1|Page
ARM 400 Risk in an Evolving World 2025 Latest
Exam 200 Questions and Correct Detailed
Answers with Rationales / ARM 400 Exam
Practice Test Bank
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 - ..........ANSWER.......Loan
defaults are likely to be highly correlated
Which one of the following statements is true with regard to
preventative analytics? - ..........ANSWER.......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
,2|Page
domains linked by the emerging technologies create a -
..........ANSWER.......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? -
..........ANSWER.......Biochemical sensors
Which one of the following uses infrared light to detect nearby
objects? - ..........ANSWER.......Lidar
SIR's use of drones, video, real-term video scanning, and computer
analysis illustrates which one of the following? -
..........ANSWER.......Preventative analytics
Which one of the following should be part of an organization's
standard operating procedures (SOPs) concerning external
stakeholder communications? - ..........ANSWER.......Instructions
,3|Page
regarding what types of information can and cannot be
released
When interviewing a risk owner, which one of the following
questions should be asked? - ..........ANSWER.......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 -
..........ANSWER.......Having good listening skills and expressing
facts and emotions through words and sometimes visual
displays
Which one of the following organizational policies or practices is
based on a code of ethics? - ..........ANSWER.......A disclosure
requirement regarding any potential conflict of interest an
accountant might have in working with specific clients
An organization evaluates key stakeholders' attitude toward risk in
order to - ..........ANSWER.......Understand what risks are
, 4|Page
acceptable and to develop an effective enterprise-wide risk
management program
Twice a year, Medford Factory gives employees a day off to work in
the community where the factory is located. The employees prepare
and serve a holiday meal for members of the community, and they
clean the neighborhood park in the spring. This practice is based on
Medford Factory's - ..........ANSWER.......Social responsibility
Which one of the following types of risk is best handled at the risk
center level? - ..........ANSWER.......Minor risks that do not have
consequences outside the unit are best managed at the risk
center level
According to the law of large numbers, as the number of exposure
units insured increases, - ..........ANSWER.......The relative accuracy
of predictions about future losses increases
ARM 400 Risk in an Evolving World 2025 Latest
Exam 200 Questions and Correct Detailed
Answers with Rationales / ARM 400 Exam
Practice Test Bank
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 - ..........ANSWER.......Loan
defaults are likely to be highly correlated
Which one of the following statements is true with regard to
preventative analytics? - ..........ANSWER.......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
,2|Page
domains linked by the emerging technologies create a -
..........ANSWER.......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? -
..........ANSWER.......Biochemical sensors
Which one of the following uses infrared light to detect nearby
objects? - ..........ANSWER.......Lidar
SIR's use of drones, video, real-term video scanning, and computer
analysis illustrates which one of the following? -
..........ANSWER.......Preventative analytics
Which one of the following should be part of an organization's
standard operating procedures (SOPs) concerning external
stakeholder communications? - ..........ANSWER.......Instructions
,3|Page
regarding what types of information can and cannot be
released
When interviewing a risk owner, which one of the following
questions should be asked? - ..........ANSWER.......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 -
..........ANSWER.......Having good listening skills and expressing
facts and emotions through words and sometimes visual
displays
Which one of the following organizational policies or practices is
based on a code of ethics? - ..........ANSWER.......A disclosure
requirement regarding any potential conflict of interest an
accountant might have in working with specific clients
An organization evaluates key stakeholders' attitude toward risk in
order to - ..........ANSWER.......Understand what risks are
, 4|Page
acceptable and to develop an effective enterprise-wide risk
management program
Twice a year, Medford Factory gives employees a day off to work in
the community where the factory is located. The employees prepare
and serve a holiday meal for members of the community, and they
clean the neighborhood park in the spring. This practice is based on
Medford Factory's - ..........ANSWER.......Social responsibility
Which one of the following types of risk is best handled at the risk
center level? - ..........ANSWER.......Minor risks that do not have
consequences outside the unit are best managed at the risk
center level
According to the law of large numbers, as the number of exposure
units insured increases, - ..........ANSWER.......The relative accuracy
of predictions about future losses increases
