ARM 400 EXAMS SCRIPT SET QUESTIONS AND
ANSWERS SET A+
✔✔Delegating - Management Style - ✔✔management provides broad, strategic
direction, but lets stakeholders create their own method of attaining goals
✔✔Directive - Management Style - ✔✔Manages make most decisions and tell other
exactly what to do to achieve goals. Management limits the flow of information in the
interest of efficiency
✔✔Supportive - Management Style - ✔✔Management explains the rationale for goals
and decisions and encourages stakeholders to pursue related endeavors. Management
is open to feedback from others, and stakeholders may establish their own
communication networks.
✔✔Effective Risk Management Communication - ✔✔conveys a message clearly and
accurately to specific audiences.. Identifies audience level of understanding of the
concepts being communication and crafts the message to that level of understanding
✔✔Informal internal Communication Channels - ✔✔y skipping levels of management
when the message doesn't apply to them. However, the contents of a message
communicated through an informal channel need to be verified, as the message may
have skipped certain quality control stages in the communication process
✔✔Formal internal Communication Channel - ✔✔Formal channels usually follow the
organization's supervisory structure
✔✔Formal internal Communication Channel Advantages/ Disadvantages -
✔✔Advantages: everyone knows to whom they report, but in some cases, that can
become a disadvantage. If employees don't have direct access to everyone in the
organization, messages could be delayed or become distorted as they pass through the
communication lines.
, ✔✔Efficient External Communication - ✔✔To communicate efficiently with external
stakeholders, an organization must establish well-defined external communication
channels and procedures. The organization should have standard operating procedures
(SOPs) in place that provide instructions concerning appropriate external stakeholder
communications, including what types of information can and cannot be released.
✔✔Communication With Stakeholders - ✔✔Consistency in communications can boost
the effectiveness of a message.
✔✔Verbal communication with stakeholders - ✔✔Effective verbal communication
requires clear expression of facts, emotions, and suggestions or instructions—but the
speaker must also listen well. This is especially important when a decision related to a
highly uncertain situation requires the input of all stakeholders. An example of formal
verbal communication is a business presentation, which may also present data visually.
✔✔nonverbal communication with stakeholders - ✔✔Gestures, facial expressions, body
language, and tone of voice all play a role in communicating, even if the speaker does
not realize it.
✔✔Code of Ethics - ✔✔The minimum standards of expected behavior for those to
whom the code applies.
✔✔Social Responsibility - ✔✔An organization's duty to consider all of its stakeholders
and their needs before making a decision
✔✔governance - ✔✔set of parameters within which governments and organizations
operate and is less open to interpretation
✔✔Corporate Governance - ✔✔seeks to ensure that an organization's management
and board of directors operate with the best interests of the owners (stakeholders) in
mind
✔✔3 Types of agency costs & examples - ✔✔Monitoring (external auditor), bonding
(noncash compensation ie stock options) & Incentive alignment (being risk averse since
investment is tied to outcomes and vis versa)
✔✔Ways to reduce agency costs & examples - ✔✔Incentive Compensation ( managers
comp is ties to companies economic performance), legal liability ( can be held
personally liable for harm by their decision), management reputation ( develop a
reputation for being a bad manager) & takeover threat ( failed decisions to maximize
companies stock increases risks of being acquired)
ANSWERS SET A+
✔✔Delegating - Management Style - ✔✔management provides broad, strategic
direction, but lets stakeholders create their own method of attaining goals
✔✔Directive - Management Style - ✔✔Manages make most decisions and tell other
exactly what to do to achieve goals. Management limits the flow of information in the
interest of efficiency
✔✔Supportive - Management Style - ✔✔Management explains the rationale for goals
and decisions and encourages stakeholders to pursue related endeavors. Management
is open to feedback from others, and stakeholders may establish their own
communication networks.
✔✔Effective Risk Management Communication - ✔✔conveys a message clearly and
accurately to specific audiences.. Identifies audience level of understanding of the
concepts being communication and crafts the message to that level of understanding
✔✔Informal internal Communication Channels - ✔✔y skipping levels of management
when the message doesn't apply to them. However, the contents of a message
communicated through an informal channel need to be verified, as the message may
have skipped certain quality control stages in the communication process
✔✔Formal internal Communication Channel - ✔✔Formal channels usually follow the
organization's supervisory structure
✔✔Formal internal Communication Channel Advantages/ Disadvantages -
✔✔Advantages: everyone knows to whom they report, but in some cases, that can
become a disadvantage. If employees don't have direct access to everyone in the
organization, messages could be delayed or become distorted as they pass through the
communication lines.
, ✔✔Efficient External Communication - ✔✔To communicate efficiently with external
stakeholders, an organization must establish well-defined external communication
channels and procedures. The organization should have standard operating procedures
(SOPs) in place that provide instructions concerning appropriate external stakeholder
communications, including what types of information can and cannot be released.
✔✔Communication With Stakeholders - ✔✔Consistency in communications can boost
the effectiveness of a message.
✔✔Verbal communication with stakeholders - ✔✔Effective verbal communication
requires clear expression of facts, emotions, and suggestions or instructions—but the
speaker must also listen well. This is especially important when a decision related to a
highly uncertain situation requires the input of all stakeholders. An example of formal
verbal communication is a business presentation, which may also present data visually.
✔✔nonverbal communication with stakeholders - ✔✔Gestures, facial expressions, body
language, and tone of voice all play a role in communicating, even if the speaker does
not realize it.
✔✔Code of Ethics - ✔✔The minimum standards of expected behavior for those to
whom the code applies.
✔✔Social Responsibility - ✔✔An organization's duty to consider all of its stakeholders
and their needs before making a decision
✔✔governance - ✔✔set of parameters within which governments and organizations
operate and is less open to interpretation
✔✔Corporate Governance - ✔✔seeks to ensure that an organization's management
and board of directors operate with the best interests of the owners (stakeholders) in
mind
✔✔3 Types of agency costs & examples - ✔✔Monitoring (external auditor), bonding
(noncash compensation ie stock options) & Incentive alignment (being risk averse since
investment is tied to outcomes and vis versa)
✔✔Ways to reduce agency costs & examples - ✔✔Incentive Compensation ( managers
comp is ties to companies economic performance), legal liability ( can be held
personally liable for harm by their decision), management reputation ( develop a
reputation for being a bad manager) & takeover threat ( failed decisions to maximize
companies stock increases risks of being acquired)
