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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:
Sep 21, 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

RFD, a listed company, is considering making an investment in a risky new venture. RFD has a substantial cash surplus that will be used to acquire the necessary resources. It is unlikely that RFD would have been able to raise finance for this investment because the company is already highly geared.

Which of the following statements about stakeholders' conflicting interests are true?

Options:

A.

RFD's shareholders are exposed to the systematic risk from this project and the directors are exposed to total risk.

B.

RFD's lenders are likely to suffer a greater risk than RFD's equity investors.

C.

Neither RFD's shareholders or lenders are likely to have the means to prevent the directors from making this investment.

D.

RFD's existing employees are likely to enjoy a significant upside risk from this project.

E.

The diversification of RFD's interests will reduce the risks for all stakeholders.

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Question 2

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.

Question 3

B is a small retail bank that offers customers many on-the services B is keen to ensure sound security both to protect the bank's assets and also to safeguard customer privacy

B's IT Security Manager has suggested that the bank should use two phase authentication for access to the on-line systems

Which TWO of the following are examples of two phase authentication?

Options:

A.

Customers first input a password and then receive an access code via email or text message that also has to be input

B.

Customers first input a password and then use a card or token to gain access

C.

Customers must input a valid user name and then input a password user name first input a password and then a pin number

D.

Customer passwords must contain both letters and numbers and must be changed regularly.