ARM 400 GOOD REVISION QUESTIONS
AND ANSWERS
Hardware Store has been able to control its prices and
inventory since it has no competitors. A new highway
currently being constructed is going to allow
increased competition for Hardware Store. According
to the quadrants of risk, this risk of increased
competition falls into the category of
Strategic risk.
Which one of the following is the inherent weakness
of root cause analysis (RCA)?
D. It can only look backward.
Metadata contains
A. Information about data as well as rules about that data.
When comparing principles-based regulation with
rules-based regulation, which one of the following
statements is correct?
D. Principles-based regulation responds more quickly to a
changing environment.
The lifeblood of every organizational function is
C. Data.
One of the key department players in compliance
program implementation is Internal Audit. As such,
the main responsibility of Internal Audit involves
which of the following?
B. Oversight of financial compliance
,Which one of the following best explains why the
audience should be known for effective enterprise risk
management (ERM) communication?
B. The communication must address the level of technical,
legal or financial understanding of the audience for the
message to be received.
Organizations use key risk indicators (KRIs) to plan
for and respond to risk. Which one of the following
statements is correct with respect to KRIs?
A. KRIs are based on quantifiable information and support
management decisions.
Which one of the following continuity strategy models
involves maintaining two or more active sites that are
geographically dispersed?
D. Split operations model
Emerging technologies such as artificial intelligence
and machine learning are being applied by some
businesses as part of their internal audit and control
process. A key benefit of such applications is
C. Detection of fraud and inefficient practices in real time
Which one of the following bases of organizational
culture are exhibited through the organization's goals
and the manner in which it pursues its goals?
C. Values
While risk management and internal audit have a
shared goal of managing organizational risks, risk
management and internal audit have traditionally been
separate. Which one of the following roles is the
responsibility of internal audit?
A. Checking the internal risk controls to ensure they are in
place and working
, Business process management (BPM) uses risk
indicators. Which one of the following best defines the
term "risk indicator"?
B. It is a tool used to measure the level of uncertainty in an
activity, project, or process.
An analysis of an organization's external
environments will help identify its
B. Opportunities and threats.
The Chief Compliance Officer's responsibilities
include all of the following, EXCEPT:
B. Being the legal expert on employment laws
One corporate governance issue is accountability of
directors. One method to increase accountability of
directors is to
C. Conduct regular meetings of outside directors without
management being present.
Electronic Components, Inc. manufactures circuit
boards, microchips, and other electronic products.
Given the precision necessary for their products, the
manufacturing environment must be controlled.
Temperature, humidity, static electricity and other
factors must be monitored. After losing several
batches of products due to human monitoring failures
and imprecise adjustments, the company moved to a
system of sensors. The sensors monitor and regulate
temperature, humidity, static electricity, and other
factors. The sensors transmit data to and from each
other, and the manufacturing environment is
continuously adjusted to assure production is
successful. The network of sensors transmitting data
AND ANSWERS
Hardware Store has been able to control its prices and
inventory since it has no competitors. A new highway
currently being constructed is going to allow
increased competition for Hardware Store. According
to the quadrants of risk, this risk of increased
competition falls into the category of
Strategic risk.
Which one of the following is the inherent weakness
of root cause analysis (RCA)?
D. It can only look backward.
Metadata contains
A. Information about data as well as rules about that data.
When comparing principles-based regulation with
rules-based regulation, which one of the following
statements is correct?
D. Principles-based regulation responds more quickly to a
changing environment.
The lifeblood of every organizational function is
C. Data.
One of the key department players in compliance
program implementation is Internal Audit. As such,
the main responsibility of Internal Audit involves
which of the following?
B. Oversight of financial compliance
,Which one of the following best explains why the
audience should be known for effective enterprise risk
management (ERM) communication?
B. The communication must address the level of technical,
legal or financial understanding of the audience for the
message to be received.
Organizations use key risk indicators (KRIs) to plan
for and respond to risk. Which one of the following
statements is correct with respect to KRIs?
A. KRIs are based on quantifiable information and support
management decisions.
Which one of the following continuity strategy models
involves maintaining two or more active sites that are
geographically dispersed?
D. Split operations model
Emerging technologies such as artificial intelligence
and machine learning are being applied by some
businesses as part of their internal audit and control
process. A key benefit of such applications is
C. Detection of fraud and inefficient practices in real time
Which one of the following bases of organizational
culture are exhibited through the organization's goals
and the manner in which it pursues its goals?
C. Values
While risk management and internal audit have a
shared goal of managing organizational risks, risk
management and internal audit have traditionally been
separate. Which one of the following roles is the
responsibility of internal audit?
A. Checking the internal risk controls to ensure they are in
place and working
, Business process management (BPM) uses risk
indicators. Which one of the following best defines the
term "risk indicator"?
B. It is a tool used to measure the level of uncertainty in an
activity, project, or process.
An analysis of an organization's external
environments will help identify its
B. Opportunities and threats.
The Chief Compliance Officer's responsibilities
include all of the following, EXCEPT:
B. Being the legal expert on employment laws
One corporate governance issue is accountability of
directors. One method to increase accountability of
directors is to
C. Conduct regular meetings of outside directors without
management being present.
Electronic Components, Inc. manufactures circuit
boards, microchips, and other electronic products.
Given the precision necessary for their products, the
manufacturing environment must be controlled.
Temperature, humidity, static electricity and other
factors must be monitored. After losing several
batches of products due to human monitoring failures
and imprecise adjustments, the company moved to a
system of sensors. The sensors monitor and regulate
temperature, humidity, static electricity, and other
factors. The sensors transmit data to and from each
other, and the manufacturing environment is
continuously adjusted to assure production is
successful. The network of sensors transmitting data
