ARM 400 EXAM PRACTICE 2025 WITH COMPLETE
QUESTIONS AND CORRECT VERIFIED ANSWERS/
WELL GRADED A+//LATEST VERSION
Risk can be classified as diversifiable or no diversifiable. Which one of the following
statements is true with respect to this type of risk classification?
A. Diversifiable risks tend not to be correlated so they can be managed through
diversification or spread of risk.
B. Systemic risks are generally diversifiable.
C. Private insurance tends to concentrate on no diversifiable risks; government
insurance is often suitable for diversifiable risks.
D. Inflation, unemployment and natural disasters, such as hurricanes, are examples of
diversifiable risk. - CORRECT ANSWERS -A
The fundamental purpose of a risk management framework is to
A. Maximize profits for all stakeholders.
B. Integrate risk management throughout the organization.
C. Define and eliminate potential losses.
D. Reduce the cost of risk. - CORRECT ANSWERS -B
Which one of the following is one of the five steps of the risk management process?
A. Align and integrate
B. Establish accountability
C. Scan environment
D. Allocate resources - CORRECT ANSWERS -C
Which one of the following best explains how most smart products potentially improve
risk management?
A. They measure worker fatigue.
B. They scan and inspect structures for unsafe conditions.
C. They assess risks in dangerous areas.
D. They generate big data to which advanced analytics can be applied. - CORRECT
ANSWERS -D
Clear-Rite Company specializes in the clean-up of hazardous chemical spills. Workers
performing clean-up operations must use safety suits to prevent exposure to the
chemicals. The suits include pulse and respiration monitors, body temperature sensors,
and chemical sensors. The monitors and sensors report data to a mobile operations
center which is deployed to each clean-up site. The pulse and respiration monitors and
the sensors that are part of the protective gear are called
A. Magnetometers.
B. Drone technologies.
C. Wearable technologies.
,D. Accelerometers. - CORRECT ANSWERS -C
Data Entry Company (DEC) offers customers data entry services. A customer can hire
DEC to enter survey data to be analyzed. Many DEC employees spend long hours
entering data on a computer. DEC has experienced neck strain and wrist pain
complaints from their employees, increasing the company's workers compensation
costs. DEC investigated the complaints of its data-entry employees. DEC adopted
curved keyboards for data entry, wrist-rests for those entering data, and uniform chair
heights and display monitor heights to reduce neck strain claims. The science of
designing work spaces based on the health concerns of those who will operate in the
work space is called
A. Big data.
B. Accelerometer technology.
C. Predictive analytics.
D. Ergonomics. - CORRECT ANSWERS -D
Which one of the following statements about the use of drones is true?
A. The use of drones is limited to military applications.
B. Space and weight limitations prevent drones from being equipped with sensors and
cameras.
C. Drones may be equipped with cameras that relay data in real-time.
D. The reliance on humans to operate drones severely limits their application for
commercial uses. - CORRECT ANSWERS -C
Many auto manufacturers have automated a portion of their assembly lines by
introducing a smart product. The smart product performs repetitive tasks, such as
making the same weld on each vehicle frame as it passes the smart product. These
smart products, which can be fixed or mobile, reduce repetitive motion injuries that
humans might suffer. They can also be used to perform dangerous tasks and in heavy-
lifting jobs. These smart products are called
A. Wearables.
B. Automated sensors.
C. Robots.
D. Drones. - CORRECT ANSWERS -C
Take Your Order (TYO) is a company that specializes in taking product orders for
vendors. The manufacturer of a product can run a television or internet ad for a product
with a toll-free number. Customer calls for the products are routed to TYO, where one
hundred operators are available to receive the calls. Each operator is assigned a
cubicle with a computer terminal, video display monitor, and a telephone. TYO
experienced high workers compensation claims from its operators, claiming neck strain,
eye strain, and wrist pain. In an effort to reduce such injuries, TYO evaluated each
operator's work area. The height of chairs and video monitors were adjusted, curved
computer keyboards and wrist-rests were provided, and the telephones were replaced
with audio headsets. Workers compensation costs dropped significantly. The science of
,designing work spaces based on interaction between people and the equipment in the
work s - CORRECT ANSWERS -D
A municipal water plant installed water flow sensors and water pressure sensors on the
water pipes leaving the plant. The sensors make sure water is flowing properly and that
there are no leaks or clogs which could produce a loss. These types of sensors are
