Exam P3 Topic 1 Question 272 Discussion

Actual exam question for CIMA's P3 exam
Question #: 272
Topic #: 1

GHJ is a manufacturing company that insures against the financial costs associated with industrial injuries involving staff. The Health and Safety Office is part of GHJ's Operations Department. GHJ's insurers will automatically increase the insurance premium by 10% in the event of a claim against the policy.
Which TWO of the following are correct?

A. The risk that a serious accident could impair the morale of uninjured staff is related to the financial risk associated with accidents. B. The automatic increase in the insurance premium is part of the financial risk associated with industrial injuries. C. The risk of an increase in the cost of injury insurance cover should be made the responsibility of the company's finance function D. The insurance cover means that management need only be concerned with the possibility of a 10% increase in the premium m the event of a serious accident. E. Linking the risks associated with industrial injuries will overcomplicate the management of those risks.

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