CIMA P3 Formula Sheet
The key formulas for CIMA P3 (Risk Management) on a single A4 page, free to download and print. Built to the paper's current examinable scope.
P3 Formula Sheet · PDF · 1 page · A4 · print-ready
Download the P3 formula sheetUpdated 25 September 2026: the Σ symbols in expected value and variance now print correctly, the COSO ERM note lists all five components, and the sheet has been re-typeset. If you printed an earlier copy, please download it again.
The formulas on the P3 sheet
The full sheet, reproduced as text so you can revise on screen. Last checked September 2026. Spotted an error? Report it and it will be corrected.
Expected Value & Decision Trees
- Expected value = Σ (Outcome × Probability)
- Roll back decision trees from final outcomes to the initial decision point
- EV is a long-run average, so use it with caution for one-off decisions
Measures of Risk
- Variance = Σ [(Outcome − EV)2 × Probability]
- Standard deviation = √(Variance)
- Coefficient of variation = Std deviation ÷ Expected value
Value at Risk (VaR) — concept
- VaR = the maximum expected loss, over a given time period, at a given confidence level
- e.g. '1−day 95% VaR of $2m' = 5% chance of losing more than $2m in one day
Risk Appetite & Control
- Risk appetite = the amount of risk an organisation is willing to accept in pursuit of objectives
- Risk tolerance = the acceptable range of variation around a risk target
- Control cost-benefit: implement a control only where expected benefit > cost of control
Cyber & Operational Loss Quantification
- Expected annual loss = Probability of event × Impact if it occurs
- Summed across all identified risk events for an aggregate risk exposure figure
Enterprise Risk Management
- Three lines model: (1) Operational management, (2) Risk/compliance oversight functions, (3) Internal audit
- COSO ERM components: governance and culture; strategy and objective-setting; performance; review and revision; information, communication and reporting
How to use it
A formula sheet is a revision aid, not a substitute for practice. Reading formulas builds recognition; applying them under time pressure builds recall, and it's recall the exam tests. The most effective way to use this sheet is alongside questions: attempt a question first, then check the sheet only when you're stuck, rather than working with it open in front of you.
Print it and keep it beside you while you work through P3 questions. Once you stop reaching for it, you know the formulas are in place.
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This sheet is an original compilation of standard formulas mapped to CIMA P3's current examinable scope. It is a revision aid only and is not a substitute for the official formulae and rates provided in your exam. Looking for another paper? See all CIMA formula sheets. GoQualified is not affiliated with CIMA.