CIMA Exam CIMAPRA19-P03-1 Topic 1 Question 60 Discussion

Actual exam question for CIMA's CIMAPRA19-P03-1 exam

Question #: 60
Topic #: 1

TDC is a company which runs 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 the consequences for TDC would be catastrophic if something similar were to happen in Europe

Which of the following actions being considered by the Risk Committee are ethical?

Select ALL that apply

ACommission a reputable firm of structural engineers to carry out a review of all power stations owned by TDC

BSend experts employed by TDC to the site of the collapse so that they can gather information first hand on what happened

CDraw up contingency plans in case some of TDC's power stations need to be shut down

DDecide that the information available to date is too uncertain to take any action for now

EAttempt to increase the level of insurance cover against this type of eventuality

FIssue a press release confirming that all TDC's power stations are 'entirely safe'.

Show Suggested Answer

Suggested Answer: A, B, C

by Lonna at Oct 18, 2024, 04:12 PM

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Lili

2 months ago

What, they're actually considering option F? 'Entirely safe'? That's like putting a 'Caution: Hot' sign on a volcano. A, C, and E are no-brainers, but I'd also go with B to get the full picture.

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Rodolfo

2 months ago

Ooh, I smell a lawsuit brewing if they go with F. Might as well just hand over the company to the lawyers. A, C, and E are the way to go - and maybe we can send the CEO to the collapse site, just to be sure.

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Heike

2 months ago

Definitely A, C, and E. But I'd also throw in B - we need to understand what happened on the ground. Option F is just asking for trouble, and D is the easy way out.

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2 months ago

The right course of action here is A, C, and E. We need to thoroughly inspect the power stations and have a contingency plan in case any need to be shut down. Increasing insurance coverage is also prudent.

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