A. Thermal sensors.
B. Mechanical sensors.
C. Biochemical sensors.
D. Radiant sensors. - CORRECT ANSWERS -B
In addition to metal detectors, many airports have installed a second type of scanning
technology for checked baggage and cargo. The checked bags and cargo pass through
a portal with scanners programmed to detect and test for explosive trace fumes. These
scanners, which detect explosives based on air samples, are an example of what type
of sensor used for risk assessment and control?
A. Radiant sensors.
B. Thermal sensors.
C. Biochemical sensors.
D. Mechanical sensors. - CORRECT ANSWERS -C
AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina,
and Georgia. The company has compiled a policyowner data base that can be used to
send text messages when hurricanes approach. The company provides early warnings,
storm updates from the National Weather Service, and hurricane safety measures. The
company credits the system with reduced hurricane claims. The use of the texting
system is an example of
A. Preventive analytics.
B. Artificial intelligence.
C. Sensor networks.
D. Experience rating. - CORRECT ANSWERS -A
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC
Insurance Company decided to automate most of its personal lines underwriting
function. The company now uses standardized application forms that are submitted
electronically to one of the company's regional offices. At each regional office, a
computer with a scanner reads the applications. The computer has been programmed
with acceptable answers to the questions. If the answers on the application are all
acceptable, the policy is automatically issued. Rejected applications are automatically
forwarded to a human underwriter who reviews them. The use of this technology has
reduced the company's expense ratio by two and a half percent, and reduced the time it
takes to issue a policy. ABC Insurance Company's use of computers to evaluate
applications electronically is an application of
A. Radiant sensors.
B. Actuator technology.
C. Risk - CORRECT ANSWERS -D
, Autonomous Vehicle Applications (AVA) is a start-up company that develops safety
technologies that can be sold to companies that are producing autonomous vehicles.
One technology AVA is developing allows an autonomous vehicle to detect, extract, and
analyze images; and then to respond to the images. For example, the technology would
detect a presence in a crosswalk, extract the image, and a computer would analyze the
image. When the image was determined to be a human being, the vehicle would slow
down or stop until the crosswalk was clear. This technology, which is designed to
capture and analyze images, and to act on the recognition of the image; is called
A. Visual acuity.
B. Computer vision.
C. Accelerometer technology.
D. Transducer technology. - CORRECT ANSWERS -B
Which one of the following uses infrared light to detect nearby objects?
A. Wearables
B. Drones
C. Robots
D. Lidar - CORRECT ANSWERS -D
Last year, three Metro City firemen died responding to a fire at a chemical plant, when
they were overcome by toxic fumes. In response, Metro City is purchasing advanced
first responder gear. It includes special flame retardant suits with chemical and
explosive fume sensors, air quality sensors, and heat sensors. Responders will also
wear special watches that will track a responder's pulse, respiration, and blood
pressure; and helmets that include video cameras. All of these sensors will feed data to
a computer in real-time. The computer will analyze the data and issue threat levels and
evacuation orders, if necessary. The protective gear Metro City will purchase and the
data transmission and analysis capability illustrate the use of
A. Insurtech.
B. Smart products.
C. Risk management information systems.
D. Catastrophe modeling. - CORRECT ANSWERS -B
The emerging technologies applied to risk assessment and control link the physical
domain to the virtual domain. Together, these domains linked by the emerging
technologies create a
A. Connected ecosystem.
B. Risk management information system.
C. Smart system.
D. Risk management matrix. - CORRECT ANSWERS -A
Precision Electronic Components manufactures circuit boards, microchips, and other
electronic products. Given the precision necessary for their products, the manufacturing
environment must be controlled. Temperature, humidity, static electricity and other
factors must be monitored. After losing several batches of products due to human
QUESTIONS AND CORRECT VERIFIED ANSWERS/
WELL GRADED A+//LATEST VERSION
Risk can be classified as diversifiable or no diversifiable. Which one of the following
statements is true with respect to this type of risk classification?
