ARM 400 - ASSIGNMENT 1 PRACTICE QUESTIONS
AND ANSWERS
Aligning risks with the organizations risk appetite defines
A. Value at risk
B. Tolerable Uncertainty
C. Social Responsibility
D. Compliance - Answers - B. Tolerable Uncertainty
Fluctuations in the value of stocks or bonds due to interest rate changes is an example
of
A. Strategic risk.
B. Financial risk.
C. Operational risk.
D. Hazard risk. - Answers - B. Financial Risk
Risk managers today differ from traditional risk managers in which one of the following
ways?
A. They generally look backward for risk factors.
B. They attempt to identify a loss's predominant cause.
C. They attempt to minimize threats and optimize opportunities.
D. They struggle with data that is too large to capture, store, and analyze. - Answers -
C. They attempt to minimize threats and optimize opportunities.
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
Select one:
A. Maintain control of the conversation.
B. Cultivate two-way communication.
C. Support diverse groups.
D. Facilitate active listening. - Answers - B. Cultivate two-way communication.
Which of the following risk management program goals is an essential goal for all public
entities?
Select one:
A. Survival
B. Growth
C. Continuity of operations
D. Earning stability - Answers - C. Continuity of Operations
Which one of the following is one of the five steps of the risk management process?
Select one:
A. Scan environment
AND ANSWERS
Aligning risks with the organizations risk appetite defines
A. Value at risk
B. Tolerable Uncertainty
C. Social Responsibility
D. Compliance - Answers - B. Tolerable Uncertainty
Fluctuations in the value of stocks or bonds due to interest rate changes is an example
of
A. Strategic risk.
B. Financial risk.
C. Operational risk.
D. Hazard risk. - Answers - B. Financial Risk
Risk managers today differ from traditional risk managers in which one of the following
ways?
A. They generally look backward for risk factors.
B. They attempt to identify a loss's predominant cause.
C. They attempt to minimize threats and optimize opportunities.
D. They struggle with data that is too large to capture, store, and analyze. - Answers -
C. They attempt to minimize threats and optimize opportunities.
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
Select one:
A. Maintain control of the conversation.
B. Cultivate two-way communication.
C. Support diverse groups.
D. Facilitate active listening. - Answers - B. Cultivate two-way communication.
Which of the following risk management program goals is an essential goal for all public
entities?
Select one:
A. Survival
B. Growth
C. Continuity of operations
D. Earning stability - Answers - C. Continuity of Operations
Which one of the following is one of the five steps of the risk management process?
Select one:
A. Scan environment
