Pass P3 Exam - Real Test Engine PDF with 268 Questions [Q71-Q92]

June 3, 2022 P3, CIMA 0 Comments

Pass P3 Exam – Real Test Engine PDF with 268 Questions [Q71-Q92]

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Pass P3 Exam – Real Test Engine PDF with 268 Questions

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Learning Concepts of CIMA P3: Risk Management Exam

The CIMA P3 Risk Management Exam is a test that will allow you to analyze all risks involved in the company. The professionals who are responsible for this management don’t only focus on financial risks, but they also pay attention to operational risk, information technology risks, and legal risks. On the exam, there are 6 questions related to this subject. There are 3 different exercises that are designed to reveal whether you have a basic or advanced knowledge of this subject. CIMA P3 Dumps will help you to take the certification exam and get your CIMA P3: Risk Management Certification.

NEW QUESTION 71
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.

NEW QUESTION 72
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?

To look for weaknesses in other peoples’ systems

To look for solutions in response to threats.

To look for signs that BCD’s system has been breached

To look for weaknesses in BCD’s cyber security system.

NEW QUESTION 73
Internal controls are designed to provide reasonable assurance of which of the following?

Material errors will be prevented or detected in a reasonable time period by employees in the course of carrying out their job

Management’s plans have not been circumvented by collusion

Management procedures and processes are properly evaluated

The internal auditing department’s oversight of management’s performance is achieved economically and efficiently

NEW QUESTION 74
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?

NEW QUESTION 75
Move the category of risk to the box beside the risk description it best matches.

NEW QUESTION 76
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?

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

Without a Chair to report to, Jo might pressurise the other directors into action that could damage JIS.

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.

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

There should be a division of responsibilities between the CEO running the Board and the Chair running the company’s business

NEW QUESTION 77
Amber selects appropriate suppliers and places purchase orders.
Brian passes invoices for payment and submits payment instructions to the bank.
Chris checks incoming inventory and unpacks goods from their containers.
Dirwan posts purchase invoices and files invoices and supporting documents.
Which member of staff could most easily commit fraud?

Amber

Brian

Chris

Dirwan

NEW QUESTION 78
An oil company has entered into a joint venture with a competing oil company to develop a new oil field. The joint venture arrangement is intended to mitigate the risks associated with developing the oil field.
The following disclosure appears in the oil company’s risk report:
“Many of our large projects and operations are conducted through joint ventures. These arrangements involve complex risk allocation and indemnification arrangements and we have less control over these activities than we would have if we had full ownership and control. Our partners may have economic or business interests that are opposed to ours, and may exercise the right to block key decisions or actions. We believe the joint arrangement is in our best interest.” Which of the following statements are correct?

The risk report means that the shareholders know exactly how bad the risk is.

The risk report says nothing useful about the risk.

Now the shareholders know the directors are aware of the risk.

If the risk report had not reported the risk the shareholders might not have been aware of the risk.

The shareholders now have more useful information.

NEW QUESTION 79
CDE an online ticket sales agent, has unwittingly become an accomplice in cyber crime and is suffering attacks on its own business as a result CDE’s website was poorly designed and cyber-attackers have managed to inject the site with malware, so that it collects all of CDE’s customer log-in information and enables the cyber-attackers to retrieve it.
The cyber-attackers subsequently use this information to set up Botnet agents in the customers’ devices which are then used in a Distributed Denial of Service (DDoS) attack whenever very popular tickets are being placed on sale such as international football matches.
The cyber-attackers secure access to a single portal on the site and buy multiple tickets for subsequent sale on the black market while the DDoS causes all other portals to be overloaded preventing real fans acquiring the tickets at face value.
Which TWO of the following apply in this scenario?

CDE customers will turn to other ticket sources for their tickets

CDE is likely to face significant fines for the breach.

CDE is likely to lose the ticket franchise for international football events

CDE will need to implement a new firewall to prevent this type of attack.

CDE will remain just as profitable selling to the black market as to real fans

NEW QUESTION 80
Which TWO of the following are benefits of carrying out a post-completion audit of capital projects?

A post-completion audit can help find out who was to blame for a project exceeding the budget.

A post-completion audit can help management understand what went wrong with a project in order to try and prevent the same problem occurring in the future.

A post-completion audit can help find out where a project went wrong so it can be fixed immediately.

A post-completion audit can investigate variances from the budget on completed projects.

NEW QUESTION 81
The long-term prospects for inflation in the UK and the USA are 2% and 6% per annum respectively.
The GBP/USD spot rate is currently GBP/USD1.71.
Using purchasing power parity theory, what GBP/USD spot rate would you expect to see in three months’ time?

