ACCA APM December 2026: Why Listing TARA Risk Responses Scores Almost Nothing

Writing "Transfer, Avoid, Reduce, Accept" in an APM risk answer earns almost nothing. The marks sit in applying each response to the scenario, with a reason it fits.

What the marking actually rewards

APM is an application paper. The examining team has said repeatedly, across sittings, that knowledge on its own is not what separates passes from fails. Candidates who recite a model and then stop leave most of the marks on the table. The 40% pass rate for March 2026 is a reminder of how unforgiving that is.

Risk questions in Section B are the classic trap. The model (TARA) is easy to learn, so almost everyone writes it. Few candidates then ask the question the marker is actually asking: which response suits this company, this risk, this risk appetite?

Marking schemes for these questions award marks for a point made, explained and linked to the scenario. A bare heading earns, at best, a fraction of a mark. A developed point tied to a figure or fact from the scenario earns the full mark.

Wrong answer vs right answer

Scenario: a manufacturer buys 70% of its components from one overseas supplier, and a currency swing has just cut margins.

Weak answer: "The company could transfer the risk, avoid the risk, reduce the risk or accept the risk." No marks of substance. It could be about any company.

Strong answer: "Reduce: dual-source at least a quarter of components from a domestic supplier, lowering dependency on one currency and one logistics route. Transfer: hedge the foreign currency exposure with forward contracts, since the board has shown low appetite for margin volatility. Accept: the residual price risk on the remaining 75% is likely cheaper to bear than to hedge fully."

Same model, but every sentence is about this business, and each response comes with a reason. That is the whole difference.

What to do

1. Link every response to risk appetite. Before you pick a response, state whether the board is risk-averse or risk-seeking, using a clue from the scenario. That one line justifies everything after it.

2. Use the numbers. If the scenario says 70%, write 70%. Quantified points are the quickest way to prove you read the case.

3. Pick, then recommend. Do not give four equal responses. Choose the best one or two, say why, and flag the residual risk you are accepting.

The bottom line

APM pass rates have sat around the 40% mark in recent sittings. The syllabus is learnable; the difference is almost always application. Learn TARA in ten minutes, then spend your real revision time making it specific.

A model gets you onto the page. The scenario gets you the marks.