ARM 400 EXAM 2025 | ACCURATE REAL EXAM CURRENTLY
TESTING AND FREQUETLY TESTED QUESTIONS AND ANSWERS
WITH RATIONALES | EXPERT VERIFIED FOR GUARANTEED
PASS | LATEST UPDATE
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?
A. Seek feedback from stakeholders
B. Stay focused on the organization's objectives
C. Define the organization's risk appetite
D. Enhance stakeholders' confidence in the process -
E. Answer--D
Which of the following risk management program goals is an essential goal for all
public entities?
A. Earning stability
B. Continuity of operations
C. Growth
D. Survival -
E. Answer--B
The traditional definition of risk management reflects the traditional concept of
risk as
A. Both positive and negative.
B. Negative.
C. Uncontrollable.
D. Strategic. -
E. Answer--B
During the past year, International Toys has undertaken four capital projects. The
company has renovated and refurbished one of its aging warehouse buildings. It
has purchased the most recent version of its current order processing computer
software. It has added two trucks to its fleet of delivery vehicles. Lastly, it has
purchased a new production machine that will allow it to launch a new product
line. Which one of the following company projects is the most speculative risk?
A. The two new trucks
B. The warehouse refurbishment
C. The software upgrade
D. The new production machine -
E. Answer--D
Which one of the following statements is true regarding the basic measures that
apply to risk management?
A. Consequences measure the degree to which an occurrence could positively or
negatively affect an organization.
B. Hedging is a risk management strategy that can reduce the risk of correlation.
C. Risk increases as volatility decreases.
D. Longer time horizons are generally less risky that shorter ones. -
E. Answer--A
,Which one of the following provides a measure of the maximum potential
damage associated with an occurrence?
A. Exposure
B. Duration
C. Underwriting risk
D. Maximum probable loss -
E. Answer--A
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?
A. Determine the organization's risk appetite
B. Identify all of the risks that the organization faces
C. Earn the confidence of the organization's board of directors
D. Become familiar with industry regulations -
E. Answer--A
Catastrophes such as recent earthquakes and the 2011 tsunami in Japan pointed
out a need for many organizations to evaluate and manage their
A. Supply-chain risk.
B. Derivative risk.
C. Compliance risk.
D. Political risk. -
E. Answer--A
Risk management professionals must collaborate with data analysts during which
two steps of the risk management process?
A. Treat risks and monitor risk treatments
B. Scan the environment and analyze risks
C. Analyze risks and monitor risk treatments
D. Identify risks and treat risks -
E. Answer--C
Asking a question such as "How do you think this will work out?" can help a
speaker do which one of the following?
A. Request feedback and determine if the message has been understood
B. Gain the support of executives and decision makers
C. Build trust among a diverse group of individuals
D. Deliver a message that recipients don't want to hear -
E. Answer--A
Carla, the risk manager, was asked by senior management to deliver a
presentation on cyber risk at an all employees meeting. Even though she was
only allotted 30 minutes for her presentation, Carla felt that cyber risk was a very
real risk for the corporation and she wanted employees to leave with some fear of
it. She wanted to provide employees with as much technical information as
possible, and familiarize them with all of the important jargon. Less than 20
minutes into her presentation, Carla could tell that many
,of the employees were not paying any attention to her presentation. Which one of
the following steps in the communication process had Carla failed to consider?
A. Pay attention to your body language
B. Ask for feedback
C. Analyze your audience
D. Set a clear communication objective -
E. Answer--C
Before speaking with a group or individual, the speaker should think about what
he or she wants the other person(s) to do as a result of the conversation. Which
one of the following steps in the communication process does the speaker
complete by doing this?
A. Deliver a message the recipient(s) want to hear
B. Set aside judgement
C. Set a clear communication objective
D. Analyze your audience -
E. Answer--C
Which one of the following risk management objectives is critical for a
manufacturer seeking new capital from investors, stockholders, and creditors?
A. Anticipate and recognize emerging risks
B. Social responsibility
C. Reduce the deterrent effects of hazard risks
D. Eliminate downside risk -
E. Answer--C
Which one of the following data capture tools has led to an explosion of risk
management innovation by allowing smart products to transmit data to each
other and to central hubs?
A. Blockchain
B. Cloud computing
C. Internet of Things
D. Artificial intelligence -
E. Answer--C
Jean is the Risk Manager for a Fortune 1000 company. Her CFO has tasked her to
analyze vulnerabilities in the firm's supply chain. The adequacy of suppliers to
meet an organization's needs would be an example of which one of the following
types of risk?
A. Financial risk
B. Strategic risk
C. Operating risk
D. Operational risk -
E. Answer--D
An organization must meet the standard of care that it owes to others in order to
ensure that
A. Legal obligations are satisfied.
B. Post-loss goals are in place.
C. Operations are efficient.
D. Contracts are not breached. -
, E. Answer--A
TESTING AND FREQUETLY TESTED QUESTIONS AND ANSWERS
WITH RATIONALES | EXPERT VERIFIED FOR GUARANTEED
PASS | LATEST UPDATE
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?
