ARM 400 EXAM AND PRACTICE EXAM NEWEST ACTUAL
EXAM COMPLETE 300 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Provides a measure of the maximum potential damage associated with an
occurrence - ANSWER: exposure
________________ is an essential goal for all public entities - ANSWER: continuity of
operations
An organization must meet the standard of care that it owes to others in order to
ensure that... - ANSWER: legal obligations are satisfied
What are the five steps of the risk management process? - ANSWER: - scan
environment
- identify risk
- analyze risk
- treat risk
- monitor and review
Which one of the following statements is true regarding the evolution of risk and risk
management? - ANSWER: the definition of risk has evolved to include positive as
well as negative attributes
Risk management professionals must collaborate with data analysts during which
two steps of the risk management process? - ANSWER: analyze risk and monitor risk
treatments
Jane always drives to visit her children who live 1,000 miles away. She enjoys driving
and feels safer in a vehicle than on an airplane because she feels she has more
control of her fate. The driving versus flying decision is an example of: - ANSWER:
subjective risk
_______________ enhances an organizations reputation - ANSWER: social
responsibility
Samuel was recently hired as a risk management professional for Parker Property
Management. He has been asked by senior management to review the organizations
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 of the following through internal communication before he
will be able to complete the task? - ANSWER: determine the organizations risk
appetite
, Billy owns a beach front cottage which has become his primary residence. Billy's
primary concern is that his home will be hit by a hurricane and badly damaged or
even destroyed. For Billy, this hurricane risk is a... - ANSWER: subjective risk
Risk can be classified as subjective or objective. Which one of the following
statements is correct with respect to these risk classifications? - ANSWER: subjective
risk can exist even where objective risk does not
Asking a question such as "How do you think this will work out?" can help a speaker
do which of the following? - ANSWER: request feedback and determine if the
message has been understood
Which one of the following is an internal source that can often provide information
regarding risks that aren't obvious? - ANSWER: internal auditing
(the internal audit function can often provide information regarding risk that aren't
obvious, such as employees creating a risk by not adhering to certain processes)
The fundamental purpose of a risk management framework is to... - ANSWER:
integrate risk management throughout the organization
In an effort to grow 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? - ANSWER: Correlation
(think law of large numbers)
Which one of the following statements is true regarding the basic measures that
apply to risk management? - ANSWER: consequences measure the degree to which
an occurrence could positively or negatively affect an organization
The traditional definition of risk management reflects the traditional concept of risk
as ___________ - ANSWER: negative
Sets of data that are too large to be gathered and analyzed by traditional methods -
ANSWER: big data
An innovative item that uses sensors; wireless sensor networks; and data collection,
transmission, and analysis to further enable the item to be faster more useful, or
otherwise improved. - ANSWER: smart product
A network of objects that transmit data to and from each other without human
interaction. - ANSWER: internet of things
EXAM COMPLETE 300 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY
GRADED A+
Provides a measure of the maximum potential damage associated with an
occurrence - ANSWER: exposure
________________ is an essential goal for all public entities - ANSWER: continuity of
operations
An organization must meet the standard of care that it owes to others in order to
ensure that... - ANSWER: legal obligations are satisfied
What are the five steps of the risk management process? - ANSWER: - scan
environment
- identify risk
- analyze risk
- treat risk
- monitor and review
Which one of the following statements is true regarding the evolution of risk and risk
management? - ANSWER: the definition of risk has evolved to include positive as
well as negative attributes
Risk management professionals must collaborate with data analysts during which
two steps of the risk management process? - ANSWER: analyze risk and monitor risk
treatments
Jane always drives to visit her children who live 1,000 miles away. She enjoys driving
and feels safer in a vehicle than on an airplane because she feels she has more
control of her fate. The driving versus flying decision is an example of: - ANSWER:
subjective risk
_______________ enhances an organizations reputation - ANSWER: social
responsibility
Samuel was recently hired as a risk management professional for Parker Property
Management. He has been asked by senior management to review the organizations
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 of the following through internal communication before he
will be able to complete the task? - ANSWER: determine the organizations risk
appetite
, Billy owns a beach front cottage which has become his primary residence. Billy's
primary concern is that his home will be hit by a hurricane and badly damaged or
even destroyed. For Billy, this hurricane risk is a... - ANSWER: subjective risk
Risk can be classified as subjective or objective. Which one of the following
statements is correct with respect to these risk classifications? - ANSWER: subjective
risk can exist even where objective risk does not
Asking a question such as "How do you think this will work out?" can help a speaker
do which of the following? - ANSWER: request feedback and determine if the
message has been understood
Which one of the following is an internal source that can often provide information
regarding risks that aren't obvious? - ANSWER: internal auditing
(the internal audit function can often provide information regarding risk that aren't
obvious, such as employees creating a risk by not adhering to certain processes)
The fundamental purpose of a risk management framework is to... - ANSWER:
integrate risk management throughout the organization
In an effort to grow 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? - ANSWER: Correlation
(think law of large numbers)
Which one of the following statements is true regarding the basic measures that
apply to risk management? - ANSWER: consequences measure the degree to which
an occurrence could positively or negatively affect an organization
The traditional definition of risk management reflects the traditional concept of risk
as ___________ - ANSWER: negative
Sets of data that are too large to be gathered and analyzed by traditional methods -
ANSWER: big data
An innovative item that uses sensors; wireless sensor networks; and data collection,
transmission, and analysis to further enable the item to be faster more useful, or
otherwise improved. - ANSWER: smart product
A network of objects that transmit data to and from each other without human
interaction. - ANSWER: internet of things
