2023 Correct and Up-to-date CIMA P3 BrainDumps
Current P3 dumps Preparation through Our Practice Test
The CIMA P3 exam is a comprehensive assessment of a candidate's ability to manage risk in a business environment. It requires a deep understanding of risk management principles and practices, as well as the ability to apply this knowledge in real-world scenarios. Candidates must not only demonstrate their knowledge of risk management theory, but also their ability to analyze complex situations and make informed decisions. The exam is a combination of multiple choice questions and case studies, which require candidates to apply their knowledge in practical situations.
NEW QUESTION # 99
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. Economic risk
- B. Business risk
- C. Financial risk
- D. Political risk
Answer: A,D
NEW QUESTION # 100
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 # 101
Which TWO of the following are NOT methods used for risk identification?
- A. Designing a process to deal with complaints
- B. Brainstorming ideas with colleagues from different disciplines within the business
- C. Carrying out interviews on key members of staff
- D. Accounting for waste in a manufacturing process
- E. Employing external advisors with specialist knowledge
Answer: A,B
NEW QUESTION # 102
UJK manufactures garden machinery. The company is dependent upon another manufacturer for the motors that power its products.
One of the factors that is being considered in a stress test requested by UJK's Board is the possibility that the motor manufacturer increases its selling prices by 10% The motor accounts for a significant proportion of the overall manufacturing cost of UJK's products Which of the following are correct?
- A. The possibility of an increase in selling prices due to increased costs should be noted in the stress test report
- B. The motor manufacturer should be contacted and told that a substantial increase in selling prices would have a drastic impact on UJK
- C. UJK should estimate the impact on demand of increasing selling prices to pass on the increased cost of the motors.
- D. The impact of absorbing the increased cost of motors on UJK's profits should be calculated.
- E. UJK should identify an alternative vendor of suitable motors as part of its stress test
Answer: C,D
NEW QUESTION # 103
Why is it potentially useful for an organisation to maintain a risk register?
- A. To ensure that there are no undiscovered risks.
- B. To provide the risk manager with a role.
- C. To ensure that recognised risks are adequately managed.
- D. To eliminate all recognised risks.
Answer: C
NEW QUESTION # 104
Y plc, a pharmaceutical company, has dealt with a number of risks in the manner indicated below.
Use the TARA framework to classify each of Y plc's responses.
Answer:
Explanation:
NEW QUESTION # 105
Rio owns an architects business which employs 12 skilled architects and four administrative staff.
The Office Manager has just attended a workshop on internal controls and the way in which they can improve organisations. He intends to implement some internal controls as soon as possible.
What are the limitations of an internal control system in Rio's business?
- A. Internal controls will usually mean hiring more staff.
- B. Employees could ignore the internal controls.
- C. Internal controls are only suitable for large businesses.
- D. If Rio does not support the internal control system then the controls may not be adhered to.
- E. Internal controls may slow down the speed with which the architects can respond to enquiries.
Answer: B,D,E
NEW QUESTION # 106
P is a consulting firm that provides technical advice to the oil industry. The company has consulting teams that specialise in specific areas, namely drilling, off-shore, health and safety, oil well management and ng management. Each team's consultants are charged out to clients at the same daily rate.
The demand for different skill sets varies constantly due to factors such as movements in oil prices.
Exploration increases when the oil price rises and there is a greater focus on maintaining existing wells when the price fans.
The performance of P's sales team is measured in terms of revenue, based on the number of consultancy days sold Frequently the sales team agree to contracts without first checking that the relevant consulting team has consultants available. The work then has to be undertaken by subcontractors at P's expense. Sub-contractors cost more and their use can also lead to P's own consultants being under-utilised when assignments could have been scheduled more efficiently.
Which TWO of the following would correct this behavior?
- A. Award additional incentives for selling P's own staff
- B. Reduce the number of consultants within P's teams.
- C. Allow P's consultants to go out on any job, regardless of specialism.
- D. Employ the sub-contractor stall as lull time P employees.
- E. Measure the performance of P's sales team on margin contribution rather than revenue.
Answer: A,E
NEW QUESTION # 107
Select the most appropriate level of responsibility for managing each of the following risks.
Answer:
Explanation:
NEW QUESTION # 108
A large department store has just discovered that the staff in the store coffee shop have been defrauding the company for the past three years. The six employees who work in the coffee shop have been keeping a proportion of the cash takings, concealing the theft by not recording all sales up in the till They shared the proceeds of this fraud between them The fraud was only uncovered when one of the employees left and his replacement reported the theft to management rather than becoming involved in the crime Which of the following best describes the role of the store's internal controls in the context of this fraud?