A. Diversifiable risks tend not to be correlated so they can be managed through
diversification or spread of risk.
B. Systemic risks are generally diversifiable.
C. Private insurance tends to concentrate on no diversifiable risks; government
insurance is often suitable for diversifiable risks.
D. Inflation, unemployment and natural disasters, such as hurricanes, are examples of
diversifiable risk. - CORRECT ANSWERS -A
The fundamental purpose of a risk management framework is to
A. Maximize profits for all stakeholders.
B. Integrate risk management throughout the organization.
C. Define and eliminate potential losses.
D. Reduce the cost of risk. - CORRECT ANSWERS -B
Which one of the following is one of the five steps of the risk management process?
A. Align and integrate
B. Establish accountability
C. Scan environment
D. Allocate resources - CORRECT ANSWERS -C
Which one of the following best explains how most smart products potentially improve
risk management?
A. They measure worker fatigue.
B. They scan and inspect structures for unsafe conditions.
C. They assess risks in dangerous areas.
D. They generate big data to which advanced analytics can be applied. - CORRECT
ANSWERS -D
Clear-Rite Company specializes in the clean-up of hazardous chemical spills. Workers
performing clean-up operations must use safety suits to prevent exposure to the
chemicals. The suits include pulse and respiration monitors, body temperature sensors,
and chemical sensors. The monitors and sensors report data to a mobile operations
center which is deployed to each clean-up site. The pulse and respiration monitors and
the sensors that are part of the protective gear are called
A. Magnetometers.
B. Drone technologies.
C. Wearable technologies.
,D. Accelerometers. - CORRECT ANSWERS -C
Data Entry Company (DEC) offers customers data entry services. A customer can hire
DEC to enter survey data to be analyzed. Many DEC employees spend long hours
entering data on a computer. DEC has experienced neck strain and wrist pain
complaints from their employees, increasing the company's workers compensation
costs. DEC investigated the complaints of its data-entry employees. DEC adopted
curved keyboards for data entry, wrist-rests for those entering data, and uniform chair
heights and display monitor heights to reduce neck strain claims. The science of
designing work spaces based on the health concerns of those who will operate in the
work space is called
A. Big data.
B. Accelerometer technology.
C. Predictive analytics.
D. Ergonomics. - CORRECT ANSWERS -D
Which one of the following statements about the use of drones is true?
A. The use of drones is limited to military applications.
B. Space and weight limitations prevent drones from being equipped with sensors and
cameras.
C. Drones may be equipped with cameras that relay data in real-time.
D. The reliance on humans to operate drones severely limits their application for
commercial uses. - CORRECT ANSWERS -C
Many auto manufacturers have automated a portion of their assembly lines by
introducing a smart product. The smart product performs repetitive tasks, such as
making the same weld on each vehicle frame as it passes the smart product. These
smart products, which can be fixed or mobile, reduce repetitive motion injuries that
humans might suffer. They can also be used to perform dangerous tasks and in heavy-
lifting jobs. These smart products are called
A. Wearables.
B. Automated sensors.
C. Robots.
D. Drones. - CORRECT ANSWERS -C
Take Your Order (TYO) is a company that specializes in taking product orders for
vendors. The manufacturer of a product can run a television or internet ad for a product
with a toll-free number. Customer calls for the products are routed to TYO, where one
hundred operators are available to receive the calls. Each operator is assigned a
cubicle with a computer terminal, video display monitor, and a telephone. TYO
experienced high workers compensation claims from its operators, claiming neck strain,
eye strain, and wrist pain. In an effort to reduce such injuries, TYO evaluated each
operator's work area. The height of chairs and video monitors were adjusted, curved
computer keyboards and wrist-rests were provided, and the telephones were replaced
with audio headsets. Workers compensation costs dropped significantly. The science of
,designing work spaces based on interaction between people and the equipment in the
work s - CORRECT ANSWERS -D
A municipal water plant installed water flow sensors and water pressure sensors on the
water pipes leaving the plant. The sensors make sure water is flowing properly and that
there are no leaks or clogs which could produce a loss. These types of sensors are
