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CIMA Risk Management Sample Questions (Q284-Q289):

NEW QUESTION # 284
The Chief Executive Officer (CEO) of a quoted company has visited the company's Information Technology (IT) Centre in order to meet with the Head of IT. The CEO was concerned to discover that the door to the IT Centre was unlocked, even though the receptionist was not at their desk.
Which THREE of the following are correct?

A. The CEO should have locked the door and taken no further actionB. The CEO should inform the Head of IT of the security breach.C. The CEO should leave IT security to the Head of IT.D. The CEO should accept that this may have been an isolated incidentE. The CEO should initiate disciplinary action against the receptionistF. The CEO should notify the Head of Internal Audit of the breach.

Answer: B,E,F

NEW QUESTION # 285
W plc is a large international supermarket chain. It has many thousands of suppliers and many thousands of others competing for "shelf space" in its supermarkets.
Which of the following would be appropriate provisions for W plc to include in its Ethical Code in relation to its suppliers?

A. W plc shall endeavour to adhere to the terms of its contracts with its suppliers at all times.B. W plc shall endeavour to take as high a percentage of each supplier's output as possible.C. W plc shall continuously remind suppliers that it always has several alternative suppliers to choose from.D. W plc shall keep confidential all information received from suppliers and potential suppliers.E. W plc shall not use its buying power unscrupulously.F. W plc shall insist on an exclusivity agreement with each supplier so that identical products are not available from other outlets.

Answer: A,D,E

NEW QUESTION # 286
R is a company running gas-fired power stations in Western Europe. The Risk Committee has just received a report that a power station built to the same design and specification in a developing country has recently collapsed. The causes of the collapse are unclear, but if something similar were to happen in Europe the consequences for R could be catastrophic.
Which of the following actions being considered by the Risk Committee are ethical?

A. Issue a press release confirming that all R's power stations are "entirely safe".B. C. Commission a reputable firm of structural engineers to carry out a review of all power stations owned byD. Draw up contingency plans in case some of R's power stations need to be shut down.E. Send experts employed by R to the site of the collapse so that they can gather information first hand on what happened.F. Decide that the information available to date is too uncertain to take any action for now.G. Attempt to increase the level of insurance cover against this type of eventuality.

Answer: C,D,E

NEW QUESTION # 287
G plc has decided to move its production plant to overseas Country A.
This would make the product cheaper to produce. The technology used to make the product is very advanced and some of the staff would have to move to Country A.
The Production Director has identified that there are some political risks in moving to Country A.
Match the methods of reducing the political risks associated with the move to Country A with the corresponding risks.

Answer:

Explanation:

NEW QUESTION # 288
The list below has duties performed by risk managers and internal auditors. Show who would carry out the duties assuming the company has both risk managers and internal auditors.

Answer:

Explanation:

NEW QUESTION # 289
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