CIMA Exam CIMAPRO19-P03-1 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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Gaston

3 months 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

3 months 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

1 months ago

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

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Celia

2 months ago

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

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Bernadine

2 months ago

C) Some risks cannot be eliminated.

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Sylvia

3 months 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

2 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

2 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

2 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

3 months 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

2 months ago

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

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Clorinda

3 months ago

C) Some risks cannot be eliminated.

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Dorothy

3 months ago

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

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Magda

4 months ago

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

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Juliana

4 months ago

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

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Alida

4 months 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

2 months ago

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

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Lenora

2 months ago

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

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Hershel

2 months ago

C) Some risks cannot be eliminated.

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Dahlia

3 months ago

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

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Denna

4 months ago

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

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