Cima pass4test p3 Premium Exam Questions by Anton q271 vce pdf

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Exam Name:	Risk Management
Exam Code:	P3 Dumps
Vendor:	CIMA	Certification:	CIMA Strategic
Questions:	339 Q&A's	Shared By:	anton

Question 28

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, which would not be the firm that conducts D plc's external audit.

Identify THREE advantages to D plc of outsourcing internal audit in this way.

Options:

Doing so may improve independence.

Decisions relating to internal audit can be based solely on cost.

Internal audit will have a better understanding of D plc's objectives and culture.

Specialist skills may be more readily available.

Risk of staff turnover is passed to the outsource company.

Discussion

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Question 29

Which TWO of the following scenarios should be considered in strategic scenario planning by a publishing company that specialises in academic textbooks?

Options:

There could be a change in the technology used by consumers, such as smaller mobile phones with smaller screens

Budget changes could have an impact on the funding available to college and university libraries

The terms offered by media companies for film rights for books could change

The quality of output from printing presses might improve

Environmental concerns could lead to a decrease in the availability of trees to make paper

Discussion

Question 30

HJK is a publishing company that employs several hundred staff A member of the company's IT Security Department contacted 30 members of HJK's staff selected at random, and told each one that his or her computer appeared to be infected with a virus The staff members were asked to provide their login details and corporate passwords so that IT Security could remove the virus remotely A total of six members of staff provided this information.

Which TWO of the following statements are correct?

Options:

HJK's entire staff should be informed of the investigation and of the disappointing fact that six members of staff handed over their logins and passwords

The investigation should be repeated in the future on a different sample of staff, using other reasons for asking for logins and passwords

HJK's response should be limited to briefing the six staff members on their error and ensuring that they change their passwords.

It was acceptable for the staff to surrender their details because the request had actually been made by members of HJK's IT Security Department.

It was unethical for HJK's IT Security Department to contact staff in this manner, lying about the suspected presence of a virus in order to provoke a response.

Discussion

Question 31

ERT is choosing between two maintenance policies for its vehicles. The outcomes of these policies are difficult to predict and so ERT has run a simu-lation of both.

Policy 1 has an expected annual cost of $400,000 per year, with a standard deviation of $80,000.

Policy 2 has an expected value of $350,000, with a standard deviation of $150,000.

Which of the following statements are correct?

Options:

Policy 2 is the more risky.

Policy 1 will always be the more expensive in any given period.

Policy 2 is the more likely to cost more than $500,000 in any given year.

Policy 2 has the greater potential upside risk.

Policy 2 is clearly the better policy.

Discussion

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