ARM 400 TESTS FINAL PAPER 2026 SOLVED
QUESTIONS AND FULL SOLUTION UPDATED
◉ 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 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 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
, ◉ Which one of the following statements is correct regarding an
organizations code of ethics?
Answer: The code of ethics should include principles and concepts
that are dynamic enough to remain relevant in a rapidly changing
business environment
◉ One advantage that a national organization would derive from
creating risk centers is that it
Answer: Allows for participation by operational managers who may
contribute to the risk analysis
◉ An organization evaluates key stakeholders attitude toward risk
in order to
Answer: Understand what risks are acceptable and to develop an
effective enterprise-wide risk management program
◉ Which one of the following measures the progress an organization
has made toward attaining it's goals within a specific amount of
time?
Answer: Key performance indicator
◉ One of the strategic objectives for Cromley Insurance Group is
customer satisfaction. Which one of the following is a critical success
factor (CSF) that would help refine this strategic objective?
Answer: High customer retention
QUESTIONS AND FULL SOLUTION UPDATED
◉ 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 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 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
, ◉ Which one of the following statements is correct regarding an
organizations code of ethics?
Answer: The code of ethics should include principles and concepts
that are dynamic enough to remain relevant in a rapidly changing
business environment
◉ One advantage that a national organization would derive from
creating risk centers is that it
Answer: Allows for participation by operational managers who may
contribute to the risk analysis
◉ An organization evaluates key stakeholders attitude toward risk
in order to
Answer: Understand what risks are acceptable and to develop an
effective enterprise-wide risk management program
◉ Which one of the following measures the progress an organization
has made toward attaining it's goals within a specific amount of
time?
Answer: Key performance indicator
◉ One of the strategic objectives for Cromley Insurance Group is
customer satisfaction. Which one of the following is a critical success
factor (CSF) that would help refine this strategic objective?
Answer: High customer retention
