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CIMA P3 Exam With Confidence Using Practice Dumps

Exam Code:
P3
Exam Name:
Risk Management
Certification:
Vendor:
Questions:
339
Last Updated:
Jul 4, 2026
Exam Status:
Stable
CIMA P3

P3: CIMA Strategic Exam 2025 Study Guide Pdf and Test Engine

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Risk Management Questions and Answers

Question 1

Rio owns an architects business which employs 12 skilled architects and four administrative staff.

The Office Manager has just attended a workshop on internal controls and the way in which they can improve organisations. He intends to implement some internal controls as soon as possible.

What are the limitations of an internal control system in Rio's business?

Options:

A.

Internal controls are only suitable for large businesses.

B.

Employees could ignore the internal controls.

C.

If Rio does not support the internal control system then the controls may not be adhered to.

D.

Internal controls may slow down the speed with which the architects can respond to enquiries.

E.

Internal controls will usually mean hiring more staff.

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Question 2

N, a large company in the food production industry, has grown over the years by the acquisition of several smaller rivals. The company has ten branches located in its home country and has just opened a foreign branch for the first time. It has recently made some changes to the structure and implementation of its control system.

 Which TWO of these would be most likely to improve the overall control system?

Options:

A.

Establishing an Internal Audit department.

B.

Purchase invoices are now approved for payment at branches and a list of approved invoices are sent to head office for payment. The invoices, supporting documentation and suppliers' statements are retained at the branches.

C.

Excess funds are now invested, by the Finance Director, in short-term securities. The Finance Director initiates buy and sell transactions and she also receives and retains all correspondence relating to the investments.

D.

A policy has been initiated to complete a physical inventory of all non-current assets at least annually. This is then reconciled with the non-current asset register.

E.

N has just opened a bank account in the currency in which the newly opened branch is now operating.

Question 3

Zia is an accountant and wishes to take out a Forward Rate Agreement (FRA) as a hedging instrument. The company treasurer has advised that a short-term interest rate (STIR) future would be better.

Which of the following is true of an STIR?

Options:

A.

A STIR can be tailored to the exact needs of the company.

B.

A STIR is flexible and the position can be closed quickly and easily.

C.

A STIR must be kept for the whole duration of the contract.

D.

If interest rates have gone down the price of the future will have fallen.