Aug 04, 2023 Reliable Study Materials for P3 Exam Success For Sure
100% Latest Most updated P3 Questions and Answers
To pass the CIMA P3: Risk Management exam, candidates must have a solid understanding of risk management principles, theories, and techniques. They must also be able to apply this knowledge to real-world scenarios, demonstrating their ability to identify, assess, and manage risks effectively. P3 exam consists of objective test questions, case studies, and written communication tasks, and candidates are expected to demonstrate a high level of technical competence and analytical skills.
The Chartered Institute of Management Accountants (CIMA) has designed the P3 certification exam to test the candidate's proficiency in risk management. The P3 exam offers advanced-level knowledge and skills to manage organizational risks effectively. Risk management is a complex process and is a critical component of any businesses' strategy. Obtaining the CIMA P3 certification offers recognition of a candidate's skills, knowledge and enhances their marketability.
NEW QUESTION # 130
The shares of a company have a beta factor of 1.15. Therefore, which of the following must be true?
- A. The shares have more systematic risk than the stock market average.
- B. The shares have less unsystematic risk than the stock market average.
- C. The shares have more total risk than the stock market average.
- D. The shares have more unsystematic risk than the stock market average.
Answer: A
NEW QUESTION # 131
They key objective of maximizing shareholders wealth would indicates that a capital investment project with a large positive BPV should be accepted.
Which THREE of the following statements are correct?
- A. NPV Is always the best method of appraising a capital investment project.
- B. In some circumstances project with a negative NPV should be accepted.
- C. Financial methods of evaluation are not the only factors to consider when appraising a project.
- D. The directors should balance the need for a positive NPV with the company's longer term strategic requirements.
- E. If the positive NPV is large, the needs of other stakeholders needed considered.
- F. It will always be in the director's best interest to accept projects with high positive NPVs.
Answer: A,B,C
NEW QUESTION # 132
V buys vegetables and fruit from three farms located in a different part of V's country and sells them to large supermarket chains.
A recent newspaper magazine had an article on these farms showing that the farms employ illegal immigrants whose status was used by the factory's owners to force them to work for low wages and in unpleasant conditions. They are forced to live in small overcrowded caravans with no running water. They are also given meals which are cold and poor quality. These farms are located in a developed country with strong labour laws.
Classify each of the following statements as true or false.
Answer:
Explanation:
NEW QUESTION # 133
As part of risk assessment exercise for a low-cost airline you are requested to match the risks listed below with the most approriate method of minimising or dealing with each risk.
Answer:
Explanation:
NEW QUESTION # 134
Which TWO of the following might create a good control environment?
- A. The Finance Director has just been given a place on the audit committee to increase the committee's financial knowledge
- B. Management did not have time to carry out all the staff appraisals this year but all staff have received a pay increase instead
- C. Managers have good job descriptions that define their roles in the organisation clearly
- D. Management has just revisited the annual budget and made it much harder to achieve in order to try and boost profits
- E. The Board has just issued an ethical code
Answer: C,E
NEW QUESTION # 135
Select the most appropriate level of responsibility for managing each of the following risks.
Answer:
Explanation:
NEW QUESTION # 136
BCD has set up a number of functions within its security operations centre (SOC) One of these is a Hunt team.
Which of the following is the primary function of a Hunt team?
- A. To look for weaknesses in other peoples' systems
- B. To look for solutions in response to threats.
- C. To look for weaknesses in BCD's cyber security system.
- D. To look for signs that BCD's system has been breached
Answer: D
NEW QUESTION # 137
Match the descriptions shown in the boxes below with the method of quantifying risk exposure it best describes.
Answer:
Explanation:
NEW QUESTION # 138
HGF is a medium-sized manufacturing company its factory and administrative offices are in separate building on the same site. The company uses a wireless network that enables factory and office staff to access systems and to access email.
Which THREE of the following statements are correct?
- A. HGF should shield the factory and office buildings and connect them through a wired link
- B. All staff should be trained in wi-fi security
- C. Wi-fi enabled devices should be removed where possible
- D. Networked factory equipment is inherently secure
- E. An Internal Auditor should drive round the site perimeter to check whether a laptop can detect HGPs wi-fi network
- F. Security can be assured by encrypting the wi-fi network
Answer: B,E,F
NEW QUESTION # 139
Move the category of risk to the box beside the risk description it best matches.
Answer:
Explanation:
NEW QUESTION # 140
In terms of Cyber Security, which THREE of the following represent Personally Identifiable Information (Pll)?
- A. Football team affiliation
- B. Model of first car.
