CIMA Risk Management (P3) Practice Exam

Horizon scanning is a forward-looking activity in risk management that systematically searches for emerging risks and opportunities across different domains so you can anticipate and prepare rather than simply react to what has already happened. It involves gathering signals from a range of sources—technology, policy, economy, environment, society, and geopolitics—identifying weak signals, and turning them into scenarios and early warnings that inform strategy and controls. This approach is useful because it broadens awareness beyond the current risk register, helping the organization spot potential disruptions before they materialize and enabling proactive resource allocation, contingency planning, and resilience building. It supports scenario planning, stress testing, and updating risk appetite and governance as new information emerges, ensuring risk management stays aligned with a changing environment. It’s not limited to looking backward at past incidents, nor is it a financial forecasting tool, and it isn’t irrelevant to risk management.