ARM 400 PRACTICE EXAM QUESTIONS AND ANSWERS (VERIFIED
ARM 400 Practice Exams - all chapters!!!!
ANSWERS) LATEST UPDATE 2025/2026
Study online at https://quizlet.com/_a1xyog
1. According to the law of large numbers, as the number The relative accuracy of
of exposure units insured increases, predictions about future
losses increases
2. The fundamental purpose of a risk management Integrate risk manage-
framework is to ment throughout the or-
ganization
3. Which one of the following provides a measure of Exposure
the maximum potential damage associated with an
occurrence?
4. Aligning risks with the organization's risk appetite de- Tolerable uncertainty
fines
5. An organization must meet the standard of care that Legal obligations are sat-
it owes to others in order to ensure that isfied
6. Julian was having a conversation with Tania, one of Response
his employees. At this point, Julian said, "What I hear
you say is that you would like to take on more respon-
sibility. Is that correct?" Which one of the following
elements of active listening was Julian illustrating?
7. During the past year, International Toys has undertak- The new production ma-
en four capital projects. The company has renovated chine
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
, ARM 400 Practice Exams - all chapters!!!!
Study online at https://quizlet.com/_a1xyog
following company projects is the most speculative
risk?
8. Encouraging the expression of feelings as well as facts Cultivate two-way com-
and following up with employees on the problems munication
they report are two ways that managers and supervi-
sors can
9. Which one of the following risk management objec- Reduce the deterrent ef-
tives is critical for a manufacturer seeking new capital fects of hazard risks
from investors, stockholders, and creditors?
10. Which one of the following is a tool that can be used Text mining
by fraud investigators to compare documents and an-
alyze notes?
11. For an organization, a key performance indicator (KPI) Inventory turnover
measures the performance of a specific activity at a
predetermined level or amount. Which one of the fol-
lowing is an example of a KRI based on a ratio?
12. Before speaking with a group or individual, the speak- Set a clear communication
er should think about what he or she wants the oth- objective
er person(s) to do as a result of the conversation.
Which one of the following steps in the communica-
tion process does the speaker complete by doing this?
13. Mid-State Packing Company, a meat processing com- Loan defaults are likely to
pany, is the largest private sector employer in Metro be highly correlated
City. First National Bank of Metro City loans money
to Mid-State Packaging Company and to many of the
employees of Mid-State. The problem with First Na-
, ARM 400 Practice Exams - all chapters!!!!
Study online at https://quizlet.com/_a1xyog
tional Bank of Metro City loaning money to both the
business and many employees of the business is that
14. Which one of the following statements is true with Preventative analytics uses
regard to preventative analytics? smart products and data
analytics to identify root
loss causes and their im-
plications.
15. The emerging technologies applied to risk assess- connected ecosystem
ment and control link the physical domain to the vir-
tual domain. Together, these domains linked by the
emerging technologies create a
16. In addition to metal detector, many airports have in- Biochemical sensors
stalled a second type of scanning technology for bag-
gage 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 assess-
ment and control?
17. Which one of the following uses infrared light to de- Lidar
tect nearby objects?
18. SIR's use of drones, video, real-term video scanning, Preventative analytics
and computer analysis illustrates which one of the
following?
19. Which one of the following should be part of an orga- Instructions regarding
nization's standard operating procedures (SOPs) con- what types of information
cerning external stakeholder communications?
ARM 400 Practice Exams - all chapters!!!!
ANSWERS) LATEST UPDATE 2025/2026
Study online at https://quizlet.com/_a1xyog
1. According to the law of large numbers, as the number The relative accuracy of
of exposure units insured increases, predictions about future
losses increases
2. The fundamental purpose of a risk management Integrate risk manage-
framework is to ment throughout the or-
ganization
3. Which one of the following provides a measure of Exposure
the maximum potential damage associated with an
occurrence?
4. Aligning risks with the organization's risk appetite de- Tolerable uncertainty
fines
5. An organization must meet the standard of care that Legal obligations are sat-
it owes to others in order to ensure that isfied
6. Julian was having a conversation with Tania, one of Response
his employees. At this point, Julian said, "What I hear
you say is that you would like to take on more respon-
sibility. Is that correct?" Which one of the following
elements of active listening was Julian illustrating?
7. During the past year, International Toys has undertak- The new production ma-
en four capital projects. The company has renovated chine
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
, ARM 400 Practice Exams - all chapters!!!!
Study online at https://quizlet.com/_a1xyog
following company projects is the most speculative
risk?
8. Encouraging the expression of feelings as well as facts Cultivate two-way com-
and following up with employees on the problems munication
they report are two ways that managers and supervi-
sors can
9. Which one of the following risk management objec- Reduce the deterrent ef-
tives is critical for a manufacturer seeking new capital fects of hazard risks
from investors, stockholders, and creditors?
10. Which one of the following is a tool that can be used Text mining
by fraud investigators to compare documents and an-
alyze notes?
11. For an organization, a key performance indicator (KPI) Inventory turnover
measures the performance of a specific activity at a
predetermined level or amount. Which one of the fol-
lowing is an example of a KRI based on a ratio?
12. Before speaking with a group or individual, the speak- Set a clear communication
er should think about what he or she wants the oth- objective
er person(s) to do as a result of the conversation.
Which one of the following steps in the communica-
tion process does the speaker complete by doing this?
13. Mid-State Packing Company, a meat processing com- Loan defaults are likely to
pany, is the largest private sector employer in Metro be highly correlated
City. First National Bank of Metro City loans money
to Mid-State Packaging Company and to many of the
employees of Mid-State. The problem with First Na-
, ARM 400 Practice Exams - all chapters!!!!
Study online at https://quizlet.com/_a1xyog
tional Bank of Metro City loaning money to both the
business and many employees of the business is that
14. Which one of the following statements is true with Preventative analytics uses
regard to preventative analytics? smart products and data
analytics to identify root
loss causes and their im-
plications.
15. The emerging technologies applied to risk assess- connected ecosystem
ment and control link the physical domain to the vir-
tual domain. Together, these domains linked by the
emerging technologies create a
16. In addition to metal detector, many airports have in- Biochemical sensors
stalled a second type of scanning technology for bag-
gage 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 assess-
ment and control?
17. Which one of the following uses infrared light to de- Lidar
tect nearby objects?
18. SIR's use of drones, video, real-term video scanning, Preventative analytics
and computer analysis illustrates which one of the
following?
19. Which one of the following should be part of an orga- Instructions regarding
nization's standard operating procedures (SOPs) con- what types of information
cerning external stakeholder communications?
