Online Access Free CIMA.P3.v2023-01-16.q90 Practice Test (Page 15)

P3 Exam Question 66

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?

A.Accepting a residual risk does not imply the company is reckless.

B.Some risks cannot be eliminated.

C.The shareholders should not invest because there is still a residual risk.

D.Most companies in this industry will say something similar in their risk report.

E.The directors are avoiding their responsibilities by saying there is a residual risk.

P3 Exam Question 67

HGY is a major global corporation that has decided to implement the COSO Enterprise Risk Management Framework and integrate management practices throughout the organisation Which THREE of the following would be appropriate for HGY?

A.Train staff at all levels to identify and report risks to their superiors

B.Make risk management an element of everyone's responsibility

C.Authorise managers and supervisors to respond immediately to any risks that emerge

D.Recruit a Director of Risk, who will lead risk management procedures.

E.Create a risk management team that will take responsibility for identifying and mitigating risk

F.Identify risk as an element of HGY's overall strategy.

P3 Exam Question 68

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.

P3 Exam Question 69

The list below has duties performed by risk managers and internal auditors. Show who would carry out the duties assuming the company has both risk managers and internal auditors.