CIMAPRO19-P03-1 Exam - Topic 3 Question 90 Discussion

Actual exam question for CIMA's CIMAPRO19-P03-1 exam

Question #: 90
Topic #: 3

K is a large mining company. Initsrisk reportitstates that there is a risk of accidents and injury because of the nature of the industry. Itstates thatithasstaff training in place and complieswith allHealth and Safety regulations but in spite of this there will still be a residual risk that accidents and injuries may occur.

Which of the followingstatements are correct?

AThe shareholders should not invest because there is still a residualrisk.

BThe directors are avoiding their responsibilities by saying there is a residual risk.

CSome risks cannot be eliminated.

DAccepting a residual risk does not imply the company is reckless.

EMost companies in this industry will say something similar in their risk report.

Show Suggested Answer

Suggested Answer: C, D, E

by Kasandra at Apr 04, 2025, 04:56 PM

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Anthony

5 months ago

Most companies? That’s a bit of a stretch, isn’t it?

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Merissa

5 months ago

Totally agree, it’s just part of the industry.

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Solange

6 months ago

Residual risk is common in mining.

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Mable

6 months ago

Really? Sounds like they’re just covering their backs.

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Derick

6 months ago

Some risks can’t be avoided, that’s a fact.

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Arlette

6 months ago

I think E could be true too; many companies probably have similar statements in their reports, especially in sectors with inherent risks.

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Gilma

6 months ago

I feel like D makes sense because accepting some risk is part of doing business, especially in mining. It doesn't mean they're being reckless.

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Loreta

7 months ago

I'm not sure if saying shareholders shouldn't invest just because of residual risk is fair. It seems too absolute, but I could be wrong.

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Patti

7 months ago

I remember discussing how residual risks are common in high-risk industries like mining, so I think C is likely correct.

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Lenna

7 months ago

This seems straightforward to me. The company is being upfront about the residual risks, which is the responsible thing to do. I'll select the options that support that.

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Bernardo

7 months ago

I'm a bit confused by the wording of the options. I'll need to re-read the question and think about the company's responsibilities when it comes to managing risks.

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Bulah

8 months ago

Okay, I think I've got a handle on this. The key is recognizing that some risks can't be completely eliminated, even with safety measures in place. I'll select the options that acknowledge that.

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Filiberto

8 months ago

Hmm, the question is asking about the company's risk report and whether the statements are correct. I'll need to focus on understanding the concept of "residual risk" and how that applies here.

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Shalon

8 months ago

This is a tricky one. I'll need to carefully read through the options and think about the key points in the question.

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Gaston

1 year ago

Ha! I bet the shareholders would still invest even if there was a 'Godzilla-sized' residual risk. As long as the money's good, right?

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Vallie

1 year ago

This is a tricky one. I bet E is true - most mining companies probably have similar risk disclosures in their reports.

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Detra

11 months ago

E) Most companies in this industry will say something similar in their risk report.

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Celia

12 months ago

D) Accepting a residual risk does not imply the company is reckless.

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Bernadine

12 months ago

C) Some risks cannot be eliminated.

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Sylvia

1 year ago

D seems like the best choice to me. Accepting residual risk doesn't mean the company is being reckless, it's just being realistic.

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Annamae

11 months ago

E makes sense too. It's likely that most companies in this industry will have similar statements in their risk reports.

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Iraida

11 months ago

I think C is also correct. It's true that some risks are inherent to the nature of the industry.

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Sheron

12 months ago

I agree, D is the best choice. It's important to acknowledge that some risks cannot be completely eliminated.

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Misty

1 year ago

I disagree with B. The directors seem to be acknowledging the risks upfront, which is responsible, not avoiding their duties.

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Anthony

12 months ago

D) Accepting a residual risk does not imply the company is reckless.

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Clorinda

12 months ago

C) Some risks cannot be eliminated.

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Dorothy

1 year ago

A) The shareholders should not invest because there is still a residual risk.

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Magda

1 year ago

I believe most companies in this industry will have similar statements in their risk reports.

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Juliana

1 year ago

I agree with you, Denna. Accepting a residual risk does not mean the company is reckless.

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Alida

1 year ago

Hmm, I think C is the correct answer. Some risks can never be fully eliminated, especially in high-risk industries like mining.

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Louvenia

11 months ago

E) Most companies in this industry will say something similar in their risk report.

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Lenora

11 months ago

D) Accepting a residual risk does not imply the company is reckless.

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Hershel

11 months ago

C) Some risks cannot be eliminated.

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Dahlia

1 year ago

A) The shareholders should not invest because there is still a residual risk.

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Denna

1 year ago

I think statement C is correct. Some risks cannot be eliminated.

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