CIMA Exam CIMAPRO19-P03-1 Topic 7 Question 84 Discussion

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

Question #: 84
Topic #: 7

[All CIMAPRO19-P03-1 Questions]

Which of the following statements are true of residual risk?

AResidual risk has to be accepted.

BResidual risk is the risk that remains after risk mitigation has taken place.

CIf residual risk is too great then the company should not expose itself to the risk situation.

DResidual risk may be accepted if management feels the companycan bear the risk.

EResidual risk should never be accepted.

Show Suggested Answer

Suggested Answer: B, C, E

by Leonora at Dec 10, 2024, 08:07 AM

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Salina

3 days ago

Haha, if residual risk is never accepted, then I guess companies should just pack up and go home, right? B and D are the clear winners here.

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Fidelia

6 days ago

I'm going with B and D as well. Residual risk has to be managed, not necessarily avoided at all costs. A and E feel a bit too black and white.

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Paris

12 days ago

Well, B and D sound about right to me. Residual risk is what's left after mitigation, and sometimes it's worth accepting if the company can handle it. The others seem a bit too extreme.

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Tracie

14 days ago

I'm not sure about that. I think the answer could also be D) Residual risk may be accepted if management feels the company can bear the risk.

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Ronny

19 days ago

I agree with you, Mireya. Residual risk has to be accepted, so it makes sense that it's the risk that remains after mitigation.

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Mireya

24 days ago

I think the answer is B) Residual risk is the risk that remains after risk mitigation has taken place.

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