ARM 54 Chapter 5 Exam with complete
solutions 2024
Jancy yManufacturing yhas yexperienced yan yincrease yin yemployee yinjuries yover
ythe ylast ythree yyears. yJancy's yrisk ymanager yhas ymet ywith ythe yvarious
ystakeholders ythroughout ythe yorganization yand yhas ythe ysupport yof ysenior
ymanagement yto ydesign yand yimplement yrisk ymanagement yframework yand
yprocess. yWhich yone yof ythe yfollowing yindividuals ywould ybe ythe ybest yperson
yto ycommunicate yJancy's ycommitment yto yrisk ymanagement yand yemployee
ysafety? y- yANSWER✓✓-Chief yExecutive yOfficer
Which yone yof ythe yfollowing yis ydeveloped yto yevaluate ythe ysignificance yof
yrisk? y- yANSWER✓✓-Risk yCriteria
When yimplementing yan yenterprise yrisk ymanagement yprogram, yit yis ycommon
yto yperform ya ygap yanalysis. yGap yanalysis ycompares y- yANSWER✓✓-The
yorganization's yexisting yrisk ymanagement yframework yand yprocesses yagainst
ya yrecognized yrisk ymanagement ystandard.
Paula yjust ytook yover yas yrisk ymanager yof yAgri-Products yCompany. yThe
ycompany yproduces yagricultural ychemicals yand ybuys yand ysells yagricultural
ycommodities. yThe yprevious yrisk ymanager yhad yattempted yto yinstitute yan
yenterprise yrisk ymanagement yprogram yand yfailed. yOne yof yPaula's yfirst ymoves
ywas yto yformulate ya ymission ystatement yand ya ybullet-point ylist yof ythe
yorganization's yrisk ymanagement yphilosophy. yThis yclearly-stated ylist yof
yobjectives yand ystatements yof yhow ythe yobjectives ywill ybe yachieved yis ya y-
yANSWER✓✓-Risk yManagement ypolicy ystatement
Elliott yis ythe ynew yrisk ymanager yof yConsolidated yAgriculture yProducts. yThe
ycompany yhas ycorporate yfarms ythat ygrow ygrain yin ysix yMidwestern ystates.
yThe ycompany ytrades yfutures ycontracts yon ygrain yand yforeign ycurrencies. yIn
yan yeffort yto yestablish yaccountability yin ythe yenterprise yrisk ymanagement
yprogram yElliott yis yimplementing, yhe yis yusing yfinancial ymeasures yto
ydetermine ypotential ylosses yfrom yproperty ydamage, yliability yclaims, yfarming
yoperations, ygrain yfutures ytrading, ycurrency yfutures ytrading, yand yeach yof ythe
yother yloss yexposures ythe ycompany yfaces. yThese ymetrics yof ypotential ylosses
yare ycalled y- yANSWER✓✓-Key yRisk yindicators
solutions 2024
Jancy yManufacturing yhas yexperienced yan yincrease yin yemployee yinjuries yover
ythe ylast ythree yyears. yJancy's yrisk ymanager yhas ymet ywith ythe yvarious
ystakeholders ythroughout ythe yorganization yand yhas ythe ysupport yof ysenior
ymanagement yto ydesign yand yimplement yrisk ymanagement yframework yand
yprocess. yWhich yone yof ythe yfollowing yindividuals ywould ybe ythe ybest yperson
yto ycommunicate yJancy's ycommitment yto yrisk ymanagement yand yemployee
ysafety? y- yANSWER✓✓-Chief yExecutive yOfficer
Which yone yof ythe yfollowing yis ydeveloped yto yevaluate ythe ysignificance yof
yrisk? y- yANSWER✓✓-Risk yCriteria
When yimplementing yan yenterprise yrisk ymanagement yprogram, yit yis ycommon
yto yperform ya ygap yanalysis. yGap yanalysis ycompares y- yANSWER✓✓-The
yorganization's yexisting yrisk ymanagement yframework yand yprocesses yagainst
ya yrecognized yrisk ymanagement ystandard.
Paula yjust ytook yover yas yrisk ymanager yof yAgri-Products yCompany. yThe
ycompany yproduces yagricultural ychemicals yand ybuys yand ysells yagricultural
ycommodities. yThe yprevious yrisk ymanager yhad yattempted yto yinstitute yan
yenterprise yrisk ymanagement yprogram yand yfailed. yOne yof yPaula's yfirst ymoves
ywas yto yformulate ya ymission ystatement yand ya ybullet-point ylist yof ythe
yorganization's yrisk ymanagement yphilosophy. yThis yclearly-stated ylist yof
yobjectives yand ystatements yof yhow ythe yobjectives ywill ybe yachieved yis ya y-
yANSWER✓✓-Risk yManagement ypolicy ystatement
Elliott yis ythe ynew yrisk ymanager yof yConsolidated yAgriculture yProducts. yThe
ycompany yhas ycorporate yfarms ythat ygrow ygrain yin ysix yMidwestern ystates.
yThe ycompany ytrades yfutures ycontracts yon ygrain yand yforeign ycurrencies. yIn
yan yeffort yto yestablish yaccountability yin ythe yenterprise yrisk ymanagement
yprogram yElliott yis yimplementing, yhe yis yusing yfinancial ymeasures yto
ydetermine ypotential ylosses yfrom yproperty ydamage, yliability yclaims, yfarming
yoperations, ygrain yfutures ytrading, ycurrency yfutures ytrading, yand yeach yof ythe
yother yloss yexposures ythe ycompany yfaces. yThese ymetrics yof ypotential ylosses
yare ycalled y- yANSWER✓✓-Key yRisk yindicators
