From a free demo to 365 days of free updates and a 60-day money-back guarantee if you fail the corresponding exam, 2Pass4sure covers the whole CIMAPRA19-P03-1 preparation journey. For most candidates in 2026, the CIMA Risk Management package with 223 practice questions is the only stop they need.

CIMA CIMAPRA19-P03-1 Exam Overview:

CIMA CIMAPRA19-P03-1 Exam Syllabus Topics:

Answers to the Most Common Questions About CIMA Risk Management

CIMA Risk Management Sample Questions:

Question 1

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

Question 2

B, a construction company, has a policy of carrying out a post completion audit on every construction project undertaken where the value exceeds $1 million.
What is the role of the post completion audit?

A. To highlight what can be done to improve similar future projects.
B. To apportion blame for things not done well.
C. To reward staff and celebrate success.
D. To signify the end of the project.

Question 3

DFG's call centre budgets four minutes for its operators to deal with a customer's enquiry and conclude the call. Team leaders are evaluated on the basis of the average call length.
Simone is a team leader. Her team's average call length is five minutes and 30 seconds. Simone accepts full responsibility. She encourages her team members to check that the customer is satisfied before concluding the call.
On investigation, it was discovered that 2% of the customers who dealt with Simone's team had to call DFG again within seven days. Other teams had an average of 25% of customers call back within seven days because their first call had not fully resolved their problem.
Which of the following statements are true?

A. Simone is in breach of call centre policy.
B. Average call length should be replaced with the average rate of return calls as the primary performance measure for team leaders.
C. It would be better to evaluate team leaders on the basis of multiple criteria.
D. Team leaders should be responsible for setting policy on performance measurement within the call centre.
E. The use of average call length may be leading to dysfunctional behaviour.

Question 4

Which of the following statements concerning the use of balanced scorecards to measure divisional performance is correct?

A. Dysfunctional behaviour is more difficult than under traditional reporting because a wide range of factors will be measured and reported.
B. Dysfunctional behaviour is impossible because divisional managers are evaluated on so many different decisions.
C. The input for balanced scorecard reports comes from many sources so it is not possible to misrepresent performance.
D. Contradictory and inconsistent targets prevent balanced scorecards being a useful tool for performance evaluation.

Question 5

TYU is a retailer selling televisions. The company is financed wholly by equity.
Why might TYU be exposed to interest rate risk?

A. Customers' disposable income may change.
B. TYU's competitors may have fixed rate borrowings.
C. TYU's competitors may have variable rate borrowings.
D. TYU's suppliers may have borrowings.
E. TYU's cost of capital will vary with interest rates.

Solutions: