CIMA Exam CIMAPRA19-P03-1 Topic 6 Question 51 Discussion

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

Question #: 51
Topic #: 6

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 Marsha at Jul 17, 2024, 11:31 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-P03-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Nan

4 months ago

I'm laughing at the idea of issuing a press release saying our power stations are 'entirely safe'. That's like putting a band-aid on a broken leg. A, C, and E are the only sane options here.

upvoted 0 times

Nikita

3 months ago

E) Attempt to increase the level of insurance cover against this type of eventuality

upvoted 0 times

...

Starr

3 months ago

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

upvoted 0 times

...

Glenna

3 months ago

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

upvoted 0 times

...

Gary

4 months ago

A, B, and E are the way to go. Sending experts to the collapse site could give us valuable insights, and beefing up our insurance is a no-brainer.

upvoted 0 times

...

Gracie

4 months ago

This is a tricky situation, but A, C, and E seem like the most responsible choices. We can't afford to take any risks with public safety.

upvoted 0 times

Winfred

3 months ago

E) Attempt to increase the level of insurance cover against this type of eventuality

upvoted 0 times

...

Winfred

3 months ago

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

upvoted 0 times

...

Winfred

3 months ago

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

upvoted 0 times

...

Denny

5 months ago

I disagree with F. Issuing a press release claiming all stations are safe seems unethical.

upvoted 0 times

...

Dwight

5 months ago

I think B is also important. Gathering first-hand information is crucial.

upvoted 0 times

...

Madelyn

5 months ago

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

upvoted 0 times

...

Francisca

5 months ago

A, B, and C are the only ethical options here. We need to gather as much information as possible and take proactive steps to ensure the safety of our operations.

upvoted 0 times

...

Alison

5 months ago

Definitely A, C, and E. We need to thoroughly review the safety of our power stations and have contingency plans in place. Increasing insurance coverage is also a smart move.

upvoted 0 times