A. Thermal sensors.
B. Mechanical sensors.
C. Biochemical sensors.
D. Radiant sensors. - CORRECT ANSWERS -B
In addition to metal detectors, many airports have installed a second type of scanning
technology for checked baggage and cargo. The checked bags and cargo pass through
a portal with scanners programmed to detect and test for explosive trace fumes. These
scanners, which detect explosives based on air samples, are an example of what type
of sensor used for risk assessment and control?
A. Radiant sensors.
B. Thermal sensors.
C. Biochemical sensors.
D. Mechanical sensors. - CORRECT ANSWERS -C
AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina,
and Georgia. The company has compiled a policyowner data base that can be used to
send text messages when hurricanes approach. The company provides early warnings,
storm updates from the National Weather Service, and hurricane safety measures. The
company credits the system with reduced hurricane claims. The use of the texting
system is an example of
A. Preventive analytics.
B. Artificial intelligence.
C. Sensor networks.
D. Experience rating. - CORRECT ANSWERS -A
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC
Insurance Company decided to automate most of its personal lines underwriting
function. The company now uses standardized application forms that are submitted
electronically to one of the company's regional offices. At each regional office, a
computer with a scanner reads the applications. The computer has been programmed
with acceptable answers to the questions. If the answers on the application are all
acceptable, the policy is automatically issued. Rejected applications are automatically
forwarded to a human underwriter who reviews them. The use of this technology has
reduced the company's expense ratio by two and a half percent, and reduced the time it
takes to issue a policy. ABC Insurance Company's use of computers to evaluate
applications electronically is an application of
A. Radiant sensors.
B. Actuator technology.
C. Risk - CORRECT ANSWERS -D
, Autonomous Vehicle Applications (AVA) is a start-up company that develops safety
technologies that can be sold to companies that are producing autonomous vehicles.
One technology AVA is developing allows an autonomous vehicle to detect, extract, and
analyze images; and then to respond to the images. For example, the technology would
detect a presence in a crosswalk, extract the image, and a computer would analyze the
image. When the image was determined to be a human being, the vehicle would slow
down or stop until the crosswalk was clear. This technology, which is designed to
capture and analyze images, and to act on the recognition of the image; is called
A. Visual acuity.
B. Computer vision.
C. Accelerometer technology.
D. Transducer technology. - CORRECT ANSWERS -B
Which one of the following uses infrared light to detect nearby objects?
A. Wearables
B. Drones
C. Robots
D. Lidar - CORRECT ANSWERS -D
Last year, three Metro City firemen died responding to a fire at a chemical plant, when
they were overcome by toxic fumes. In response, Metro City is purchasing advanced
first responder gear. It includes special flame retardant suits with chemical and
explosive fume sensors, air quality sensors, and heat sensors. Responders will also
wear special watches that will track a responder's pulse, respiration, and blood
pressure; and helmets that include video cameras. All of these sensors will feed data to
a computer in real-time. The computer will analyze the data and issue threat levels and
evacuation orders, if necessary. The protective gear Metro City will purchase and the
data transmission and analysis capability illustrate the use of
A. Insurtech.
B. Smart products.
C. Risk management information systems.
D. Catastrophe modeling. - CORRECT ANSWERS -B
The emerging technologies applied to risk assessment and control link the physical
domain to the virtual domain. Together, these domains linked by the emerging
technologies create a
A. Connected ecosystem.
B. Risk management information system.
C. Smart system.
D. Risk management matrix. - CORRECT ANSWERS -A
Precision Electronic Components manufactures circuit boards, microchips, and other
electronic products. Given the precision necessary for their products, the manufacturing
environment must be controlled. Temperature, humidity, static electricity and other
factors must be monitored. After losing several batches of products due to human
