ARM 400 FINAL EXAM PAPER 2026
COMPLETE QUESTIONS AND CORRECT
ANSWERS GRADED A+
◉ ________________ is an essential goal for all public entities. Answer:
continuity of operations
◉ An organization must meet the standard of care that it owes to
others in order to ensure that.... Answer: legal obligations are
satisfied
◉ What are the five steps of the risk management process?. Answer:
- scan environment
- identify risk
- analyze risk
- treat risk
- monitor and review
◉ Which one of the following statements is true regarding the
evolution of risk and risk management?. Answer: the definition of
risk has evolved to include positive as well as negative attributes
,◉ Risk management professionals must collaborate with data
analysts during which two steps of the risk management process?.
Answer: analyze risk and monitor risk treatments
◉ Jane always drives to visit her children who live 1,000 miles away.
She enjoys driving and feels safer in a vehicle than on an airplane
because she feels she has more control of her fate. The driving
versus flying decision is an example of:. Answer: subjective risk
◉ _______________ enhances an organizations reputation. Answer:
social responsibility
◉ Samuel was recently hired as a risk management professional for
Parker Property Management. He has been asked by senior
management to review the organizations current insurance policies
to make sure that the organization is adequately protected, and also
see if there are any opportunities to save on the premiums. Samuel
must do which of the following through internal communication
before he will be able to complete the task?. Answer: determine the
organizations risk appetite
◉ Billy owns a beach front cottage which has become his primary
residence. Billy's primary concern is that his home will be hit by a
hurricane and badly damaged or even destroyed. For Billy, this
hurricane risk is a.... Answer: subjective risk
, ◉ Risk can be classified as subjective or objective. Which one of the
following statements is correct with respect to these risk
classifications?. Answer: subjective risk can exist even where
objective risk does not
◉ Asking a question such as "How do you think this will work out?"
can help a speaker do which of the following?. Answer: request
feedback and determine if the message has been understood
◉ Which one of the following is an internal source that can often
provide information regarding risks that aren't obvious?. Answer:
internal auditing
(the internal audit function can often provide information regarding
risk that aren't obvious, such as employees creating a risk by not
adhering to certain processes)
◉ The fundamental purpose of a risk management framework is
to.... Answer: integrate risk management throughout the
organization
◉ In an effort to grow personal lines book, an insurer decides to
offer discounts on homeowners and personal auto insurance to the
employees of its largest business lines account. Which one of the
following risk measures is most likely to increase as a result of this
marketing decision?. Answer: Correlation
COMPLETE QUESTIONS AND CORRECT
ANSWERS GRADED A+
◉ ________________ is an essential goal for all public entities. Answer:
continuity of operations
◉ An organization must meet the standard of care that it owes to
others in order to ensure that.... Answer: legal obligations are
satisfied
◉ What are the five steps of the risk management process?. Answer:
- scan environment
- identify risk
- analyze risk
- treat risk
- monitor and review
◉ Which one of the following statements is true regarding the
evolution of risk and risk management?. Answer: the definition of
risk has evolved to include positive as well as negative attributes
,◉ Risk management professionals must collaborate with data
analysts during which two steps of the risk management process?.
Answer: analyze risk and monitor risk treatments
◉ Jane always drives to visit her children who live 1,000 miles away.
She enjoys driving and feels safer in a vehicle than on an airplane
because she feels she has more control of her fate. The driving
versus flying decision is an example of:. Answer: subjective risk
◉ _______________ enhances an organizations reputation. Answer:
social responsibility
◉ Samuel was recently hired as a risk management professional for
Parker Property Management. He has been asked by senior
management to review the organizations current insurance policies
to make sure that the organization is adequately protected, and also
see if there are any opportunities to save on the premiums. Samuel
must do which of the following through internal communication
before he will be able to complete the task?. Answer: determine the
organizations risk appetite
◉ Billy owns a beach front cottage which has become his primary
residence. Billy's primary concern is that his home will be hit by a
hurricane and badly damaged or even destroyed. For Billy, this
hurricane risk is a.... Answer: subjective risk
, ◉ Risk can be classified as subjective or objective. Which one of the
following statements is correct with respect to these risk
classifications?. Answer: subjective risk can exist even where
objective risk does not
◉ Asking a question such as "How do you think this will work out?"
can help a speaker do which of the following?. Answer: request
feedback and determine if the message has been understood
◉ Which one of the following is an internal source that can often
provide information regarding risks that aren't obvious?. Answer:
internal auditing
(the internal audit function can often provide information regarding
risk that aren't obvious, such as employees creating a risk by not
adhering to certain processes)
◉ The fundamental purpose of a risk management framework is
to.... Answer: integrate risk management throughout the
organization
◉ In an effort to grow personal lines book, an insurer decides to
offer discounts on homeowners and personal auto insurance to the
employees of its largest business lines account. Which one of the
following risk measures is most likely to increase as a result of this
marketing decision?. Answer: Correlation
