ARM 400 Missed Practice exam Questions And Answers
2023
Which of the following risk management program goals is an essential goal for all
public entities?
Continuity of operations
The fundamental purpose of a risk management framework is to
Integrate risk management throughout the organization.
Which one of the following is a tool that can be used by fraud investigators to
compare documents and analyze notes?
Text mining
Samuel was recently hired as a risk management professional for Parker Property
Management. He has been asked by senior management to review the
organization's 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 one of the following through internal
communication before he will be able to complete this task?
Determine the organization's risk appetite
One enterprise risk management (ERM) approach to categorizing risks involves
dividing risks into four risk quadrants. The risks categorized as hazard risks are
Traditionally managed by risk management professionals.
Which one of the following provides a measure of the maximum potential damage
associated with an occurrence?
Exposure
When communicating a decision up the organization's chain of command,
consulting with outside experts can help a risk management professional do
which one of the following?
Enhance stakeholders' confidence in the process
The fundamental purpose of a risk management framework is to
Integrate risk management throughout the organization.
Risk can be classified as diversifiable or nondiversifiable. Which one of the
following statements is true with respect to this type of risk classification?
Diversifiable risks tend not to be correlated so they can be managed through
diversification or spread of risk.
According to the law of large numbers, as the number of exposure units insured
increases,
The relative accuracy of predictions about future losses increases.
An organization must meet the standard of care that it owes to others in order to
ensure that
Legal obligations are satisfied.
In an effort to grow its 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?
2023
Which of the following risk management program goals is an essential goal for all
public entities?
Continuity of operations
The fundamental purpose of a risk management framework is to
Integrate risk management throughout the organization.
Which one of the following is a tool that can be used by fraud investigators to
compare documents and analyze notes?
Text mining
Samuel was recently hired as a risk management professional for Parker Property
Management. He has been asked by senior management to review the
organization's 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 one of the following through internal
communication before he will be able to complete this task?
Determine the organization's risk appetite
One enterprise risk management (ERM) approach to categorizing risks involves
dividing risks into four risk quadrants. The risks categorized as hazard risks are
Traditionally managed by risk management professionals.
Which one of the following provides a measure of the maximum potential damage
associated with an occurrence?
Exposure
When communicating a decision up the organization's chain of command,
consulting with outside experts can help a risk management professional do
which one of the following?
Enhance stakeholders' confidence in the process
The fundamental purpose of a risk management framework is to
Integrate risk management throughout the organization.
Risk can be classified as diversifiable or nondiversifiable. Which one of the
following statements is true with respect to this type of risk classification?
Diversifiable risks tend not to be correlated so they can be managed through
diversification or spread of risk.
According to the law of large numbers, as the number of exposure units insured
increases,
The relative accuracy of predictions about future losses increases.
An organization must meet the standard of care that it owes to others in order to
ensure that
Legal obligations are satisfied.
In an effort to grow its 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?
