CIMA Exam CIMAPRO19-P02-1 Topic 7 Question 87 Discussion

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

Question #: 87
Topic #: 7

[All CIMAPRO19-P02-1 Questions]

To which technique for dealing with risk and uncertainty do ALL of the following statements apply?

* It requires that only one factor is considered at a time.

* It identifies areas which are crucial to a project, which can then be monitored if the project is chosen.

* It does not provide an indication of the likelihood of any change in the factors.

* Following the calculation, it requires the exercising of judgement to decide whether to accept or reject a project.

ASensitivity analysis

BProbability analysis

CScenario analysis

DAdjusting the discount rate to reflect risk.

Show Suggested Answer

Suggested Answer: A

by Kent at May 07, 2024, 11:49 PM

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Gayla

2 days ago

Ah, the joys of risk management. It's like playing a game of Russian roulette, but with spreadsheets instead of guns. Just remember, the more factors you consider, the more chances you have to accidentally shoot yourself in the foot!

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Eliz

5 days ago

Adjusting the discount rate? Really? That's like trying to solve a math problem by hitting it with a hammer. I'm going with sensitivity analysis - it's the only one that ticks all the boxes here.

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Ceola

18 days ago

Scenario analysis? That's a bold choice, but I can see how it might work. Gotta think outside the box, right? Although, now that I re-read the question, sensitivity analysis does seem like the way to go.

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Kathrine

3 days ago

Yeah, it requires looking at one factor at a time.

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Cheryll

4 days ago

I think sensitivity analysis is the way to go.

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Bette

23 days ago

Hold on, I'm not so sure. Probability analysis also seems to match those criteria. Maybe I should double-check the definitions just to be safe.

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Omega

I think sensitivity analysis is the correct answer. It focuses on one factor at a time.

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Rene

27 days ago

I'm not sure, but I think it could also be D) Adjusting the discount rate to reflect risk. That also requires judgement to decide.

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Percy

29 days ago

Hmm, this sounds like sensitivity analysis to me. All those statements seem to fit the bill. I'm confident this is the correct answer - it's the one that makes the most sense.

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