CIMA Exam CIMAPRO19-P03-1 Topic 5 Question 87 Discussion

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

Question #: 87
Topic #: 5

B is a family run security company with a number of prestigious clients who rely onitto maintain online access to their CCTV and alarm systems and respond to any detected intrusions or malfunctions.

Itdesigns and installs security systems for a number of UHNW(Ultra High Net Worth) individuals who may have several seasonal and city residences largely unoccupied for many months of the year.

B's reputation as 100% secure is crucial toitson-going success in this very specialised marketplace.

SelectTHREE factors which should be given prominence inB'sfraud risk management strategy.

ABshould carry outbackground security, health and financialchecks on all employees, their immediate family members and associates on an annual basis.

BB should ask new employees to fill in a declaration that they are honest and have no criminal convictions for dishonesty. That can be filed as evidence that the company took this precaution.

CBshould inform clients that they have a stringent anti-fraud policy.

DB should have an active whistle-blower policy whereby all staff are encouraged by positive reward to report any suspicions they may have about other employees.

EB should ensure that employees whodesign or install security systems are not involved with the operation of those systems once implemented.

FB Should revise and publishtheir fraud policy document to employeesevery three months, highlighting any new elementsandindustry developments.

Show Suggested Answer

Suggested Answer: C, D

by Sabra at Feb 12, 2025, 08:23 PM

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Pilar

1 months ago

Can you imagine if one of the security installers tried to pull a fast one? Yikes, talk about a major breach of trust! Definitely need that segregation of duties.

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Alisha

7 days ago

D) B should have an active whistle-blower policy whereby all staff are encouraged by positive reward to report any suspicions they may have about other employees.

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Lavonna

10 days ago

A) B should carry out background security, health and financial checks on all employees, their immediate family members and associates on an annual basis.

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Lilli

2 months ago

Ooh, don't forget the monthly fraud policy updates! Gotta keep those employees on their toes. Maybe they can throw in a little quiz or something, make it fun.

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Chaya

11 days ago

Agreed! A little quiz could definitely make it more engaging for the employees.

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Naomi

14 days ago

F) B Should revise and publish their fraud policy document to employees every three months, highlighting any new elements and industry developments.

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Lottie

19 days ago

C) B should inform clients that they have a stringent anti-fraud policy.

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Nan

21 days ago

Definitely! Those updates are crucial for keeping everyone informed and accountable.

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Joesph

1 months ago

A) B should carry out background security, health and financial checks on all employees, their immediate family members and associates on an annual basis.

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Lynda

1 months ago

A, C, F

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Tori

2 months ago

I agree, but I'd also include that they should make sure their clients are aware of the anti-fraud measures. Transparency is key for building trust in this business.

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Stephaine

2 months ago

Yup, those are all important factors. I'd also add that they should have regular training and updates on fraud prevention for employees. Gotta stay on top of the latest tricks.

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Nan

2 months ago

Hmm, I think B should definitely focus on background checks, whistle-blower policies, and segregation of duties. Can't be too careful with security systems, especially for high-profile clients.

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Tomas

30 days ago

User 2

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Sage

2 months ago

User 1

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Stefania

2 months ago

I believe factors A, D, and F are the most important. Background checks, whistle-blower policy, and revising the fraud policy document regularly show a strong commitment to preventing fraud.

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Mohammad

3 months ago

I agree with you, Leana. Background checks, informing clients about anti-fraud policy, and having a whistle-blower policy are crucial for maintaining B's reputation.

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Leana

3 months ago

I think factors A, C, and D should be given prominence in B's fraud risk management strategy.

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