CIMA Exam CIMAPRA19-P03-1 Topic 4 Question 65 Discussion

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

Question #: 65
Topic #: 4

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 Edison at Feb 06, 2025, 08:21 AM

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Isreal

14 days ago

B sounds a bit sketchy to me. Sending in their own experts? Nah, gotta get an independent firm to do the review. Can't have any conflicts of interest here.

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Stephaine

17 days ago

Haha, F is hilarious. 'Entirely safe' - yeah, right. That's like putting lipstick on a pig. No one's going to buy that spin. Gotta go with the engineering review and contingency planning.

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Lashandra

3 days ago

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

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Reena

7 days ago

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

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Loreta

1 months ago

I agree, A, C, and E are the way to go. D and F are just trying to sweep this under the rug, which is never a good idea. Safety should be the top priority.

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Kristel

9 days ago

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

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Lezlie

21 days ago

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

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Melvin

1 months ago

I'm not sure about B and E. Sending experts and increasing insurance might be too reactive.

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Louis

1 months ago

I agree with Leah. A review and contingency plans are necessary.

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Dulce

1 months ago

A, C, and E are the clear ethical choices here. TDC needs to proactively assess their facilities and have contingency plans in place. Trying to increase insurance is also a prudent move.

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