ARM 400 CORRECT TEST PAPER QUESTIONS AND
ANSWERS SET A+
✔✔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
✔✔Which one of the following statements is true regarding the business process
management (BPM) life cycle model? - ✔✔The model is driven by the collaboration of
human and technological input
✔✔The service representatives for Tauton Insurance will be eligible for a bonus only if
the customer retention rate is increased by 5%. This is an example of which of the
following standards? - ✔✔A corrective measure linked with an identified tolerance level
✔✔Carbon manufacturing company just hired a new chief risk officer and one of his first
tasks was to recommend updated key risk indicators to the chief executive officer. The
CEO was especially interested in KRIs measuring the company's profitability. One area
of measurement that the new CRO might want to use is - ✔✔Aged accounts receivable
✔✔Which one of the following answers the question, "What shows we are a success?" -
✔✔Key performance indicator
ANSWERS SET A+
✔✔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
✔✔Which one of the following statements is true regarding the business process
management (BPM) life cycle model? - ✔✔The model is driven by the collaboration of
human and technological input
✔✔The service representatives for Tauton Insurance will be eligible for a bonus only if
the customer retention rate is increased by 5%. This is an example of which of the
following standards? - ✔✔A corrective measure linked with an identified tolerance level
✔✔Carbon manufacturing company just hired a new chief risk officer and one of his first
tasks was to recommend updated key risk indicators to the chief executive officer. The
CEO was especially interested in KRIs measuring the company's profitability. One area
of measurement that the new CRO might want to use is - ✔✔Aged accounts receivable
✔✔Which one of the following answers the question, "What shows we are a success?" -
✔✔Key performance indicator
