Page 279 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Exam style questions and answers

Answers to exam style questions

A: The existence of a national health system means that alternative
employment would be unlikely except perhaps in a minority of cases.

B: The negative media coverage will make it more difficult to get the support the
government needs to further the project and as previously they will need to take
time to respond.

C: A change in government is a possibility in 2 years. The opposition party
would be unlikely to continue with the project.

D: This is not a risk to the project rather it is a risk to the local population
resulting from the decision to centralise health care.

E: This is not a risk to the project but to the government.

2 A, B, D

A and B are potential results of DD deciding not to take immediate action.

C is not a potential result of DD’s decision but a potential result of the study
commissioned by the animal rights group.

D is a likely result of DD doing nothing since the newspaper is campaigning for
action.

E: This risk may actually be delayed by DD’s decision.

The environment risk cannot be accepted so must be reduced by appropriate
environmental controls. This rules out B and D as being most appropriate.

The burglary risk can be dealt with via insurance i.e. transfer (although an
insurer would expect adequate security to be in place at the factory so reduction
would have also been reasonable). Both A and C have transfer for the burglary
risk.

The supply of raw material is at risk due to world wide fluctuations and so it
seems more appropriate to accept this risk (C) than transfer it since it is difficult
to see who the risk would be transferred to.

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