- A. The store's board of directors should face disciplinary action for failing to prevent this fraud
- B. This fraud indicates that there are serious shortcomings in the store's system of internal controls
- C. Even a well-designed system can be overridden by collusion between employees
- D. The coffee shop should be closed down because it is impossible to control its revenues.
Answer: C
NEW QUESTION # 109
SDF is a quoted company. Which of the following matters should normally be dealt with by SDF's audit committee?
- A. The external auditor has identified a material error, due to a clear miscalculation, in the draft financial statements.
- B. The external auditor is concerned that an accounting policy selected by the Finance Director does not comply with the spirit of the relevant accounting standard.
- C. The external auditor has requested a higher fee than normal for the forthcoming financial year because new legislation will require additional audit work.
- D. The Head of Internal Audit is concerned that a recent internal audit investigation may have revealed serious compliance failures.
- E. The Finance Director will be retiring within the next year and a replacement will have to be found.
Answer: B,C,D
NEW QUESTION # 110
C Ltd is a private, family-owned company which is hoping to become listed on a recognised Stock Exchange within the next two years. At the moment, the Board of Directors comprises five directors; four of whom are from the founding family and all of whom are involved in the day-to-day running of the business. The remaining director obtained a seat on the Board three years ago as a condition of an investment by a venture capital fund.
The Board meets in half-day sessions once a fortnight and the Board meetings are reasonably well run. All decisions are taken by the Board as a whole. There are no sub-committees.
Which of the following steps would it be appropriate for C Ltd to take in the light of the proposed listing?
- A. Ensure that the current executive directors are given 10 year contracts starting on the day the company is floated, to ensure consistency and continuity in the management of the company.
- B. Appoint one of the NEDs as Chair of the Board.
- C. Set up an "agenda setting" sub-committee consisting of the current executive directors to decide the agenda for each Board meeting.
- D. Appoint enough independent non-executive directors (NEDs) that they make up at least 50% of the Board.
- E. Insist that the venture capital company director be removed as he is not necessarily motivated to act in the best interests of C Ltd.
- F. Set up at least three sub-committees namely remuneration, nomination, and audit committees.
Answer: B,D,F
NEW QUESTION # 111
Jo is a well known entrepreneur who founded JIS. a global producer or high technology equipment JIS has grown rapidly and was listed two years ago JIS's share price has grown steadily since its listing Jo serves as both CEO and Chair A recent newspaper article has suggested that JIS would benefit from having a separate CEO and Chair Which TWO of the following arguments are valid?
- A. There should be a division of responsibilities between the CEO running the Board and the Chair running the company's business
- B. If Jo remains as Chair and a new CEO is appointed then Jo will remain responsible for implementing policies to execute the Board's strategy
- C. If Jo remains as CEO and a new Chair is appointed then Jo should still attend alt meetings between non-executive directors and the Chair.
- D. Without a Chair to report to, Jo might pressurise the other directors into action that could damage JIS.
- E. Jo's setving as both Chair and CEO gives clarity of leadership and means JIS benefits from Jo's skills and knowledge of the company
Answer: A,D
NEW QUESTION # 112
Move the category of risk to the box beside the risk description it best matches.
Answer:
Explanation:
NEW QUESTION # 113
FBK produces motorbikes for the high end sports market. The company has recently developed a bike that uses a powerful electric motor instead of a petrol engine.
Which of the following are product risks?
Select ALL that apply.
- A. The risk that FBK cannot afford to finance the working capital associated with the launch
- B. The risk that a bike powered by a quiet electric motor will not create the thrilling engine noise that is prized by traditional riders.
- C. The risk that the silent running of the bike will create a hazard to pedestrians.
- D. The risk that the different characteristics of an electric engine will make the bike difficult to control
- E. The risk that demand for the bike will exceed production capacity
Answer: A,C
NEW QUESTION # 114
A publicly funded hospital has put various features in place in an attempt to improve strategic control and create an improved control environment.
Which TWO of the following features are most likely to meet this objective?
- A. An Audit Committee consisting of five independent persons with expertise in finance, human resources, and medicine.
- B. A strict policy of capping the maximum salary payable to any employee at 110% of the average earned by that category of employee in the country in which the hospital is located.
- C. Ensuring that the Head of Internal Audit examines and authorises all expense claims by hospital staff.
- D. Ensuring that all medical staff are aware that their first priority should be to discharge patients as quickly as possible at all times so as to minimise wasting hospital resources.
- E. The setting up of a Risk Management Committee to examine the strategic risks applicable to the entity and to formally report on a quarterly basis.
