CIMA Exam CIMAPRA19-P03-1 Topic 1 Question 42 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 42
Topic #: 1

HGY is a major global corporation that has decided to implement the COSO Enterprise Risk Management Framework and integrate management practices throughout the organisation

Which THREE of the following would be appropriate for HGY?

AAuthorise managers and supervisors to respond immediately to any risks that emerge

BMake risk management an element of everyone's responsibility

CRecruit a Director of Risk, who will lead risk management procedures.

DTrain staff at all levels to identify and report risks to their superiors

ECreate a risk management team that will take responsibility for identifying and mitigating risk

FIdentify risk as an element of HGY's overall strategy.

Show Suggested Answer

Suggested Answer: B, E, F

by Ilene at Apr 14, 2024, 04:44 PM

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Arthur

10 days ago

Haha, good one Felicitas! But you make a fair point. A dedicated risk management role might not be the best approach here. We want to empower everyone to be responsible for identifying and managing risks.

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Felicitas

12 days ago

Haha, can you imagine the Director of Risk just sitting in their office all day, waiting for someone to report a risk? 'Finally, my time has come!'

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Nu

13 days ago

Good point, Milly. I think that option could lead to a lot of chaos and inconsistent risk management approaches across the organization. We need to have some standardized processes and accountability.

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Milly

14 days ago

I'm a little concerned about option A - authorizing managers and supervisors to respond immediately to any risks. Isn't that a bit too decentralized and reactionary? Shouldn't there be some sort of oversight or coordination?

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Lizette

16 days ago

I agree with Van. Those three options make the most sense. Recruiting a Director of Risk feels a bit too centralized, and I'm not sure a risk management team is necessary if everyone is responsible for identifying and mitigating risks.

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Van

17 days ago

This question seems pretty straightforward. I think the appropriate options are B, D, and F. Making risk management everyone's responsibility, training staff to identify and report risks, and identifying risk as part of the overall strategy are all key elements of the COSO ERM framework.

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