ARM 400 END OF COURSE EXAM QUESTIONS AND
ANSWERS MARKED A+
✔✔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?
- ✔✔Set a clear communication objective
✔✔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 - ✔✔Loan defaults are likely to be highly correlated
✔✔Which one of the following statements is true with regard to preventative analytics? -
✔✔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 domains linked by the emerging
technologies create a - ✔✔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? - ✔✔Biochemical sensors
✔✔Which one of the following uses infrared light to detect nearby objects? - ✔✔Lidar
✔✔SIR's use of drones, video, real-term video scanning, and computer analysis
illustrates which one of the following? - ✔✔Preventative analytics
✔✔Which one of the following should be part of an organization's standard operating
procedures (SOPs) concerning external stakeholder communications? - ✔✔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? - ✔✔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 - ✔✔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? - ✔✔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 -
✔✔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 - ✔✔Social responsibility
✔✔Which one of the following types of risk is best handled at the risk center level? -
✔✔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? - ✔✔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 - ✔✔Allows for participation by operational managers who may contribute to the
risk analysis
✔✔An organization evaluates key stakeholders attitude toward risk in order to -
✔✔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? - ✔✔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? - ✔✔High customer retention
✔✔Which one of the following terms refers to information used as a basis for measuring
the significance of a risk? - ✔✔Risk criteria
✔✔Key risk indicators (KRIs) can be established for various levels within an
organization. Which one of the following levels of an organization usually has the most
detailed KRIs? - ✔✔Department level
ANSWERS MARKED A+
✔✔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?
- ✔✔Set a clear communication objective
✔✔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 - ✔✔Loan defaults are likely to be highly correlated
✔✔Which one of the following statements is true with regard to preventative analytics? -
✔✔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 domains linked by the emerging
technologies create a - ✔✔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? - ✔✔Biochemical sensors
✔✔Which one of the following uses infrared light to detect nearby objects? - ✔✔Lidar
✔✔SIR's use of drones, video, real-term video scanning, and computer analysis
illustrates which one of the following? - ✔✔Preventative analytics
✔✔Which one of the following should be part of an organization's standard operating
procedures (SOPs) concerning external stakeholder communications? - ✔✔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? - ✔✔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 - ✔✔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? - ✔✔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 -
✔✔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 - ✔✔Social responsibility
✔✔Which one of the following types of risk is best handled at the risk center level? -
✔✔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? - ✔✔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 - ✔✔Allows for participation by operational managers who may contribute to the
risk analysis
✔✔An organization evaluates key stakeholders attitude toward risk in order to -
✔✔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? - ✔✔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? - ✔✔High customer retention
✔✔Which one of the following terms refers to information used as a basis for measuring
the significance of a risk? - ✔✔Risk criteria
✔✔Key risk indicators (KRIs) can be established for various levels within an
organization. Which one of the following levels of an organization usually has the most
detailed KRIs? - ✔✔Department level