A. Seek feedback from stakeholders
B. Stay focused on the organization's objectives
C. Define the organization's risk appetite
D. Enhance stakeholders' confidence in the process -
E. Answer--D
Which of the following risk management program goals is an essential goal for all
public entities?
A. Earning stability
B. Continuity of operations
C. Growth
D. Survival -
E. Answer--B
The traditional definition of risk management reflects the traditional concept of
risk as
A. Both positive and negative.
B. Negative.
C. Uncontrollable.
D. Strategic. -
E. Answer--B
During the past year, International Toys has undertaken four capital projects. The
company has renovated and refurbished one of its aging warehouse buildings. It
has purchased the most recent version of its current order processing computer
software. It has added two trucks to its fleet of delivery vehicles. Lastly, it has
purchased a new production machine that will allow it to launch a new product
line. Which one of the following company projects is the most speculative risk?
A. The two new trucks
B. The warehouse refurbishment
C. The software upgrade
D. The new production machine -
E. Answer--D
Which one of the following statements is true regarding the basic measures that
apply to risk management?
A. Consequences measure the degree to which an occurrence could positively or
negatively affect an organization.
B. Hedging is a risk management strategy that can reduce the risk of correlation.
C. Risk increases as volatility decreases.
D. Longer time horizons are generally less risky that shorter ones. -
E. Answer--A
,Which one of the following provides a measure of the maximum potential
damage associated with an occurrence?
A. Exposure
B. Duration
C. Underwriting risk
D. Maximum probable loss -
E. Answer--A
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?
A. Determine the organization's risk appetite
B. Identify all of the risks that the organization faces
C. Earn the confidence of the organization's board of directors
D. Become familiar with industry regulations -
E. Answer--A
Catastrophes such as recent earthquakes and the 2011 tsunami in Japan pointed
out a need for many organizations to evaluate and manage their
A. Supply-chain risk.
B. Derivative risk.
C. Compliance risk.
D. Political risk. -
E. Answer--A
Risk management professionals must collaborate with data analysts during which
two steps of the risk management process?
A. Treat risks and monitor risk treatments
B. Scan the environment and analyze risks
C. Analyze risks and monitor risk treatments
D. Identify risks and treat risks -
E. Answer--C
Asking a question such as "How do you think this will work out?" can help a
speaker do which one of the following?
A. Request feedback and determine if the message has been understood
B. Gain the support of executives and decision makers
C. Build trust among a diverse group of individuals
D. Deliver a message that recipients don't want to hear -
E. Answer--A
Carla, the risk manager, was asked by senior management to deliver a
presentation on cyber risk at an all employees meeting. Even though she was
only allotted 30 minutes for her presentation, Carla felt that cyber risk was a very
real risk for the corporation and she wanted employees to leave with some fear of
it. She wanted to provide employees with as much technical information as
possible, and familiarize them with all of the important jargon. Less than 20
minutes into her presentation, Carla could tell that many
,of the employees were not paying any attention to her presentation. Which one of
the following steps in the communication process had Carla failed to consider?
A. Pay attention to your body language
B. Ask for feedback
C. Analyze your audience
D. Set a clear communication objective -
E. Answer--C
Before speaking with a group or individual, the speaker should think about what
he or she wants the other person(s) to do as a result of the conversation. Which
one of the following steps in the communication process does the speaker
complete by doing this?
A. Deliver a message the recipient(s) want to hear
B. Set aside judgement
C. Set a clear communication objective
D. Analyze your audience -
E. Answer--C
Which one of the following risk management objectives is critical for a
manufacturer seeking new capital from investors, stockholders, and creditors?
A. Anticipate and recognize emerging risks
B. Social responsibility
C. Reduce the deterrent effects of hazard risks
D. Eliminate downside risk -
E. Answer--C
Which one of the following data capture tools has led to an explosion of risk
management innovation by allowing smart products to transmit data to each
other and to central hubs?
A. Blockchain
B. Cloud computing
C. Internet of Things
D. Artificial intelligence -
E. Answer--C
Jean is the Risk Manager for a Fortune 1000 company. Her CFO has tasked her to
analyze vulnerabilities in the firm's supply chain. The adequacy of suppliers to
meet an organization's needs would be an example of which one of the following
types of risk?
A. Financial risk
B. Strategic risk
C. Operating risk
D. Operational risk -
E. Answer--D
An organization must meet the standard of care that it owes to others in order to
ensure that
A. Legal obligations are satisfied.
B. Post-loss goals are in place.
C. Operations are efficient.
D. Contracts are not breached. -
, E. Answer--A
