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CIMA P3 Exam Dumps Questions and Answers

Exam Code: P3
Exam Name: Risk Management
Certification: CIMA Strategic level
Vendor: CIMA
Last Update: Jul 20, 2024
Questions: 339
10  Customers Passed CIMA P3
87%  Average Success In Real Exam
90%  Questions came word by word from this dump
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Risk Management Questions and Answers

Questions 1

S, a qualified and experienced professional accountant, has been appointed as a non-executive member of the Audit Committee of X X has recently obtained a listing on the second tier of a reputable Stock Exchange

B, the Finance Director, is only worried about the maintenance of proper financial controls and is less concerned with operational controls

S has asked A. the Production Director, to produce regular reports for the Audit Committee on production specification compliance and related issues A is concerned that this means S does not think he is doing his job properly and doubts his integrity

In relation to this scenario, which of the following statements are valid?

Select ALL that apply.



The appointment of an independent professionally qualified and experienced accountant will help strengthen the Audit Committee.


A is correct in believing that being asked to report to the Audit Committee in the manner described above suggests a lack of trust in his ability or integrity


The Audit Committee should plan for the receipt of regular reports on production specification compliance and related issues


B is correct to be more concerned about the maintenance of financial controls because they are inevitably more important than operational controls.


If X is not seen to have an effective Audit Committee it will be exposed to increased market risk


There is no benefit for X of A producing reports for the Audit Committee unless there are some members on the Audit Committee who have expertise in the production area

Questions 2

A patient has been prescribed a new medicine by their physician. The medicine is accompanied by a leaflet describing potential adverse effects associated with taking it. Most of these potentially adverse effects are trivial, but the leaflet states that three patients in every 10,000 who take the medicine suffer a severe reaction requiring urgent medical attention.

Which of the following statements is true?



Statistical probabilities mean very little in themselves when dealing with decisions that could have serious consequences, such as whether to take this medicine.


The patient should ignore the risk because there is only a 0.03% risk of a severe adverse reaction.


Statistically, the medicine is safe.


The patient should not be concerned because only those few patients who are susceptible to this reaction are at risk.

Questions 3

Which of the following is an ethical dilemma?



A company is considering giving poorly-paid staff a generous pay rise.


A company is deciding whether to issue debt or equity.


A company is deciding whether to make a substantial bonus payment to its directors by means of cash or shares.


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.

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