Free CIMAPRA19-P03-1 Exam Braindumps
P3 Risk Management (Online) Questions 209–259 (page: 22)

Updated On: 1-Feb-2026

COM is a well established company in the construction industry The company was founded by the Mac family 30 years ago and several family members still serve on the Board The company obtained a listing five years ago The Board has an appropriate balance between executive and non-executive members It also has audit remuneration and nomination committees The average age of board members is 68
COM is profitable but profit margins have been falling steadily and this year's revenues are lower than it was achieved last year The Board recognis thai it does not have a long term strategy in place and has been losing business to newer, more aggressive competitors

Which THREE of the following statements are correct?

  1. The remuneration committee should consider incentives such as share options to encourage the Board to focus on COM's long term strategy
  2. The nomination committee should have had a succession plan in place for directors.
  3. The nomination committee should be operating for the benefit of the directors.
  4. The audit committee should have alerted the Board to the impact of falling profit margins
  5. The non-executive directors should have challenged the lack of long term strategic planning

Answer(s): A,B,E



KLO is a major quoted car rental company The company is considering publishing its first cyber risk management report
AH rental bookings are made online Customers receive a booking reference number that they use to collect their cars from a convenient branch Customers enter their credit card details both so that KLO can take payment for their rental and also so that the customers can be charged automatically for late returns or damage to cars
KLO's management believes that it has three key areas of cyber risk Cyber criminals may wish to make bookings using fictitious data in order to steal KLO's cars, they may wish to use customers details to identify addresses of people who are away from home so that they can burgle houses and they may wish to abuse customer credit card details
KLO's Board is concerned that admitting to the nsk of stealing cars might encourage cnminals to exploit that vulnerability AJso. it is concerned that customers will be reluctant to rent cars if that would mean that their homes could be at risk of burglary while they are away The vulnerability of credit card details seems obvious and so the Board is not reluctant to admit to that.
Which TWO of the following are correct?

  1. The Board should be clear about all sensitive information that the company holds, but should also be clear about the robust controls in place to safeguard that information.
  2. If KLO's Board omits one of more areas of concern from the report then the independent accountant who will sign the report is unlikely to discover that omission
  3. The independent accountant who will express an opinion on the risks and controls will be unwilling to sign the report unless it contains a full account of all risks and controls
  4. The independent accountant's report on KLO's cyber risk management will refer only to those vulnerabilities that have been identified by KLO's Board
  5. Stakeholders will not care about the vulnerabilities faced by KLO provided the independent accountant can confirm that the company has sound systems in place

Answer(s): A,C



Which TWO of the following are NOT methods used for risk identification?

  1. Carrying out interviews on key members of staff
  2. Designing a process to deal with complaints
  3. Employing external advisors with specialist knowledge
  4. Accounting for waste in a manufacturing process
  5. Brainstorming ideas with colleagues from different disciplines within the business

Answer(s): B,E



JKL makes large export sales to customers in country X, whose currency fluctuates significantly against JKL's home currency JKL also makes large purchases from suppliers in countrrOC All of these transactions are in country X's currency
JKL's treasurer does not actively hedge currency risks because there is a natural hedge in place due to the company making both sales and purchases in the same currency JKL's board has instructed the treasurer to put active hedging measures in place because the risk report would otherwise have to disclose the fact that JKL has a currency risk which is not actively hedged
Which of the following statements are correct? Select ALL that apply.

  1. Risk reports can change behaviour
  2. Risk reporting is a bad thing
  3. The board may be concerned it will be criticised if it does not hedge
  4. The board does not want to be blamed for ignoring a risk.
  5. Risk reporting drives the whole risk management process

Answer(s): A,C,D



S Doc is an out-of-hours service provided by a country's government. The service allows members of the public to call and speak to a nurse who can advise on medical situations which are not obviously emergencies. Depending on the situation the caller can be referred to the full emergency services, or be advised to go to Accident and Emergency at the nearest hospital. Alternatively, a callout from a general practitioner (GP) can be organised; the caller can be advised of where GP services are available; advice can be given over the phone; or a decision can be taken that no further action is required at least until normal services resume on the next working day. There has been a suggestion that the nurses who take these calls could be replaced by suitably trained operatives who have available to them a specially designed expert system.
Which of the following are advantages of using an expert system instead of nurses?

  1. The operatives would be too careful and therefore would recommend unnecessary treatments or interventions.
  2. Some callers may present with complicated scenarios that a non-medically trained operative or expert system would be unable to recognise (for example, psychological issues).
  3. Using an expert system would make operatives less inclined to feel sorry for the caller and ensure that only relevant facts were considered in coming to a decision.
  4. The use of an expert system would ensure that only relevant questions were asked of the caller and that operatives did not miss something vital due to distraction or fatigue.
  5. The expert system will always follow the same path whereas the nurses may have more knowledge about some health issues and very little about others.

Answer(s): C,D,E



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