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  3. CIMAPRA19-P03-1

CIMA CIMAPRA19-P03-1 Exam (page: 1)
CIMA P3 Risk Management (Online)
Updated on: 07-Feb-2026

Viewing Page 1 of 56
CIMAPRA19-P03-1 PDF 275 Questions

The Committee of Sponsoring Organisations (COSO) outlined six key principles of Enterprise Risk Management (ERM).
Which of the following are COSO key principles?

  1. The creation of a risk aware culture.
  2. A comprehensive and holistic approach to risk management.
  3. Risk management is the responsibility of the risk committee.
  4. Consideration of risk management in the context of business strategy.
  5. Consideration of the main risk only which is financial risk.

Answer(s): A,B,D



DRAG DROP (Drag and Drop is not supported)
Select the most appropriate level of responsibility for managing each of the following risks.

  1. See Explanation section for answer.

Answer(s): A

Explanation:



K Ltd is an on-line travel agency specialising in budget package holidays to a small number of popular locations. The holidays that it sells are made up of a "package" of flights, hotel accommodation and food. K Ltd's Finance Director is concerned that the company's scope of operation is too narrow and wishes to diversify.
Identify TWO actions that K Ltd should take immediately.

  1. Set up a number of activity holidays; adventure, sports and trekking for example.
  2. Bulk book cruise accommodation and create a special package deal for retired couples.
  3. Expand the number of locations it currently serves.
  4. Re-image the locations it currently serves to make them more exotic and family friendly.
  5. Review the customer base looking at feedback, repeat sales and single visit statistics.
  6. Engage market researchers to look at future trends in holiday requirements.

Answer(s): E,F



Which of the following statements are correct?

  1. It is always possible to remove all risks when undertaking large projects.
  2. If a project has high risks it should always be accepted as the rewards will always be high.
  3. If a project has low risks it will usually have relatively low returns.
  4. Risk can always be transferred to someone else.
  5. Risk should be carefully considered when evaluating possible future projects.

Answer(s): C,E



A hospital is part of a government provided health service which is free to patients. The management of the hospital is concerned with the need to minimise the risks to which the hospital is exposed from patient litigation.
In this context, which TWO of the following are appropriate steps to manage this risk?

  1. Ensuring that patients undergoing procedures sign documentation to confirm that the risks have been explained to them and that they understand.
  2. Allocating a risk score to patients depending on age, general heath and similar consideration and refusing to admit patients whose risk score exceeds a certain threshold.
  3. Ensuring that a policy is in place to transfer or discharge critically ill patients so as to minimise fatalities in the hospital.
  4. Ensure that proper documentation is in place for all patients showing such details as symptoms, treatments, and test results.
  5. The management refuses to allow the hospital to participate in the Major Accident Plan for the city in which it is located. It believes the Plan could expose the hospital to excessive risk.

Answer(s): A,D



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