ARM 402 Ch 7-9 Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
1) People 2) Process 3) Four classifications of operational
Systems 4) External events risk
The degree of importance a Control environment
board of directors and
management place on their
organizations internal control
system and their related
actions
- Approvals and Preventative controls
authorizations-Segregation of
duties-Safeguarding assets
- Reconciliations-Safeguarding Detective controls
assets
An approach to project Frameworks
planning and execution in
which portions of the project
are divided by requirements or
problem statements and
addressed separately, but in a
way that will integrate
Receives cash from an Special Purpose Vehicle (SPV)
organization in exchange for
, the promise to pay any losses
that occur
- - also obtains funds from
investors, which are then used
to pay for potential losses
The risk that the amount the Basis risk
organization receives to offset
its losses may be greater than
or less than its actual losses
An option to buy a set amount Call option
of the underlying security at
any time within a specified
period
An option giving the holder the Put option
right to sell a set amount of
the underlying security at any
time within a specified period
An agreement between two Swap
organizations to exchange
payments based on changes in
the value of an asset, yield, or
index over a specific period
Written instruments Securities
representing either money or
other property, such as stocks
and bonds
Answers with Verified Solutions | Latest
Updated 2026
1) People 2) Process 3) Four classifications of operational
Systems 4) External events risk
The degree of importance a Control environment
board of directors and
management place on their
organizations internal control
system and their related
actions
- Approvals and Preventative controls
authorizations-Segregation of
duties-Safeguarding assets
- Reconciliations-Safeguarding Detective controls
assets
An approach to project Frameworks
planning and execution in
which portions of the project
are divided by requirements or
problem statements and
addressed separately, but in a
way that will integrate
Receives cash from an Special Purpose Vehicle (SPV)
organization in exchange for
, the promise to pay any losses
that occur
- - also obtains funds from
investors, which are then used
to pay for potential losses
The risk that the amount the Basis risk
organization receives to offset
its losses may be greater than
or less than its actual losses
An option to buy a set amount Call option
of the underlying security at
any time within a specified
period
An option giving the holder the Put option
right to sell a set amount of
the underlying security at any
time within a specified period
An agreement between two Swap
organizations to exchange
payments based on changes in
the value of an asset, yield, or
index over a specific period
Written instruments Securities
representing either money or
other property, such as stocks
and bonds