- C. Sports club membership number
- D. Old phone number
- E. First pet's name
- F. Position held in a charity.
Answer: A,C,F
NEW QUESTION # 141
Which THREE of the following are true with regard to managing the changeover from an old to a new computer system?
- A. All methods of changeover carry high risk and it is the preparation consideration of data compatibility and data cleansing before the changeover which has the biggest impact on the smoothness of the transition
- B. Parallel running involves keeping the old system running normally until certain data retention criteria are met or confidence is gained, while the new system deals with the new workload Data input is usually earned out on both systems
- C. Direct changeover, or big bang, is only used when the systems are significantly different such that comparing the outputs of the two systems is largely irrelevant
- D. Pilot changeover moves the simplest part of the business to the new system first
- E. Phased changeover is the safest and slowest method of changeover
- F. Phased changeover moves individual portions of the business to the new system one at a time
Answer: C,E,F
NEW QUESTION # 142
JHG manufactures inexpensive cars that compete largely on price Its cars have very basic equipment and small but economical engines JHG's Board is considering launching a luxury brand of cars that will be far better equipped, more comfortable and have much better performance Which THREE of the following would be relevant factors to incorporate into the stress testing of this new strategy to create a luxury brand?
- A. Reductions m motorway speed limits
- B. Increased tax on vehicle emissions
- C. Sales of JHG's existing range of cars
- D. The need for consumer research
- E. Potential changes in interest rates.
- F. The cost of designing new cars.
Answer: B,C,F
NEW QUESTION # 143
SDF is a quoted company that has a large internal audit department.
Which of the following would impair the independence of SDF's internal audit?
- A. Internal audit staff salaries are linked to a company-wide salary scheme.
- B. Junior internal audit staff are recruited directly from university. They spend two years with the company before moving into other departments within SDF.
- C. It is left to the individual members of the internal audit department to report any conflicts of interest associated with a proposed investigation to which they have been assigned.
- D. Internal audit staff receive a bonus whenever they discover a compliance error.
- E. The head of internal audit reports directly to SDF's chief accountant.
Answer: B,D,E
NEW QUESTION # 144
Which of the following statements are true of residual risk?
- A. Residual risk has to be accepted.
- B. Residual risk should never be accepted.
- C. Residual risk may be accepted if management feels the company can bear the risk.
- D. Residual risk is the risk that remains after risk mitigation has taken place.
- E. If residual risk is too great then the company should not expose itself to the risk situation.
Answer: C,D,E
NEW QUESTION # 145
Z plc has recently undertaken a SWOT analysis. The SWOT analysis identified two main threats to Z plc:
* The threat that the currency of Z plc's main overseas competitor weakens compared to Z plc's home currency.
* The threat that there will be a military coup which will overthrow the government in the country that Z plc purchases most of its raw materials from.
Which TWO of the following categories of risk correspond most closely to the above threats?
- A. Political risk
- B. Business risk
- C. Economic risk
- D. Financial risk
Answer: A,C
NEW QUESTION # 146
D has decided to invest in a new factory at a cost of $6,000,000. The discount rate of the project is 22% and the PV of tax shield is $80,000.
What is the IRR?
Give your answer to two decimal places.
Answer:
Explanation:
21.71%
NEW QUESTION # 147
Which of the following will increase the value of a call option?
- A. An increase in the time to expiry.
- B. An increase in the strike price.
- C. A decrease in the volatility of the share.
- D. A decrease in the market value of the share.
Answer: A
NEW QUESTION # 148
GHJ is a manufacturing company that insures against the financial costs associated with industrial injuries involving staff. The Health and Safety Office is part of GHJ's Operations Department. GHJ's insurers will automatically increase the insurance premium by 10% in the event of a claim against the policy.
Which TWO of the following are correct?
- A. The insurance cover means that management need only be concerned with the possibility of a 10% increase in the premium m the event of a serious accident.
- B. The automatic increase in the insurance premium is part of the financial risk associated with industrial injuries.
- C. Linking the risks associated with industrial injuries will overcomplicate the management of those risks.
- D. The risk of an increase in the cost of injury insurance cover should be made the responsibility of the company's finance function
- E. The risk that a serious accident could impair the morale of uninjured staff is related to the financial risk associated with accidents.
Answer: B,D
NEW QUESTION # 149
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CIMA P3 exam covers a broad range of topics related to risk management, including risk identification, assessment, and response planning. It also examines how risk management can be integrated into various business processes, such as budgeting and performance management. P3 exam is structured in a way that allows candidates to demonstrate their ability to apply theoretical concepts to real-world scenarios, making it an invaluable tool for professionals looking to enhance their risk management skills.
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