ARM 400 Exam Practice Exam with Questions and Answers – 100% Solved
A big-box store recently moved into a small town where mom and pop shops flourished for
years. Knowing there could be some negative backlash from the long time loyal residents, the
big-box store's executives went through the framework of managing their reputational risk to
try to lessen any perceived negativity. The executives believed there are four key steps in
handling reputational risk that are measuring, monitoring, managing and mitigating.
Understanding that each step is critical to the ov - ✔✔✔-C
A business impact analysis (BIA) should identify the points in time when the interruption would
have the greatest impact, what the operational impact would be, and
A. Who should be on the recovery team.
B. Whether the exposures are external, internal, or project.
C. What continuity strategy to use.
D. What the financial impact would be. - ✔✔✔-D
A corporate board of director's chair person is elected by
A. The board of directors.
B. The shareholders.
C. Executive management.
D. Proxies. - ✔✔✔-A
A data governance committee (DGC)
A. Is cross-functional.
B. Cleanses big data.
C. Reports to risk management.
D. Is comprised of IT architects. - ✔✔✔-A
A holistic approach that allows companies to better withstand short-term shocks and help
ensure long-term business viability is known as
,ARM 400 Exam Practice Exam with Questions and Answers – 100% Solved
A. Organizational resiliency.
B. Business process management.
C. Strategic redeployment plan.
D. Preparedness planning - ✔✔✔-A
A municipal water plant installed water flow sensors and water pressure sensors on the water
pipes leaving the plant. The sensors make sure water is flowing properly and that there are no
leaks or clogs which could produce a loss. These types of sensors are
A. Thermal sensors.
B. Mechanical sensors.
C. Biochemical sensors.
D. Radiant sensors. - ✔✔✔-B
A privacy impact assessment (PIA) is
A. A tool used to identify and assess privacy risks.
B. An example of metadata that defines key data attributes.
C. A collaborative tool that facilitates workflows.
D. Proprietary software used to detect malware. - ✔✔✔-A
A risk management professional is identifying the organization's key stakeholders as part of the
enterprise risk management program. Which one of the following would be considered an
internal stakeholder?
A. Unions
B. Suppliers
C. General public
D. Stockholders - ✔✔✔-D
,ARM 400 Exam Practice Exam with Questions and Answers – 100% Solved
A risk-based auditing approach is deemed to be a top-down approach because
A. It involves an external review of known potential threats to the organization and then
developing an organizational response to those threats.
B. It involves review of each department's dependence on financial controls, compliance with
federal statutes and audit history.
C. It involves review of the current financial controls and compliance to regulations as
determined by external auditors.
D. It involves identifying a - ✔✔✔-D
A speaker imparts information in verbal communications by
A. Using appropriate facial expressions and gestures while other parties express their opinions
and concerns.
B. Expressing facts and emotions quickly, inviting written questions for discussion at a future
session.
C. Having good listening skills and expressing facts and emotions through words and sometimes
visual displays.
D. Listening and verbally responding with anecdotes of prior meetings, leveraging humor as
opposed to facts for disc - ✔✔✔-C
A vehicle manufacturer found that the exhaust system in certain models was not working
properly. Some exhaust gases were releasing into the vehicle body. Rather than recalling the
vehicles, they were shipped to South American markets. The manufacturer
A. Is socially responsible because it shipped the vehicles out of the country thereby avoiding any
US casualties.
B. Is socially responsible because it does not force any individual to buy the vehicle.
C. Has ignored its social responsibility as we - ✔✔✔-C
According to the law of large numbers, as the number of exposure units insured increases,
A. Fewer losses are expected to occur.
, ARM 400 Exam Practice Exam with Questions and Answers – 100% Solved
B. The size of the average loss declines.
C. The relative accuracy of predictions about future losses increases.
D. The probability of an underwriting loss increases. - ✔✔✔-C
After opening its third store, Shoehorn Shoes decided to purchase new inventory tracking
software for all of its stores. Which one of the following external or internal environments does
this decision relate to?
A. Economic environment
B. Physical environment
C. Product environment
D. Operations environment - ✔✔✔-D
After opening its third store, Shoehorn Shoes decided to purchase new inventory tracking
software for all of its stores. Which one of the following external or internal environments does
this decision relate to?
