ARM 400 Practice Exams - all chapters!!!!
High-Quality Questions with Expert
Answers With Detailed Explanations and
Answers Compiled by Global Authorities
According to the law of large numbers, as the number of exposure units insured increases, -
correct ans- -The relative accuracy of predictions about future losses increases
The fundamental purpose of a risk management framework is to - -correct ans- -Integrate risk
management throughout the organization
Which one of the following provides a measure of the maximum potential damage associated
with an occurrence? - -correct ans- -Exposure
Aligning risks with the organization's risk appetite defines - -correct ans- -Tolerable uncertainty
An organization must meet the standard of care that it owes to others in order to ensure that -
correct ans- -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 ans-
Response
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 ans- -The new production machine
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 ans- -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 ans- -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 ans- -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 ans- -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 ans- -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 ans- -
Loan defaults are likely to be highly correlated
, Which one of the following statements is true with regard to preventative analytics? - -correct
ans- -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 ans- -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 ans- -Biochemical sensors
Which one of the following uses infrared light to detect nearby objects? - -correct ans- -Lidar
SIR's use of drones, video, real-term video scanning, and computer analysis illustrates which one
of the following? - -correct ans- -Preventative analytics
Which one of the following should be part of an organization's standard operating procedures
(SOPs) concerning external stakeholder communications? - -correct ans- -Instructions regarding
what types of information can and cannot be released
When interviewing a risk owner, which one of the following questions should be asked? -
correct ans- -What steps have been taken to ensure continuity of business in the event of a
natural disaster?
A speaker imparts information in verbal communications by - -correct ans- -Having good listening
skills and expressing facts and emotions through words and sometimes visual displays
High-Quality Questions with Expert
Answers With Detailed Explanations and
Answers Compiled by Global Authorities
According to the law of large numbers, as the number of exposure units insured increases, -
correct ans- -The relative accuracy of predictions about future losses increases
The fundamental purpose of a risk management framework is to - -correct ans- -Integrate risk
management throughout the organization
Which one of the following provides a measure of the maximum potential damage associated
with an occurrence? - -correct ans- -Exposure
Aligning risks with the organization's risk appetite defines - -correct ans- -Tolerable uncertainty
An organization must meet the standard of care that it owes to others in order to ensure that -
correct ans- -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 ans-
Response
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 ans- -The new production machine
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 ans- -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 ans- -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 ans- -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 ans- -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 ans- -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 ans- -
Loan defaults are likely to be highly correlated
, Which one of the following statements is true with regard to preventative analytics? - -correct
ans- -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 ans- -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 ans- -Biochemical sensors
Which one of the following uses infrared light to detect nearby objects? - -correct ans- -Lidar
SIR's use of drones, video, real-term video scanning, and computer analysis illustrates which one
of the following? - -correct ans- -Preventative analytics
Which one of the following should be part of an organization's standard operating procedures
(SOPs) concerning external stakeholder communications? - -correct ans- -Instructions regarding
what types of information can and cannot be released
When interviewing a risk owner, which one of the following questions should be asked? -
correct ans- -What steps have been taken to ensure continuity of business in the event of a
natural disaster?
A speaker imparts information in verbal communications by - -correct ans- -Having good listening
skills and expressing facts and emotions through words and sometimes visual displays
