ARM 400 EXAM 241 QUESTIONS WITH
VERIFIED
ANSWERS
◉ Which of the following risk management program goals is an
essential goal for all public entities?
A. Earning stability
B. Continuity of operations
C. Growth
D. Survival. Answer: B
◉ The traditional definition of risk management reflects the
traditional concept of risk as
A. Both positive and negative.
B. Negative.
C. Uncontrollable.
D. Strategic.. Answer: B
◉ During the past year, International Toys has undertaken four
capital projects. The company has renovated and refurbished one of
its aging warehouse buildings. It has purchased the most recent
version of its current order processing computer software. It has
added two trucks to its fleet of delivery vehicles. Lastly, it has
,purchased a new production machine that will allow it to launch a
new product line. Which one of the following company projects is
the most speculative risk?
A. The two new trucks
B. The warehouse refurbishment
C. The software upgrade
D. The new production machine. Answer: D
◉ Which one of the following statements is true regarding the basic
measures that apply to risk management?
A. Consequences measure the degree to which an occurrence could
positively or negatively affect an organization.
B. Hedging is a risk management strategy that can reduce the risk of
correlation.
C. Risk increases as volatility decreases.
D. Longer time horizons are generally less risky that shorter ones..
Answer: A
◉ Which one of the following provides a measure of the maximum
potential damage associated with an occurrence?
A. Exposure
B. Duration
C. Underwriting risk
D. Maximum probable loss. Answer: A
,◉ Samuel was recently hired as a risk management professional for
Parker Property Management. He has been asked by senior
management to review the organization's current insurance policies
to make sure that the organization is adequately protected, and also
see if there are any opportunities to save on the premiums. Samuel
must do which one of the following through internal communication
before he will be able to complete this task?
A. Determine the organization's risk appetite
B. Identify all of the risks that the organization faces
C. Earn the confidence of the organization's board of directors
D. Become familiar with industry regulations. Answer: A
◉ Catastrophes such as recent earthquakes and the 2011 tsunami in
Japan pointed out a need for many organizations to evaluate and
manage their
A. Supply-chain risk.
B. Derivative risk.
C. Compliance risk.
D. Political risk.. Answer: A
◉ Risk management professionals must collaborate with data
analysts during which two steps of the risk management process?
A. Treat risks and monitor risk treatments
, B. Scan the environment and analyze risks
C. Analyze risks and monitor risk treatments
D. Identify risks and treat risks. Answer: C
◉ Asking a question such as "How do you think this will work out?"
can help a speaker do which one of the following?
A. Request feedback and determine if the message has been
understood
B. Gain the support of executives and decision makers
C. Build trust among a diverse group of individuals
D. Deliver a message that recipients don't want to hear. Answer: A
◉ Carla, the risk manager, was asked by senior management to
deliver a presentation on cyber risk at an all employees meeting.
Even though she was only allotted 30 minutes for her presentation,
Carla felt that cyber risk was a very real risk for the corporation and
she wanted employees to leave with some fear of it. She wanted to
provide employees with as much technical information as possible,
and familiarize them with all of the important jargon. Less than 20
minutes into her presentation, Carla could tell that many of the
employees were not paying any attention to her presentation. Which
one of the following steps in the communication process had Carla
failed to consider?
A. Pay attention to your body language
B. Ask for feedback
VERIFIED
ANSWERS
◉ Which of the following risk management program goals is an
essential goal for all public entities?
A. Earning stability
B. Continuity of operations
C. Growth
D. Survival. Answer: B
◉ The traditional definition of risk management reflects the
traditional concept of risk as
A. Both positive and negative.
B. Negative.
C. Uncontrollable.
D. Strategic.. Answer: B
◉ During the past year, International Toys has undertaken four
capital projects. The company has renovated and refurbished one of
its aging warehouse buildings. It has purchased the most recent
version of its current order processing computer software. It has
added two trucks to its fleet of delivery vehicles. Lastly, it has
,purchased a new production machine that will allow it to launch a
new product line. Which one of the following company projects is
the most speculative risk?
A. The two new trucks
B. The warehouse refurbishment
C. The software upgrade
D. The new production machine. Answer: D
◉ Which one of the following statements is true regarding the basic
measures that apply to risk management?
A. Consequences measure the degree to which an occurrence could
positively or negatively affect an organization.
B. Hedging is a risk management strategy that can reduce the risk of
correlation.
C. Risk increases as volatility decreases.
D. Longer time horizons are generally less risky that shorter ones..
Answer: A
◉ Which one of the following provides a measure of the maximum
potential damage associated with an occurrence?
A. Exposure
B. Duration
C. Underwriting risk
D. Maximum probable loss. Answer: A
,◉ Samuel was recently hired as a risk management professional for
Parker Property Management. He has been asked by senior
management to review the organization's current insurance policies
to make sure that the organization is adequately protected, and also
see if there are any opportunities to save on the premiums. Samuel
must do which one of the following through internal communication
before he will be able to complete this task?
A. Determine the organization's risk appetite
B. Identify all of the risks that the organization faces
C. Earn the confidence of the organization's board of directors
D. Become familiar with industry regulations. Answer: A
◉ Catastrophes such as recent earthquakes and the 2011 tsunami in
Japan pointed out a need for many organizations to evaluate and
manage their
A. Supply-chain risk.
B. Derivative risk.
C. Compliance risk.
D. Political risk.. Answer: A
◉ Risk management professionals must collaborate with data
analysts during which two steps of the risk management process?
A. Treat risks and monitor risk treatments
, B. Scan the environment and analyze risks
C. Analyze risks and monitor risk treatments
D. Identify risks and treat risks. Answer: C
◉ Asking a question such as "How do you think this will work out?"
can help a speaker do which one of the following?
A. Request feedback and determine if the message has been
understood
B. Gain the support of executives and decision makers
C. Build trust among a diverse group of individuals
D. Deliver a message that recipients don't want to hear. Answer: A
◉ Carla, the risk manager, was asked by senior management to
deliver a presentation on cyber risk at an all employees meeting.
Even though she was only allotted 30 minutes for her presentation,
Carla felt that cyber risk was a very real risk for the corporation and
she wanted employees to leave with some fear of it. She wanted to
provide employees with as much technical information as possible,
and familiarize them with all of the important jargon. Less than 20
minutes into her presentation, Carla could tell that many of the
employees were not paying any attention to her presentation. Which
one of the following steps in the communication process had Carla
failed to consider?
A. Pay attention to your body language
B. Ask for feedback
