Free CIMAPRO19-P03-1 Exam Braindumps
P3 Risk Management Questions 86–90 (page: 19)

Updated On: 9-Feb-2026

You are in process of compiling a risk register for P, a company which maintains railway tracks. This helps prevent accidents and ensures the trains are not disrupted due to problems with the track.
Which of the following statements are valid?

  1. A properly compiled risk register will identify all the risks to which P could possibly be exposed.
  2. A risk register should profile each risk in terms of probability and consequence.
  3. A risk register should concern itself with only the direct consequences of each risk such as injury to passengers and ignore indirect risks, such as re-routing trains due to an accident.
  4. The risk register for P should be updated frequently: for example, every two weeks.
  5. The risk register should specify the individual, or group of individuals, responsible for the management of each risk.

Answer(s): B,E



DRAG DROP
Match the descriptions shown in the boxes below with the method of quantifying risk exposure it best describes.

  1. See Explanation section for answer.

Answer(s): A

Explanation:



Risk management involves all parties in an organisation. Which of the following describe the Board's responsibilities for risk management?

  1. The Board is responsible for choosing the least risk products to promote.
  2. The Board is responsible for maintaining a robust system of internal controls.
  3. The Board is responsible for addressing any weaknesses in internal controls.
  4. The Board is responsible for considering whether weaknesses in internal controls need to be addressed.
  5. The Board is responsible for safeguarding the company's assets.

Answer(s): B,D,E



You are the Management Accountant for a company which supplies baked food to a string of retail outlets; biscuits, cakes, savoury snacks etc.
You discover that a trainee employee, who is responsible for cleaning out the delivery vans has been taking damaged goods and packets which have reached their sales expiry date and has been selling them to friends. These products would otherwise have been discarded as waste. The trainee in question is the nephew of one of the senior managers.
What is the correct course of action?

  1. Have a quiet word with the trainee and ask him to stop.
  2. Have a quiet word with the senior manager, the trainee's relative and ask them to deal with it.
  3. Document the facts and escalate to the trainee's manager.
  4. Do nothing, the product was designated as waste anyway.

Answer(s): C



SC is a professional football club which is currently listed on a recognised stock exchange. There is a proposal that it builds a new stadium at a location a considerable distance from its current stadium. There is strong support within the club for the move as the current ground is now over 40 years old and has not been extensively modernised in that time.
However, there is a lot of opposition to the move in the area where it is proposed to locate the new stadium. Objectors claim that the new stadium will increase traffic and pollution in the area and will adversely affect the value of their properties.
Which of the following statements about the responsibility of the board of SC is correct?

  1. SC is now a listed company and so the board should prioritise the interests of shareholders to the exclusion of other stakeholders.
  2. A football club needs to be part of the community in which it exists and so the board should consider the other stakeholders.
  3. The board should conclude that objectors to the new stadium have a legal course of action open to them and if they do not take legal action they should ignore them.
  4. If the board of directors is seen as acknowledging its responsibility to stakeholders other than shareholders this will enhance the reputation of the club and it will be more likely that a compromise can be reached with objectors.
  5. The board should share information about the new development with the local community only to the extent that it is legally obliged to do so.

Answer(s): B,D



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