CIMA CIMAPRA19-P03-1 Exam : CIMA Risk Management Exam

CDE an online ticket sales agent, has unwittingly become an accomplice in cyber crime and is suffering attacks on its own business as a result CDE's website was poorly designed and cyber-attackers have managed to inject the site with malware, so that it collects all of CDE's customer log-in information and enables the cyber-attackers to retrieve it The cyber-attackers subsequently use this information to set up Botnet agents in the customers' devices which are then used in a Distributed Denial of Service (DDoS) attack whenever very popular tickets are being placed on sale such as international football matches The cyber-attackers secure access to a single portal on the site and buy multiple tickets for subsequent sale on the black market while the DDoS causes all other portals to be overloaded preventing real fans acquiring the tickets at face value Which TWO of the following apply in this scenario?

• A. CDE is likely to face significant fines for the breach.
• B. CDE customers will turn to other ticket sources for their tickets
• C. CDE will remain just as profitable selling to the black market as to real fans
• D. CDE is likely to lose the ticket franchise for international football events
• E. CDE will need to implement a new firewall to prevent this type of attack.

Which of the following are true of an effective risk management culture?

• A. All staff should be aware of risks affecting the entity.
• B. Staff should be penalised for being associated with negative events.
• C. The directors should take an active interest in risk management.
• D. Responsibility for risk management should be devolved to a risk manager.
• E. All risk should be eliminated.
• F. Risk management should be regarded as part of the overall business strategy.

Company directors who exercise executive share options generally resell the shares immediately, rather than holding them Which of the following best explains this behavior?

• A. The shares are out of the money at the exercise date
• B. Shareholders become nervous when the directors hold shares
• C. The directors receive a risk-free gain
• D. It is a conflict of interest for directors to be shareholders.

C is an accounts clerKwho is supposed to sign each invoice as evidence that she has conducted checks against supporting documents Sometimes C signs invoices without making these checks D is a member of the internal audit team He has been told to conduct compliance tests on whether C is checking the invoices property Which of the following would grve D a false sense of assurance that C's checks have been in operation?
Select ALL that appry

• A. D worked at a spare desk in the accounts department and quietly watched C without telling her She checked every invoice carefully while D was present
• B. D reviewed a sample of invoices for purchases of plant and equipment and found that C had not signed them C explained that she believed that those were authonsed by someone else although the accounts manual indicates that it was her responsibility
• C. asked C a series of open-ended questions about the operation of the purchases system She did not mention anything about detailed checks of invoices against documents
• D. D examined a sample of invoices to make sure that they had been signed by C AH had been signed selected a sample of purchase invoices and compared each to the supporting documents that C is supposed to review Every one of D's invoices was supported by the related documents

Which of the following is an ethical dilemma?

• A. A company is considering giving poorly-paid staff a generous pay rise.
• B. A company is deciding whether to make a substantial bonus payment to its directors by means of cash or shares.
• C. A company must decide whether to settle a claim from an employee who appears to have fabricated a workplace injury. The company want to avoid the cost of defending the claim.
• D. A company is deciding whether to issue debt or equity.