Answer: A,E
NEW QUESTION # 115
The internal audit department should always give a report at the end of its audit. This report is intended to be useful and help the company going forward. The report should always include any recommendations for improvements. Which of the following statements are true and which are false?
Answer:
Explanation:
NEW QUESTION # 116
A's directors do not believe that they always get value for money from their investment in capital projects.
Over the past decade the company has invested in 55 projects that have cost more than $1m. They are considering introducing a system of post completion audit to see if this will help them to understand any problems they have had with projects in the past. They hope to use the results of the post completion audits to significantly improve the results of their capital investments State whether you agree or disagree with the points raised by A's directors.
Answer:
Explanation:
NEW QUESTION # 117
B is a family run security company with a number of prestigious clients who rely on it to maintain online access to their CCTV and alarm systems and respond to any detected intrusions or malfunctions.
It designs and installs security systems for a number of UHNW (Ultra High Net Worth) individuals who may have several seasonal and city residences largely unoccupied for many months of the year.
B's reputation as 100% secure is crucial to its on-going success in this very specialised marketplace.
Select THREE factors which should be given prominence in B's fraud risk management strategy.
- A. B should inform clients that they have a stringent anti-fraud policy.
- B. B should have an active whistle-blower policy whereby all staff are encouraged by positive reward to report any suspicions they may have about other employees.
- C. B Should revise and publish their fraud policy document to employees every three months, highlighting any new elements and industry developments.
- D. B should ask new employees to fill in a declaration that they are honest and have no criminal convictions for dishonesty. That can be filed as evidence that the company took this precaution.
- E. B should ensure that employees who design or install security systems are not involved with the operation of those systems once implemented.
- F. B should carry out background security, health and financial checks on all employees, their immediate family members and associates on an annual basis.
Answer: B,C,F
NEW QUESTION # 118
Smalltown had a problem with people parking cars on the town's mam shopping streets instead of in the nearby car parks The parked cars created congestion and made it difficult for delivery vehicles to unload Smalltown's local government had employed traffic wardens to enforce parking regulations by issuing parking fines to motorists who parked for more than the permitted 30 minutes.
The local government took further action to deal with this problem It banned parking on the busiest streets, it introduced parking charges in the remaining streets and it made it free to park m the town's car parks for up to two hours Fewer people now park cars on the streets because of the charges, but those who do generate significant revenues for the local government Fewer traffic wardens are required and so wage costs have reduced The local goverment auditors have decided to carry out a value for money audit of the parking system Which of the following is a measure of effectiveness?
- A. Parking enforcement costs less than before
- B. The main shopping streets are no longer congested
- C. Revenues from parking have increased
- D. The remaining traffic wardens are less stressed because they no longer receive abuse by motorists.
Answer: B
NEW QUESTION # 119
Which of the following is an ethical dilemma?
- A. A company is considering giving poorly-paid staff a generous pay rise.
- B. 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.
- C. A company is deciding whether to issue debt or equity.
- D. A company is deciding whether to make a substantial bonus payment to its directors by means of cash or shares.
Answer: A
NEW QUESTION # 120
JKL makes large export sales to customers in country X, whose currency fluctuates significantly against JKL's home currency JKL also makes large purchases from suppliers in countrrOC All of these transactions are in country X's currency JKL's treasurer does not actively hedge currency risks because there is a natural hedge in place due to the company making both sales and purchases in the same currency JKL's board has instructed the treasurer to put active hedging measures in place because the risk report would otherwise have to disclose the fact that JKL has a currency risk which is not actively hedged Which of the following statements are correct? Select ALL that apply.
- A. The board may be concerned it will be criticised if it does not hedge
- B. Risk reporting is a bad thing
- C. The board does not want to be blamed for ignoring a risk.
- D. Risk reporting drives the whole risk management process
- E. Risk reports can change behaviour
Answer: A,C,E
NEW QUESTION # 121
......
The CIMA P3 (Risk Management) Certification Exam is a valuable certification for professionals who want to develop their risk management skills and obtain recognition for their expertise. It is a globally recognized certification that covers various topics related to risk management and is suitable for professionals who have experience in risk management, finance, or accounting. The exam is structured in two parts and is designed to test a candidate's ability to apply risk management concepts to real-life scenarios.
The CIMA P3 exam covers a wide range of topics related to risk management, including risk identification, assessment, and response. It also explores the role of risk management in strategic planning and decision-making. The exam is designed to test candidates' ability to apply risk management concepts and techniques in real-world scenarios, making it a valuable credential for professionals seeking to advance their careers in management accounting.
100% Reliable Microsoft P3 Exam Dumps Test Pdf Exam Material: https://pass4sure.verifieddumps.com/P3-valid-exam-braindumps.html
