Free CIMA CIMAPRA19-P03-1-ENG Exam Questions
Absolute Free CIMAPRA19-P03-1-ENG Exam Practice for Comprehensive Preparation
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CIMA CIMAPRA19-P03-1-ENG Exam Questions
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Provided By: CIMA
- Exam: P3 Risk Management (Online)
- Certification: CIMA Professional Qualification
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Total Questions: 276
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Updated On: Apr 03, 2026
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Rated: 4.9 |
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Online Users: 552
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Question 1
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An electricity company owns and operates a nuclear power station located ten miles from a large city. A recent and very extensive engineering examination of the power station concludes with the estimate that the probability of a major nuclear disaster within the next 20 years is 0.2%.
Which of the following best explains the relevance of quantifying the risk in that way?
Answer: A
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An electricity company owns and operates a nuclear power station located ten miles from a large city. A recent and very extensive engineering examination of the power station concludes with the estimate that the probability of a major nuclear disaster within the next 20 years is 0.2%.
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Question 2
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Which method of quantifying risk exposure can be used to calculate the maximum loss on a portfolio occurring within a period of time with a given probability?
Answer: D
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Which method of quantifying risk exposure can be used to calculate the maximum loss on a portfolio occurring within a period of time with a given probability?
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Question 3
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M, a manufacturing company, has had some problems with defects in one of the main productsitproduces. This product has been made by the company for many years and is very profitable. Last monthithad over 300 defects reported by customers which is more than 15% of products sold. This is a reputation risk for M and is also affecting profitability
Which of the following controls could M introduce to reduce defects and also increase profitability?
Answer: A,B,D
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M, a manufacturing company, has had some problems with defects in one of the main productsitproduces. This product has been made by the company for many years and is very profitable. Last monthithad over 300 defects reported by customers which is more than 15% of products sold. This is a reputation risk for M and is also affecting profitability
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Question 4
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D plc is a public relations company. Shares in D plc have recently been listed on the UK stock exchange.
D plc has an internal audit department that reports to the Chief Executive Officer (CEO). The CEO is considering outsourcing internal audit to an audit firm, whichwould not be the firm that conducts D plc's external audit.
Identify THREE advantages to D plc of outsourcing internal audit in this way.
Answer: A,D
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D plc is a public relations company. Shares in D plc have recently been listed on the UK stock exchange.
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Question 5
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R plc is considering an investment of $1,100,000 in a new machine which is expected to have substantial cash inflows over the next five years.
The annual cash flows from this investment and their probability are shown below:
Annual cash flow ($)Probability
200,000 0.4
280,000 0.5
350,000 0.1
At the end of its five-year life, the asset is expected to sell for $100,000. The cost of capital is 5%.
What is the Expected Net Present Value?
Give your answer to the nearest whole $.
Answer:
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R plc is considering an investment of $1,100,000 in a new machine which is expected to have substantial cash inflows over the next five years.