What is the CIMAPRA19-P03-1 certification exam?

The CIMAPRA19-P03-1 is CIMA's P3 Risk Management (Online) certification exam, which is part of the CIMA Professional qualification pathway. This exam tests candidates' knowledge of risk management principles, frameworks, and their application in organizational contexts.

How long is the P3 Risk Management exam and what is the time limit?

The P3 Risk Management exam is typically 3 hours long and consists of scenario-based questions that test both technical knowledge and practical application. Candidates must complete all sections within the allocated time frame.

What topics are covered in the CIMAPRA19-P03-1 exam?

The exam covers key risk management topics including risk identification, assessment, response, and monitoring, as well as governance frameworks, stakeholder management, and strategic risk considerations. It also includes practical applications of risk management in real-world business scenarios.

Is the CIMAPRA19-P03-1 exam computer-based or paper-based?

As indicated by the 'Online' designation in the exam name, the CIMAPRA19-P03-1 is a computer-based online examination. Candidates take the exam on a computer in a proctored testing environment.

What is the pass mark for the P3 Risk Management exam?

CIMA typically requires candidates to achieve a minimum score of 50% to pass the P3 Risk Management exam. However, candidates should verify the current passing requirements with CIMA directly, as these may be subject to change.

Free CIMAPRA19-P03-1 Exam Questions

Q1 MultipleChoice

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?

AValue at Risk

BRegression analysis

CSimulation

DExpected value

Correct Answer: D

Q2 MultipleChoice

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?

AThere is no acceptable level of risk for a major nuclear accident and so the probability has little information value in itself.

BThe probability is so low as to be ignored.

CThe directors will be able to argue that they were not negligent in the event of a major disaster within the 20 year period.

DThe calculation of a precise probability demonstrates that the engineers who conducted the inspection are experts in their field.

Correct Answer: A

Q3 MultipleChoice

Company M has lost 25% of its revenue in the last three months due to bad debts. One of thereceivables written offwasfroma long standing customer and the other three werefromnew customers. The management accountant has warned the sales team that the company cannot survive any more substantial bad debts.

Which of the following internal controls should be put in place to try and prevent further bad debts?

AA credit check should be carried out on each new customer.

BCredit limits should be set for all customers. However, if the credit limit will cost a sale then sales staff can override this limit.

CTwo sales staff must authorise new customers and sign a form stating that they have done so.

DAn aged analysis of customer balances must be reviewed every month.

EAs soon as a customer payment is overdue they should not be allowed to purchase more until their balance has been reduced.

Correct Answer: A, D, E

Q4 MultipleChoice

The safety guard on a piece of equipment was broken. The factory manager suspended an operator who refused to operate the equipment until it was repaired.The factory manager paid another operator a bonus for operating the damaged equipment until the safety guard could be repaired.

What does this incident say about the control environment within that factory?

AManagement is not particularly concerned with managing risks.

BEmployees will perceive that management does not care about health and safety risks.

CThis factory's safety record is likely to be poor.

DEmployees are motivated to maintain productivity.

EManagement has a proportionate and considered attitude towards risk.

Correct Answer: A, B, C

Q5 MultipleChoice

The internal audit department has just completed an investigation into the HR department's procedures relating to new staff appointments The head of HR is unhappy with the draft report prepared by the lead internal auditor The report lists several cases in which appointments were made despite the fact that one or more of the entity's formal procedures were not followed

The head of HR has complained that the internal auditor's comments do not allow for the fact that the HR department's staff members are often very busy and do not always have time to conduct every check.

The internal auditor's comments also reflect a failure to complete documents None of the omissions have led to the appointment of an unsuitable member of staff

Which TWO of the following statements reflect an appropriate response by the board of directors to this report?

AIgnoring a compliance error altogether may undermine the control environment

BThe procedures should be removed if the HR department staff believe that they are unnecessary

CThe board should be seen to support the internal audit

DThe errors are immaterial because they did not lead to an inappropriate appointment

EThe members of staff responsible for these omissions should be subjected to disciplinary action

Correct Answer: C, E

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