ARM 54 Practice Exam 2023/2024 with 100% complete solutions graded A+

Risks from accidental loss, including the possibility of loss or no loss defines Hazard risk The traditional definition of risk management reflects the traditional concept of risk as Negative Which one of the following statements is true regarding the evolution of risk and risk management? The definition of risk has evolved to include positive as well as negative attributes The Dodd-Frank Act, Solvency II, and Basel III all have the purpose of reducing Systemic risk Which one of the following is a common risk management benefit the entire economy would realize as a consequence of a risk management program? Reduced waste of resources-Risk management reduces waste of resources. Allocating resources for potential losses is a cost because the resources cannot be used for other purposes that could promote growth. To an insured organization, which one of the following is an example of a cost of risk associated with an asset or activity? Cost of sprinkler systems One benefit of risk management to the economy is the reduction of the potential for a major disruption in the functioning of financial markets and the financial system. This risk that is reduced is called Systemic risk