ARM 401 Exam Practice Exam (428 Questions) With 100 Complete Verified Solution-21

Which one of the following is a managerial control measure to protect against the frequency of fraud losses? A. Stay informed of new varieties of fraud B. Install surveillance cameras C. Place marked cash in vaults D. Screen potential applicants - A Directors and officers of a corporation have fiduciary duties, which include the duty of being A. Inquisitive. B. Honest. C. Loyal. D. Trustworthy. - C Cyber crime can be controlled through the use of effective loss prevention and loss reduction strategies. Which one of the following loss prevention strategies is considered the most effective against cyber criminals? A. Offsite data backup storage B. Virus protection software C. Controls and limitations on system access D. Encryption systems - C Ace is an electronics firm that manufactures small circuit boards that are used in cell phones. One of Ace's major customers is XYZ Phones, accounting for 70% of total sales for Ace each year. XYZ uses a just-in-time inventory system and orders circuit boards through an on-line system that creates a direct connection between XYZ and Ace. Last week, XYZ was subjected to a denial-of-service cyber attack which shut down XYTs computer system for several hours, which led to ordering delays that took - B A first party can incur network security liability when its database is breached if it damages a third party's network as a result of A. Content that infringes another party's trademark being placed on a website. B. Content that infringes another party's copyright being placed on a website. C. Libelous content being placed on a website. D. Malicious code being transmitted to the third party's network. - D As part of its assessment of its cyber risk, an organization should consider whether there are any intangible property exposures. Which one of the following would best be classified as an intangible property loss? A. The computer system is hacked and data including credit card numbers are stolen. B. There is a fire in the storage area which destroys the backup copy of the office computer system. C. Two disgruntled employees use the computer system to transfer offce funds into their own personal - A Henry filed a lawsuit against Stat University alleging the school failed to prevent unauthorized access to his academic records. Henry's lawsuit it based on A. Unauthorized interference. B. Invasion of privacy. C. Breach of contract. D. Assault and battery. - B Retention of cyber risk loss exposures A. Is a form of noninsurance risk transfer. B. Increases the likelihood of risk control. C. Is the only risk-financing technique available for first-party claims. D. Reduces the insured's financial uncertainty. - B Third parties in a cyber insurance transaction are typically A. The party whose database was breached. B. Customers of the first party. C. Customers of the second party. D. The insurer of the party whose database was breached. - B The unauthorized intrusion into a company's computer network resulting in damage to intellectual property is best classified as which one of the following types of cyber liability exposures? A. Loss of business income B. Loss of use C. Intangible property