ARM 400 PRACTICE EXAMS - ALL
CHAPTERS!!!! QUESTIONS AND ANSWERS
WITH VERIFIED SOLUTIONS 100%
During the past year, International Toys has undertaken four capital projects. The
company has renovated and refurbished one of its aging warehouse buildings. It has
purchased the most recent version of its current order processing computer software. It
has added two trucks to its fleet of delivery vehicles. Lastly, it has purchased a new
production machine that will allow it to launch a new product line. Which one of the
following company projects is the most speculative risk? - CORRECT ANSWES --
The new production machine
According to the law of large numbers, as the number of exposure units insured
increases, - CORRECT ANSWES -- The relative accuracy of predictions about future
losses increases
The fundamental purpose of a risk management framework is to - CORRECT ANSWES
-- Integrate risk management throughout the organization
Which one of the following provides a measure of the maximum potential damage
associated with an occurrence? - CORRECT ANSWES -- Exposure
Aligning risks with the organization's risk appetite defines - CORRECT ANSWES --
Tolerable uncertainty
An organization must meet the standard of care that it owes to others in order to ensure
that - CORRECT ANSWES -- Legal obligations are satisfied
Julian was having a conversation with Tania, one of his employees. At this point, Julian
said, "What I hear you say is that you would like to take on more responsibility. Is that
correct?" Which one of the following elements of active listening was Julian illustrating?
- CORRECT ANSWES -- Response
Encouraging the expression of feelings as well as facts and following up with
employees on the problems they report are two ways that managers and supervisors
can - CORRECT ANSWES -- Cultivate two-way communication
Which one of the following risk management objectives is critical for a manufacturer
seeking new capital from investors, stockholders, and creditors? - CORRECT ANSWES
-- Reduce the deterrent effects of hazard risks
, Which one of the following is a tool that can be used by fraud investigators to compare
documents and analyze notes? - CORRECT ANSWES -- Text mining
For an organization, a key performance indicator (KPI) measures the performance of a
specific activity at a predetermined level or amount. Which one of the following is an
example of a KRI based on a ratio? - CORRECT ANSWES -- Inventory turnover
Before speaking with a group or individual, the speaker should think about what he or
she wants the other person(s) to do as a result of the conversation. Which one of the
following steps in the communication process does the speaker complete by doing this?
- CORRECT ANSWES -- Set a clear communication objective
Mid-State Packing Company, a meat processing company, is the largest private sector
employer in Metro City. First National Bank of Metro City loans money to Mid-State
Packaging Company and to many of the employees of Mid-State. The problem with
First National Bank of Metro City loaning money to both the business and many
employees of the business is that - CORRECT ANSWES -- Loan defaults are likely to
be highly correlated
Which one of the following statements is true with regard to preventative analytics? -
CORRECT ANSWES -- Preventative analytics uses smart products and data
analytics to identify root loss causes and their implications.
The emerging technologies applied to risk assessment and control link the physical
domain to the virtual domain. Together, these domains linked by the emerging
technologies create a - CORRECT ANSWES -- connected ecosystem
In addition to metal detector, many airports have installed a second type of scanning
technology for baggage and cargo. The checked bags and cargo pass through a portal
with scanners programmed to detect and test for explosive trace fumes. These
scanners, which detect explosives based on air samples, are an example of what type
of sensor used for risk assessment and control? - CORRECT ANSWES --
Biochemical sensors
Which one of the following uses infrared light to detect nearby objects? - CORRECT
ANSWES -- Lidar
SIR's use of drones, video, real-term video scanning, and computer analysis illustrates
which one of the following? - CORRECT ANSWES -- Preventative analytics
Which one of the following should be part of an organization's standard operating
procedures (SOPs) concerning external stakeholder communications? - CORRECT
ANSWES -- Instructions regarding what types of information can and cannot be
released
CHAPTERS!!!! QUESTIONS AND ANSWERS
WITH VERIFIED SOLUTIONS 100%
During the past year, International Toys has undertaken four capital projects. The
company has renovated and refurbished one of its aging warehouse buildings. It has
purchased the most recent version of its current order processing computer software. It
has added two trucks to its fleet of delivery vehicles. Lastly, it has purchased a new
production machine that will allow it to launch a new product line. Which one of the
following company projects is the most speculative risk? - CORRECT ANSWES --
The new production machine
According to the law of large numbers, as the number of exposure units insured
increases, - CORRECT ANSWES -- The relative accuracy of predictions about future
losses increases
The fundamental purpose of a risk management framework is to - CORRECT ANSWES
-- Integrate risk management throughout the organization
Which one of the following provides a measure of the maximum potential damage
associated with an occurrence? - CORRECT ANSWES -- Exposure
Aligning risks with the organization's risk appetite defines - CORRECT ANSWES --
Tolerable uncertainty
An organization must meet the standard of care that it owes to others in order to ensure
that - CORRECT ANSWES -- Legal obligations are satisfied
Julian was having a conversation with Tania, one of his employees. At this point, Julian
said, "What I hear you say is that you would like to take on more responsibility. Is that
correct?" Which one of the following elements of active listening was Julian illustrating?
- CORRECT ANSWES -- Response
Encouraging the expression of feelings as well as facts and following up with
employees on the problems they report are two ways that managers and supervisors
can - CORRECT ANSWES -- Cultivate two-way communication
Which one of the following risk management objectives is critical for a manufacturer
seeking new capital from investors, stockholders, and creditors? - CORRECT ANSWES
-- Reduce the deterrent effects of hazard risks
, Which one of the following is a tool that can be used by fraud investigators to compare
documents and analyze notes? - CORRECT ANSWES -- Text mining
For an organization, a key performance indicator (KPI) measures the performance of a
specific activity at a predetermined level or amount. Which one of the following is an
example of a KRI based on a ratio? - CORRECT ANSWES -- Inventory turnover
Before speaking with a group or individual, the speaker should think about what he or
she wants the other person(s) to do as a result of the conversation. Which one of the
following steps in the communication process does the speaker complete by doing this?
- CORRECT ANSWES -- Set a clear communication objective
Mid-State Packing Company, a meat processing company, is the largest private sector
employer in Metro City. First National Bank of Metro City loans money to Mid-State
Packaging Company and to many of the employees of Mid-State. The problem with
First National Bank of Metro City loaning money to both the business and many
employees of the business is that - CORRECT ANSWES -- Loan defaults are likely to
be highly correlated
Which one of the following statements is true with regard to preventative analytics? -
CORRECT ANSWES -- Preventative analytics uses smart products and data
analytics to identify root loss causes and their implications.
The emerging technologies applied to risk assessment and control link the physical
domain to the virtual domain. Together, these domains linked by the emerging
technologies create a - CORRECT ANSWES -- connected ecosystem
In addition to metal detector, many airports have installed a second type of scanning
technology for baggage and cargo. The checked bags and cargo pass through a portal
with scanners programmed to detect and test for explosive trace fumes. These
scanners, which detect explosives based on air samples, are an example of what type
of sensor used for risk assessment and control? - CORRECT ANSWES --
Biochemical sensors
Which one of the following uses infrared light to detect nearby objects? - CORRECT
ANSWES -- Lidar
SIR's use of drones, video, real-term video scanning, and computer analysis illustrates
which one of the following? - CORRECT ANSWES -- Preventative analytics
Which one of the following should be part of an organization's standard operating
procedures (SOPs) concerning external stakeholder communications? - CORRECT
ANSWES -- Instructions regarding what types of information can and cannot be
released
