P3 Risk Management (Online) Exam Questions in PDF and Online

QUESTION: 6

D is a large oil refinery.
The managers have identified four risks shown in the risk map below:
Which of the risk mitigations listed below would be the best for dealing with the two risks classified as medium likelihood and high impact?

Accept
Reduce
Transfer
Avoid

Answer(s): C

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QUESTION: 7

Which of the following are true of an effective risk management culture?

Staff should be penalised for being associated with negative events.
All risk should be eliminated.
Responsibility for risk management should be devolved to a risk manager.
All staff should be aware of risks affecting the entity.
Risk management should be regarded as part of the overall business strategy.
The directors should take an active interest in risk management.

Answer(s): D,E,F

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QUESTION: 8

The safety guard on a piece of equipment was broken. The factory manager suspended an operator who refused to operate the equipment until it was repaired. The factory manager paid another operator a bonus for operating the damaged equipment until the safety guard could be repaired.
What does this incident say about the control environment within that factory?

Management is not particularly concerned with managing risks.
Employees will perceive that management does not care about health and safety risks.
This factory's safety record is likely to be poor.
Employees are motivated to maintain productivity.
Management has a proportionate and considered attitude towards risk.

Answer(s): A,B,C

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QUESTION: 9

K is a large mining company. In its risk report it states that there is a risk of accidents and injury because of the nature of the industry. It states that it has staff training in place and complies with all Health and Safety regulations but in spite of this there will still be a residual risk that accidents and injuries may occur.
Which of the following statements are correct?

The shareholders should not invest because there is still a residual risk.
The directors are avoiding their responsibilities by saying there is a residual risk.
Some risks cannot be eliminated.
Accepting a residual risk does not imply the company is reckless.
Most companies in this industry will say something similar in their risk report.

Answer(s): C,D,E

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QUESTION: 10

P Ltd manufactures and sells electrical goods through retail outlets. N is P Ltd's Sales Director. He has been recently promoted from a senior sales position with P Ltd. He has been forced to spend the first six months as Sales Director on dealing with an administrative mess left behind by the previous sales director.
You are a Senior Management Accountant at P Ltd. You have worked with N for many years.

N has worked hard and has made many changes that have brought significant benefit to the business.
N has asked you to postpone the recording of some purchase invoices so that he will meet his quarterly targets on profit margin.
What should you do?

Collect all the facts, distance yourself from the situation but say nothing.
Write up the facts of the issue and put it on your files.
Document the situation and present the facts to your manager.
Do nothing, no rules have been broken, tell N that you cannot do as he asks and that he needs to abide by the professional codes.

Answer(s): D

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CIMA P3 Risk Management (Online) P3 Risk Management (Online) Exam Questions in PDF

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QUESTION: 9

QUESTION: 10