ARM 400 REVIEWED EXAM QUESTIONS
AND CORRECT ANSWERS
The big data revolution in risk management is fueled
by the capture, storage, and analysis of data. This
data capture is enabled primarily by _____
Smart products that sense their environment, process
data, and communicate with other smart products and
smart operations through the Internet of Things (IoT).
Examples of speculative risk
Investing in shares of stock
Initial public offerings
After being promoted to a supervisory position, Henry
decided that he needed to work on becoming an active
listener. All of the following are elements of active
listening, EXCEPT:
Introduction of new ideas
George has received an inheritance and is deciding
what to do with the money. He has limited his options
to four choices: donate all the money to his favorite
charity, use the entire inheritance to buy a yacht,
invest the inheritance in a small rental property, or
use the entire amount to purchase T-bills. Which one
of the following statements is true regarding the risk
involved in George's options?
The rental property presents both pure and speculative
risk; property values may increase, and the building could
burn down.
, Which one of the following provides a measure of the
maximum potential damage associated with an
occurrence?
Exposure
The fundamental purpose of a risk management
framework is to
Integrate risk management throughout the organization.
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
Which one of the following risk management
objectives is critical for a manufacturer seeking new
capital from investors, stockholders, and creditors?
Reduce the deterrent effects of hazard risks
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
Risk management professionals must collaborate with
data analysts during which two steps of the risk
management process?
Analyze risks and monitor risk treatments
AND CORRECT ANSWERS
The big data revolution in risk management is fueled
by the capture, storage, and analysis of data. This
data capture is enabled primarily by _____
Smart products that sense their environment, process
data, and communicate with other smart products and
smart operations through the Internet of Things (IoT).
Examples of speculative risk
Investing in shares of stock
Initial public offerings
After being promoted to a supervisory position, Henry
decided that he needed to work on becoming an active
listener. All of the following are elements of active
listening, EXCEPT:
Introduction of new ideas
George has received an inheritance and is deciding
what to do with the money. He has limited his options
to four choices: donate all the money to his favorite
charity, use the entire inheritance to buy a yacht,
invest the inheritance in a small rental property, or
use the entire amount to purchase T-bills. Which one
of the following statements is true regarding the risk
involved in George's options?
The rental property presents both pure and speculative
risk; property values may increase, and the building could
burn down.
, Which one of the following provides a measure of the
maximum potential damage associated with an
occurrence?
Exposure
The fundamental purpose of a risk management
framework is to
Integrate risk management throughout the organization.
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
Which one of the following risk management
objectives is critical for a manufacturer seeking new
capital from investors, stockholders, and creditors?
Reduce the deterrent effects of hazard risks
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
Risk management professionals must collaborate with
data analysts during which two steps of the risk
management process?
Analyze risks and monitor risk treatments
