Free CIMAPRA19-P03-1 Exam Braindumps
P3 Risk Management (Online) Questions 37–274 (page: 29)

Updated On: 1-Feb-2026

Which of the following risks should be given highest priority?

  1. Risks which have a high impact and which may arise occasionally
  2. Risks which have a low impact but which arise frequently
  3. Risks which have a high impact and have a low likelihood of arising
  4. Risks which have a low impact and a low likelihood of arising

Answer(s): A



HGY is a major global corporation that has decided to implement the COSO Enterprise Risk Management Framework and integrate management practices throughout the organisation Which THREE of the following would be appropriate for HGY?

  1. Authorise managers and supervisors to respond immediately to any risks that emerge
  2. Make risk management an element of everyone's responsibility
  3. Recruit a Director of Risk, who will lead risk management procedures.
  4. Train staff at all levels to identify and report risks to their superiors
  5. Create a risk management team that will take responsibility for identifying and mitigating risk
  6. Identify risk as an element of HGY's overall strategy.

Answer(s): B,E,F



Division A of X plc produced the following results in the last financial year. Net profit $200,000 Gross capital employed $1,000,000 For evaluation purposes all divisional assets are valued at original cost. The division is considering a project that has a positive NPV, will increase annual net profit by $15,000, but will require average inventory levels to increase by $50,000 and non-current assets to increase by $50,000.
X plc imposes a 16% capital charge on its divisions. Given these circumstances, will the evaluation criteria of return on investment (ROI) and residual income (RI) motivate division A managers to accept the project?

  1. ROI Yes RI Yes
  2. ROI Yes RI No
  3. ROI No RI Yes
  4. ROI No RI No

Answer(s): D



Which of the following is an ethical dilemma?

  1. A company is considering giving poorly-paid staff a generous pay rise.
  2. A company is deciding whether to issue debt or equity.
  3. A company is deciding whether to make a substantial bonus payment to its directors by means of cash or shares.
  4. A company must decide whether to settle a claim from an employee who appears to have fabricated a workplace injury. The company want to avoid the cost of defending the claim.

Answer(s): A



Will owns $400,000 of shares in Company X.
Company X has a daily volatility of 1% of its share price. Calculate the 28 day value at risk that shows the most Will can expect to lose during a 28 day period. (Will wishes to be 90% certain that the actual loss in any month will be less than your predicted figure).
Give your answer to the nearest $000.

  1. $27
  2. 27.001

Answer(s): A



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