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CIMA Risk Management Sample Questions (Q41-Q46):
NEW QUESTION # 41
UIO sells mobile phones through a cham of 100 shops spread across the country Shop managers have considerable discretion over pncmg and the incentives offered to sales staff Shop managers are evaluated on the monthly contribution from completed sales. Those who exceed targets by more than 10% for three successive months are promoted Those who fail to achieve monthly targets in two successive months lose their jobs Which of the following statements are true of the performance management of UIO's shop managers?
Select ALL that apply
- A. UIO's shop managers are encouraged to sell phones at a loss
- B. UIO's shop managers have an incentive to develop attractive sates promotions for their shops
- C. LHO's shop managers have an incentive to offer excellent customer service
- D. UIO's shop managers may have very little sense of loyalty to the company
- E. UIO's shop managers are encouraged to take risks that may harm UIO
Answer: A,D,E
NEW QUESTION # 42
Y plc, a pharmaceutical company, has dealt with a number of risks in the manner indicated below.
Use the TARA framework to classify each of Y plc's responses.

Answer:
Explanation:


NEW QUESTION # 43
DFG's home currency is the D$.
DFG is heavily exposed to the exchange rate between the D$ and the L$, country L's currency. DFG's treasurer has noted the following:
* Inflation has been running at 5% in DFG's home country and 8% in country L
* Interest rates are 7% in DFG's home country and 11% in country L
* The spot rate is D$1.0000 = L$2.1000 and the three month forward rate is D$1.0 = L$2.1196 Which of the following statements is consistent with these figures?
- A. Interest rates are expected to continue unchanged, but country L's inflation rate will decrease in proportion to the inflation rate in DFG's home country.
- B. Country L's interest rate is expected to increase relative to that of DFG's home country and inflation rates are expected to continue unchanged.
- C. Country L's interest rate is expected to decline relative to that of DFG's home country and inflation rates are expected to continue unchanged.
- D. Interest rates are expected to continue unchanged, but country L's inflation rate will increase in proportion to the inflation rate in DFG's home country.
Answer: D
NEW QUESTION # 44
L's risk register currently states the likelihood of risks m terms of their estimated percentage probabilities. The risk committee cs considering classifying risks using a three point scale high, medium and low.
Which TWO of the following are true?
- A. High, medium, low will eliminate subjectivity
- B. High, medium and low will be easier to use
- C. Using percentages will be more scientific
- D. Quantifying probabilities as percentages gives greater scope for describing risks
- E. Everyone will agree the meaning of high, medium and low
Answer: C,D
NEW QUESTION # 45
The Head of IT Security has been asked to conduct a detailed forensic analysis of a suspected data breach that ted to customer credit card details being intercepted.
Which TWO of the following would be suitable objectives for such a forensic analysis?
- A. Recovering the stolen credit card details before they can be abused by criminals
- B. Developing an understanding of the vulnerabilities that led to the breach
- C. Preventing the credit card companies from blaming the entity for fraudulent charges
- D. Identifying customers whose details have been stolen
- E. The collection of evidence that can be used to convict the perpetrators of the breach.
Answer: B,D
NEW QUESTION # 46
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