CIMA Exam CIMAPRO19-P03-1 Topic 3 Question 90 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 90
Topic #: 3

K is a large mining company. Initsrisk reportitstates that there is a risk of accidents and injury because of the nature of the industry. Itstates thatithasstaff training in place and complieswith allHealth and Safety regulations but in spite of this there will still be a residual risk that accidents and injuries may occur.

Which of the followingstatements are correct?

AThe shareholders should not invest because there is still a residualrisk.

BThe directors are avoiding their responsibilities by saying there is a residual risk.

CSome risks cannot be eliminated.

DAccepting a residual risk does not imply the company is reckless.

EMost companies in this industry will say something similar in their risk report.

Show Suggested Answer

Suggested Answer: C, D, E

by Kasandra at Apr 04, 2025, 04:56 PM

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Gaston

28 days ago

Ha! I bet the shareholders would still invest even if there was a 'Godzilla-sized' residual risk. As long as the money's good, right?

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1 months ago

D seems like the best choice to me. Accepting residual risk doesn't mean the company is being reckless, it's just being realistic.

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Sheron

6 days ago

I agree, D is the best choice. It's important to acknowledge that some risks cannot be completely eliminated.

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2 months ago

Hmm, I think C is the correct answer. Some risks can never be fully eliminated, especially in high-risk industries like mining.

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Hershel

1 days ago

C) Some risks cannot be eliminated.

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Dahlia

1 months ago

A) The shareholders should not invest because there is still a residual risk.

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Denna

2 months ago

I think statement C is correct. Some risks cannot be eliminated.

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