GBP/USD1.69

GBP/USD1.73

GBP/USD1.77

GBP/USD1.65

NEW QUESTION 82
Select the most appropriate level of responsibility for managing each of the following risks.

NEW QUESTION 83
M plc is an IT company that bids for large contracts to sell computer systems and also to service existing systems. M plc’s senior management has always set budgets which are hard to achieve and have made no allowances for the recession.
The economy has improved and M plc’s senior managers have made the budget even more optimistic. The budgeted sales target has been increased by 40%.
In the past, sales staff have not tried to achieve the budget sales because it was generally believed that the targets were impossible to reach.
M plc has recently appointed a new Sales Director who has decided that sales staff will be dismissed if they fail to meet sales targets for three successive months. He is also looking for higher sales margins than were achieved before.
What are the likely consequences of the new Sales Director’s policy?

Sales staff will be happier in their jobs.

Sales staff will tender for riskier contracts.

Sales staff will encroach on other sales staff territories to get more work.

Sales staff will look for new jobs.

Sales staff will feel more settled and secure in their jobs.

NEW QUESTION 84
H sells machinery and also associated services, such as advice and repairs. H’s industry is going through considerable transformation.
Classify each of the examples of information available to H’s management as strategic, operational or of having little value.

NEW QUESTION 85
A government department is conducting a value for money audit on a school.
The school’s pupils sit leaving exams. Classify each of the audit tests as either economy and efficiency or effectiveness.

NEW QUESTION 86
G plc has decided to move its production plant to overseas Country A.
This would make the product cheaper to produce. The technology used to make the product is very advanced and some of the staff would have to move to Country A.
The Production Director has identified that there are some political risks in moving to Country A.
Match the methods of reducing the political risks associated with the move to Country A with the corresponding risks.

NEW QUESTION 87
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.

NEW QUESTION 88
A consultancy firm has many overseas clients The firm’s staff are responsible for booking travel and accommodation through an independent travel agent who invoices the firm. There are strict rules governing bookings Staff at all levels must book economy class airfares unless the scheduled flight time is greater than eight hours, in which case they can book a business class seat Hotel accommodation should cost less than $300 per night One of the firm’s directors is visiting the consultancy team responsible for a large overseas project The director flew business class, even though the flight took only five hours The director is booked into an executive suite at an expensive hotel at a cost of $900 per night Which TWO of the following statements concerning the director’s behavior are correct?

Directors are not required to adhere to company policies in the same manner as more junior staff

The travel agent’s invoice should be queried by the consultancy’s administrative staff.

Staff may be encouraged to book more expensive flights and accommodation in the future

In future, all staff should be permitted to fly business class and use more luxunous hotels

Only the staff engaged on this project will be aware of the director’s behavior

NEW QUESTION 89
The long-term prospects for interest rates in the UK and the USA are 2% and 6% per annum respectively.
The GBP/USD spot rate is currently GBP/USD1.71.
Using interest rate parity theory, what GBP/USD spot rate would you expect to see in six months’ time?

GBP/USD = 1.74

GBP/USD = 1.78

GBP/USD = 1.65

GBP/USD = 1.67

NEW QUESTION 90
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.

NEW QUESTION 91
N, a large company in the food production industry, has grown over the years by the acquisition of several smaller rivals. The company has ten branches located in its home country and has just opened a foreign branch for the first time. It has recently made some changes to the structure and implementation of its control system.
Which TWO of these would be most likely to improve the overall control system?

Establishing an Internal Audit department.

Purchase invoices are now approved for payment at branches and a list of approved invoices are sent to head office for payment. The invoices, supporting documentation and suppliers’ statements are retained at the branches.

Excess funds are now invested, by the Finance Director, in short-term securities. The Finance Director initiates buy and sell transactions and she also receives and retains all correspondence relating to the investments.

A policy has been initiated to complete a physical inventory of all non-current assets at least annually.
This is then reconciled with the non-current asset register.

N has just opened a bank account in the currency in which the newly opened branch is now operating.

NEW QUESTION 92
WTW is a global company which produces high-tech equipment such as smart televisions and mobile phones The CFO has just resigned, having been offered a post at a competitor The CFO was well regarded and WTWs share price has fallen in response to the announcement At a board meeting the production director commented that the share price fall is the fault of the nomination committee Which THREE of the following statements are correct?

The nomination committee should prepare a description of the role and capabilities required for the CFO’s replacement

If the nomination committee had been working effectively the CFO would not have resigned

When planning the CFO’s replacement the nominations committee should consider the diversity of the board

The nomination committee should have considered succession planning for directors before the CFO resigned

Most of the members of the nomination committee should be executive directors as they are responsible for ensuring the share price recovers quickly.