Most Recent CIMAPRO19-P03-1 Exam Dumps

Prepare for the CIMA P3 Risk Management exam with our extensive collection of questions and answers. These practice Q&A are updated according to the latest syllabus, providing you with the tools needed to review and test your knowledge.

QA4Exam focus on the latest syllabus and exam objectives, our practice Q&A are designed to help you identify key topics and solidify your understanding. By focusing on the core curriculum, These Questions & Answers helps you cover all the essential topics, ensuring you're well-prepared for every section of the exam. Each question comes with a detailed explanation, offering valuable insights and helping you to learn from your mistakes. Whether you're looking to assess your progress or dive deeper into complex topics, our updated Q&A will provide the support you need to confidently approach the CIMAPRO19-P03-1 exam and achieve success.

The questions for CIMAPRO19-P03-1 were last updated on Feb 18, 2025.

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Question No. 1

A project has been evaluated on the basis that it will cost $22 million and will have a net present value of $4.3 million The project has commenced and $5 millionof the $22 million has been invested. A problem has been discovered that will cost an additional $4.5 million to rectify. The $4.5 million will be payable immediately. What is theNPV of continuing with this project?

A-$5million

B-$0.2million

C$1million

D$4.8million

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Correct Answer: D

Question No. 2

Will owns $400,000 of shares in Company X.

Company X has a daily volatility of 1% of its share price.

Calculate the 28 day value at risk that shows the most Will can expect to lose during a 28 day period.

(Will wishes to be 90% certain that the actual loss in any month will be less than your predicted figure).

Give your answer to the nearest $000.

A$27

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Correct Answer: A

Question No. 3

H is a departmental manager in a private college. The main measure of performance used to assess the Department Manager's effectiveness is meeting the collegebudgets. The budget for each year isbased on the actual expenditure of the previous year adjusted for specific one-off items.

Which of the following would arise from usingthemeetingofthis type ofbudget as a performancemeasurement?

ACost overruns because managers might fail to meet their budgets.

BManagers taking on new projects that have too much risk attached to them.

CManagers engaging in unnecessary spending in order to avoid having their budgets reduced the following year.

DManagement of various departments not cooperating sufficiently with each other because each is very concerned that to do so would incur extra costs against their budgets.

EManagement refusing to provide some necessary service to students (for example, extra tutorials) because it would cause their budget not to be met.

FManagement taking more than the optimal number of students into their department.

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Correct Answer: C, D, E

Question No. 4

YUI owns 18 factories, which are spread around the country. Each factory employs 500-700 production staff and has its own administrative and accounts departments.

It has recently been discovered that the manager in charge of YUI's Hightown factory has been overstating his personal expenses claims for the past five years. The total amount stolen in this manner has been estimated at $10,000.

Why would it have been relatively difficult to have prevented this fraud?

ASenior members of management can often override controls.

BIt is impossible for anybody to check expenses claims submitted by a senior manager.

CManagers are generally highly intelligent and are generally capable of designing ways to defeat control systems.

DInternal controls cannot address fraud, only error.

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Correct Answer: A

Question No. 5

KLO is a major quoted car rental company The company is considering publishing its first cyber risk management report

AH rental bookings are made online Customers receive a booking reference number that they use to collect their cars from a convenient branch Customers enter their credit card details both so that KLO can take payment for their rental and also so that the customers can be charged automatically for late returns or damage to cars

KLO's management believes that it has three key areas of cyber risk Cyber criminals may wish to make bookings using fictitious data in order to steal KLO's cars, they may wish to use customers details to identify addresses of people who are away from home so that they can burgle houses and they may wish to abuse customer credit card details

KLO's Board is concerned that admitting to the nsk of stealing cars might encourage cnminals to exploit that vulnerability AJso. it is concerned that customers will be reluctant to rent cars if that would mean that their homes could be at risk of burglary while they are away The vulnerability of credit card details seems obvious and so the Board is not reluctant to admit to that.

Which TWO of the following are correct?

AThe Board should be clear about all sensitive information that the company holds, but should also be clear about the robust controls in place to safeguard that information.

BIf KLO's Board omits one of more areas of concern from the report then the independent accountant who will sign the report is unlikely to discover that omission

CThe independent accountant who will express an opinion on the risks and controls will be unwilling to sign the report unless it contains a full account of all risks and controls

DThe independent accountant's report on KLO's cyber risk management will refer only to those vulnerabilities that have been identified by KLO's Board

EStakeholders will not care about the vulnerabilities faced by KLO provided the independent accountant can confirm that the company has sound systems in place

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Correct Answer: A, C

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