ARM 400 Practice Exam Questions FR0M
ALL OVER THE WORLD From CERTIFIED
SOURCES Graded questions with answers
Which one of the following is an example of an internal key risk indicator (KRI) that a contractor
might monitor?
A. Cost of lumber
B. Interest rates
C. Availability of skilled labor
D. Budget variances - -correct ans- -D
One of the strategic objectives for Cromley Insurance Group is customer satisfaction. Which one
of the following is a critical success factor (CSF) that would help refine this strategic objective?
A. High profitability
B. Increase retention ratio by 5%
C. Reduce claim activity by 4 to 6%
D. High customer retention - -correct ans- -D
Which one of the following answers the question, "What shows we are a success?"
A. Risk tolerance level
B. Strategic objective
,C. Critical success factor
D. Key performance indicator - -correct ans- -D
Successful organizations have goals and objectives. A financial or nonfinancial measurement that
defines how successfully an organization is progressing toward its long-term goals is referred to
as
A. An objective gauge (OG).
B. A critical success factor (CSF).
C. A key performance indicator (KPI).
D. An operating standard (OS). - -correct ans- -C
An organization has established a key performance indicator to "reduce employee injuries by
6%." Which one of the following would indicate a low risk tolerance for this KPI?
A. Reduce employee injuries by 2%
B. Reduce employee injuries by 4%
C. Reduce employee injuries by 5 to 6%
D. Employee injury rate remains unchanged - -correct ans- -C
Which one of the following is a main characteristic of effective key risk indicators (KRIs)?
A. They define the boundaries of risk tolerance.
B. They are lagging in nature.
C. They are based on quantifiable information.
D. They measure progress toward achieving objectives. - -correct ans- -C
, One of the strategic objectives for Cromley Insurance Group is customer satisfaction. Which one
of the following is a critical success factor (CSF) that would help refine this strategic objective?
A. High customer retention
B. Reduce claim activity by 4 to 6%
C. Increase retention ratio by 5%
D. High profitability - -correct ans- -A
Which one of the following terms refers to information used as a basis for measuring the
significance of a risk?
A. Risk criteria
B. Risk tolerance
C. Risk appetite
D. Risk threshold - -correct ans- -A
Which one of the following is an example of an external key risk indicator (KRI) that a
manufacturer might monitor?
A. Amount of budget variances
B. Number of employee injuries
C. Age of accounts payable
D. Cost of raw materials - -correct ans- -D
Which one of the following measures the progress an organization has made toward attaining its
goals within a specific amount of time?
ALL OVER THE WORLD From CERTIFIED
SOURCES Graded questions with answers
Which one of the following is an example of an internal key risk indicator (KRI) that a contractor
might monitor?
A. Cost of lumber
B. Interest rates
C. Availability of skilled labor
D. Budget variances - -correct ans- -D
One of the strategic objectives for Cromley Insurance Group is customer satisfaction. Which one
of the following is a critical success factor (CSF) that would help refine this strategic objective?
A. High profitability
B. Increase retention ratio by 5%
C. Reduce claim activity by 4 to 6%
D. High customer retention - -correct ans- -D
Which one of the following answers the question, "What shows we are a success?"
A. Risk tolerance level
B. Strategic objective
,C. Critical success factor
D. Key performance indicator - -correct ans- -D
Successful organizations have goals and objectives. A financial or nonfinancial measurement that
defines how successfully an organization is progressing toward its long-term goals is referred to
as
A. An objective gauge (OG).
B. A critical success factor (CSF).
C. A key performance indicator (KPI).
D. An operating standard (OS). - -correct ans- -C
An organization has established a key performance indicator to "reduce employee injuries by
6%." Which one of the following would indicate a low risk tolerance for this KPI?
A. Reduce employee injuries by 2%
B. Reduce employee injuries by 4%
C. Reduce employee injuries by 5 to 6%
D. Employee injury rate remains unchanged - -correct ans- -C
Which one of the following is a main characteristic of effective key risk indicators (KRIs)?
A. They define the boundaries of risk tolerance.
B. They are lagging in nature.
C. They are based on quantifiable information.
D. They measure progress toward achieving objectives. - -correct ans- -C
, One of the strategic objectives for Cromley Insurance Group is customer satisfaction. Which one
of the following is a critical success factor (CSF) that would help refine this strategic objective?
A. High customer retention
B. Reduce claim activity by 4 to 6%
C. Increase retention ratio by 5%
D. High profitability - -correct ans- -A
Which one of the following terms refers to information used as a basis for measuring the
significance of a risk?
A. Risk criteria
B. Risk tolerance
C. Risk appetite
D. Risk threshold - -correct ans- -A
Which one of the following is an example of an external key risk indicator (KRI) that a
manufacturer might monitor?
A. Amount of budget variances
B. Number of employee injuries
C. Age of accounts payable
D. Cost of raw materials - -correct ans- -D
Which one of the following measures the progress an organization has made toward attaining its
goals within a specific amount of time?
