ARM 400 - Segment B - Chapters 4, 5, & 6
Performance and Process Management, Risk
Governance, & Managing Risk Data Exam |
Questions with 100% Correct Answers | Verified |
Latest Update 2026/2027
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Terms in this set (79)
Which one of the following D. Members of the board elect a director to be
statements regarding the structure chairman of the board.
and role of a board of directors is
true?
Select one:
A. The board of directors must be
comprised of ten directors, with an
equal number of inside and outside
directors.
B. The board is responsible for the
day-to-day decisions at a
corporation.
C. Members of the board are
appointed by the president of the
company.
D. Members of the board elect a
director to be chairman of the board.
,Which one of the following A. The incentive for managers and non-
statements is true regarding management board members to pursue their own
separation of ownership and control interests at the expense of shareholders gives rise
in corporations? to agency costs.
Select one:
A. The incentive for managers and
non-management board members to
pursue their own interests at the
expense of shareholders gives rise
to agency costs.
B. Corporate governance is not
concerned with the separation of
ownership and control.
C. Shareholders retain decision-
making authority while managers
control business operations.
D. Limited liability of shareholders
impedes the separation of ownership
and control in corporations.
The board of directors must use a C. Risk appetite.
thorough understanding of the
organization's overall risk philosophy
to determine the amount of risk the
organization is willing to seek or
accept in the pursuit of long-term
objectives. This amount of risk is
called the organization's
Select one:
A. Maximum possible loss.
B. Retention level.
C. Risk appetite.
D. Probable maximum loss.
,Which one of the following B. Some board of directors delegate risk oversight
statements regarding corporate tasks to board committees, such as the audit
governance and risk oversight is committee, risk committee, and compensation
true? committee.
Select one:
A. Board oversight should be limited
to past history and current
conditions, and should avoid
consideration of uncertain future
events.
B. Some board of directors delegate
risk oversight tasks to board
committees, such as the audit
committee, risk committee, and
compensation committee.
C. Nonfinancial organizations are
subject to greater regulatory
pressure for transparency and astute
risk management than financial
organizations.
D. Corporate governance and risk
oversight have no impact on the
value of the organization.
, Which of the following statements C. To set the organization's risk appetite and to stay
best describes the risk governance informed of the most significant risks to the
role and responsibility of a corporate organization and management's responses.
board of directors?
Select one:
A. To establish risk management
policies, to define risk management
roles and responsibilities, and to set
risk management implementation
goals.
B. To convert strategy into
operational objectives and to
identify and assess the impact of
risks on the achievement of the
objectives
C. To set the organization's risk
appetite and to stay informed of the
most significant risks to the
organization and management's
responses.
D. To assign risk management
procedures for day-to-day functions
and internal controls.
Which one of the following B. Bonding costs
categories of agency costs is
assumed by managers?
Select one:
A. Advertising costs
B. Bonding costs
C. Incentive alignment costs
D. Monitoring costs
Performance and Process Management, Risk
Governance, & Managing Risk Data Exam |
Questions with 100% Correct Answers | Verified |
Latest Update 2026/2027
Save
Terms in this set (79)
Which one of the following D. Members of the board elect a director to be
statements regarding the structure chairman of the board.
and role of a board of directors is
true?
Select one:
A. The board of directors must be
comprised of ten directors, with an
equal number of inside and outside
directors.
B. The board is responsible for the
day-to-day decisions at a
corporation.
C. Members of the board are
appointed by the president of the
company.
D. Members of the board elect a
director to be chairman of the board.
,Which one of the following A. The incentive for managers and non-
statements is true regarding management board members to pursue their own
separation of ownership and control interests at the expense of shareholders gives rise
in corporations? to agency costs.
Select one:
A. The incentive for managers and
non-management board members to
pursue their own interests at the
expense of shareholders gives rise
to agency costs.
B. Corporate governance is not
concerned with the separation of
ownership and control.
C. Shareholders retain decision-
making authority while managers
control business operations.
D. Limited liability of shareholders
impedes the separation of ownership
and control in corporations.
The board of directors must use a C. Risk appetite.
thorough understanding of the
organization's overall risk philosophy
to determine the amount of risk the
organization is willing to seek or
accept in the pursuit of long-term
objectives. This amount of risk is
called the organization's
Select one:
A. Maximum possible loss.
B. Retention level.
C. Risk appetite.
D. Probable maximum loss.
,Which one of the following B. Some board of directors delegate risk oversight
statements regarding corporate tasks to board committees, such as the audit
governance and risk oversight is committee, risk committee, and compensation
true? committee.
Select one:
A. Board oversight should be limited
to past history and current
conditions, and should avoid
consideration of uncertain future
events.
B. Some board of directors delegate
risk oversight tasks to board
committees, such as the audit
committee, risk committee, and
compensation committee.
C. Nonfinancial organizations are
subject to greater regulatory
pressure for transparency and astute
risk management than financial
organizations.
D. Corporate governance and risk
oversight have no impact on the
value of the organization.
, Which of the following statements C. To set the organization's risk appetite and to stay
best describes the risk governance informed of the most significant risks to the
role and responsibility of a corporate organization and management's responses.
board of directors?
Select one:
A. To establish risk management
policies, to define risk management
roles and responsibilities, and to set
risk management implementation
goals.
B. To convert strategy into
operational objectives and to
identify and assess the impact of
risks on the achievement of the
objectives
C. To set the organization's risk
appetite and to stay informed of the
most significant risks to the
organization and management's
responses.
D. To assign risk management
procedures for day-to-day functions
and internal controls.
Which one of the following B. Bonding costs
categories of agency costs is
assumed by managers?
Select one:
A. Advertising costs
B. Bonding costs
C. Incentive alignment costs
D. Monitoring costs
