only exceeded 600,000 once, in year 3, when 720,000 units of emissions were emitted.
Calculate the amount that the post completion audit shows TRF overpaid for the ownership costs associated with this machine.
Give your answer to the nearest whole $ (in $'000s).

  1. $12582000

Answer(s): A



Z plc has recently undertaken a SWOT analysis. The SWOT analysis identified two main threats to Z plc:
· The threat that the currency of Z plc's main overseas competitor weakens compared to Z plc's home currency.
· The threat that there will be a military coup which will overthrow the government in the country that Z plc purchases most of its raw materials from.
Which TWO of the following categories of risk correspond most closely to the above threats?

  1. Financial risk
  2. Political risk
  3. Business risk
  4. Economic risk

Answer(s): B,D



The government health service in country H employs well over 100,000 staff in various locations throughout the country. Traditionally, local management has had high levels of autonomy in relation to personnel issues and there are several different human resources (HR) managers located across various regions.
The government has decided to introduce a completely new HR/payroll information system to have just one database containing all relevant information about every staff member on the payroll (start date, job title, salary and all other details) and to use this information to begin streamlining recruitment and HR policies.
The government has outsourced the system's development to a reputable company.
Which of the following are disadvantages associated with this IT project?

  1. There is a risk that the system will not capture all of the existing terms and conditions of staff, thus leading to industrial relations problems later.
  2. There is a risk that significant anomalies in the current system will be highlighted.
  3. Any initial problems in running the system could have serious repercussions as it could lead to, for example, staff not being paid, payroll tax not being properly collected, and similar difficulties.
  4. The system could make it more difficult to employ specialist medical staff on terms and conditions which are different from the normal terms and conditions available.
  5. The amount of data storage space required to run the system may not be available.
  6. The government is very heavily dependent on the contractor to whom this assignment is outsourced and if they do not to perform as required this could have serious consequences.

Answer(s): A,C,F



NLC, a retail chain, is considering moving its information systems which support its point of sale infrastructure into the cloud.
Which TWO factors should it consider in choosing its supplier?

  1. Cheapest option offered
  2. Certified security
  3. Proximity of facilities to head office
  4. Robust service level agreement

Answer(s): B,D



DRAG DROP (Drag and Drop is not supported)

VBN uses a balanced scorecard to monitor the performance of its divisions. Classify each of the following decisions taken by a division's management team as either commercially sound or dysfunctional.

  1. See Explanation section for answer.

Answer(s): A

Explanation:



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