A. Operations environment
B. Physical environment
C. Economic environment
D. Product environment - ✔✔✔-A
Aligning risks with the organization's risk appetite defines
A. Social responsibility.
B. Tolerable uncertainty.
C. Compliance.
D. Value at risk. - ✔✔✔-B
All of the following are true regarding the composition of boards of directors, EXCEPT:
A big-box store recently moved into a small town where mom and pop shops flourished for
years. Knowing there could be some negative backlash from the long time loyal residents, the
big-box store's executives went through the framework of managing their reputational risk to
try to lessen any perceived negativity. The executives believed there are four key steps in
handling reputational risk that are measuring, monitoring, managing and mitigating.
Understanding that each step is critical to the ov - ✔✔✔-C
A business impact analysis (BIA) should identify the points in time when the interruption would
have the greatest impact, what the operational impact would be, and
A. Who should be on the recovery team.
B. Whether the exposures are external, internal, or project.
C. What continuity strategy to use.
D. What the financial impact would be. - ✔✔✔-D
A corporate board of director's chair person is elected by
A. The board of directors.
B. The shareholders.
C. Executive management.
D. Proxies. - ✔✔✔-A
A data governance committee (DGC)
A. Is cross-functional.
B. Cleanses big data.
C. Reports to risk management.
D. Is comprised of IT architects. - ✔✔✔-A
A holistic approach that allows companies to better withstand short-term shocks and help
ensure long-term business viability is known as
,ARM 400 Exam Practice Exam with Questions and Answers – 100% Solved
A. Organizational resiliency.
B. Business process management.
C. Strategic redeployment plan.
D. Preparedness planning - ✔✔✔-A
A municipal water plant installed water flow sensors and water pressure sensors on the water
pipes leaving the plant. The sensors make sure water is flowing properly and that there are no
leaks or clogs which could produce a loss. These types of sensors are
A. Thermal sensors.
B. Mechanical sensors.
C. Biochemical sensors.
D. Radiant sensors. - ✔✔✔-B
A privacy impact assessment (PIA) is
A. A tool used to identify and assess privacy risks.
B. An example of metadata that defines key data attributes.
C. A collaborative tool that facilitates workflows.
D. Proprietary software used to detect malware. - ✔✔✔-A
A risk management professional is identifying the organization's key stakeholders as part of the
enterprise risk management program. Which one of the following would be considered an
internal stakeholder?
A. Unions
B. Suppliers
C. General public
D. Stockholders - ✔✔✔-D
,ARM 400 Exam Practice Exam with Questions and Answers – 100% Solved
A risk-based auditing approach is deemed to be a top-down approach because
A. It involves an external review of known potential threats to the organization and then
developing an organizational response to those threats.
B. It involves review of each department's dependence on financial controls, compliance with
federal statutes and audit history.
C. It involves review of the current financial controls and compliance to regulations as
determined by external auditors.
D. It involves identifying a - ✔✔✔-D
A speaker imparts information in verbal communications by
A. Using appropriate facial expressions and gestures while other parties express their opinions
and concerns.
B. Expressing facts and emotions quickly, inviting written questions for discussion at a future
session.
C. Having good listening skills and expressing facts and emotions through words and sometimes
visual displays.
D. Listening and verbally responding with anecdotes of prior meetings, leveraging humor as
opposed to facts for disc - ✔✔✔-C
A vehicle manufacturer found that the exhaust system in certain models was not working
properly. Some exhaust gases were releasing into the vehicle body. Rather than recalling the
vehicles, they were shipped to South American markets. The manufacturer
A. Is socially responsible because it shipped the vehicles out of the country thereby avoiding any
US casualties.
B. Is socially responsible because it does not force any individual to buy the vehicle.
C. Has ignored its social responsibility as we - ✔✔✔-C
According to the law of large numbers, as the number of exposure units insured increases,
A. Fewer losses are expected to occur.
, ARM 400 Exam Practice Exam with Questions and Answers – 100% Solved
B. The size of the average loss declines.
C. The relative accuracy of predictions about future losses increases.
D. The probability of an underwriting loss increases. - ✔✔✔-C
After opening its third store, Shoehorn Shoes decided to purchase new inventory tracking
software for all of its stores. Which one of the following external or internal environments does
this decision relate to?
A. Economic environment
B. Physical environment
C. Product environment
D. Operations environment - ✔✔✔-D
After opening its third store, Shoehorn Shoes decided to purchase new inventory tracking
software for all of its stores. Which one of the following external or internal environments does
this decision relate to?
A. Operations environment
B. Physical environment
C. Economic environment
D. Product environment - ✔✔✔-A
Aligning risks with the organization's risk appetite defines
A. Social responsibility.
B. Tolerable uncertainty.
C. Compliance.
D. Value at risk. - ✔✔✔-B
All of the following are true regarding the composition of boards of directors, EXCEPT:
