CIMAPRO19-P02-1 Exam - Topic 4 Question 46 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 46
Topic #: 4

The management of a leisure company, who are risk averse, have just approved an investment in a new amusement park. The country in which the amusement park will be located has a warm and mostly dry climate throughout the year.

A number of specific risks related to this investment have been identified as follows.

(1) Losses of very small amounts of revenue due to poor weather.

(2) A significant financial liability may arise due to the injury of a member of the public.

(3) Loss of several days of revenue due to rides being unavailable because of poor maintenance routines.

(4) Income fraud as a consequence of the high levels of cash handled by employees.

Using the TARA framework, which is the most appropriate way of managing each of these risks?

ATransfer risk 1; accept risk 2; avoid risk 3; reduce risk 4

BAccept risk 1; avoid risk 2; transfer risk 3; reduce risk 4

CAccept risk 1; transfer risk 2; avoid risk 3; reduce risk 4

DReduce risk 1; transfer risk 2; avoid risk 3; accept risk 4

Show Suggested Answer

Suggested Answer: C

by Nu at May 03, 2022, 08:55 PM

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5 months ago

Hmm, I'm a bit unsure about this one. I know capacity planning considers resource constraints, but I'm not totally clear on how that differs from material planning. I'll have to think it through carefully.

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