Segment C ARM 401 UPDATED ACTUAL Questions and CORRECT Answers
1. Insurance Company monitors key indicators of under- Control indicators.
writing effectiveness. Some indicators they monitor
include: percentage of business quoted that was writ-
ten, application processing time, premium volume
handled by underwriters, skill level of underwriters,
and benchmarking between different underwriting
offices. The indicators of underwriting performance
Insurance Company uses are called
2. Which one of the following statements about Blockchain stores a record
blockchain is true? of transactions across a
network of servers.
3. Which one of the following is an example of a report A customer satisfaction
that would most likely contain both quantitative and survey
qualitative data?
4. Chuck is Vice President of Claims for Insurance Com- Regression analysis.
pany. The company has 37 adjusters in the field, and
needs to hire four new adjusters. Chuck is curious
about the relationship between prior experience of
the adjuster and policyowner complaints. He collected
data on the number of complaints for each adjuster
on staff over time. Then he used a statistical technique
to analyze the relationship between adjuster experi-
ence and complaints, and the trend of the relationship
over time. The statistical analysis confirmed that that
there were significantly fewer complaints with more
experienced adjusters, and that the relationship grew
stronger with more years of experience. The tech-
nique Chuck used to relate indicators to outcomes is
called
,5. Which one of the following statements is true regard- Operational risk is inte-
ing operational risk? grated in every activity of
an organization.
6. A risk manager's goal when using a social network is To reach as many end
users as possible with the
minimum amount of ef-
fort.
7. avoidance reduces the possibility of
an action occurring to zero
8. loss prevention used when avoidance is
impossible or undesirable
9. loss reduction plan to restore injured or
physically limited if risk
can't be avoided
10. intellectual property the product of human in-
telligence that has eco-
nomic value
11. errors and omissions negligent acts (errors)
committed by a per-
son conducting insurance
business that give rise to
legal liability for damages;
a failure to act (omission)
that creates legal liability.
12. Specific risk control measures to prevent, deter, or - physical controls
mitigate cyber risk include... - procedural controls
, - personnel controls
- managerial controls
- investigation and prose-
cution of cyber crimes
- post cyber incident rapid
recovery program
13. physical controls include... locked doors, central se-
curity alarms, etc.
14. procedural controls include... performing task in secure
ways
15. personnel controls help prevent employees from do- falling for phishing
ing things such as schemes
16. Risk financing measures for cyber risk include... - insurance
- noninsurance risk trans-
fer
- retention
17. The foundation of third-party cyber liability loss expo- - customer and trading
sures is based on these concepts: partner liability
- liability for customer data
resulting from invasion of
privacy and breach of con-
tract
- network security liability
including liability for dam-
age to a third party net-
work resulting from a data
breach
1. Insurance Company monitors key indicators of under- Control indicators.
writing effectiveness. Some indicators they monitor
include: percentage of business quoted that was writ-
ten, application processing time, premium volume
handled by underwriters, skill level of underwriters,
and benchmarking between different underwriting
offices. The indicators of underwriting performance
Insurance Company uses are called
2. Which one of the following statements about Blockchain stores a record
blockchain is true? of transactions across a
network of servers.
3. Which one of the following is an example of a report A customer satisfaction
that would most likely contain both quantitative and survey
qualitative data?
4. Chuck is Vice President of Claims for Insurance Com- Regression analysis.
pany. The company has 37 adjusters in the field, and
needs to hire four new adjusters. Chuck is curious
about the relationship between prior experience of
the adjuster and policyowner complaints. He collected
data on the number of complaints for each adjuster
on staff over time. Then he used a statistical technique
to analyze the relationship between adjuster experi-
ence and complaints, and the trend of the relationship
over time. The statistical analysis confirmed that that
there were significantly fewer complaints with more
experienced adjusters, and that the relationship grew
stronger with more years of experience. The tech-
nique Chuck used to relate indicators to outcomes is
called
,5. Which one of the following statements is true regard- Operational risk is inte-
ing operational risk? grated in every activity of
an organization.
6. A risk manager's goal when using a social network is To reach as many end
users as possible with the
minimum amount of ef-
fort.
7. avoidance reduces the possibility of
an action occurring to zero
8. loss prevention used when avoidance is
impossible or undesirable
9. loss reduction plan to restore injured or
physically limited if risk
can't be avoided
10. intellectual property the product of human in-
telligence that has eco-
nomic value
11. errors and omissions negligent acts (errors)
committed by a per-
son conducting insurance
business that give rise to
legal liability for damages;
a failure to act (omission)
that creates legal liability.
12. Specific risk control measures to prevent, deter, or - physical controls
mitigate cyber risk include... - procedural controls
, - personnel controls
- managerial controls
- investigation and prose-
cution of cyber crimes
- post cyber incident rapid
recovery program
13. physical controls include... locked doors, central se-
curity alarms, etc.
14. procedural controls include... performing task in secure
ways
15. personnel controls help prevent employees from do- falling for phishing
ing things such as schemes
16. Risk financing measures for cyber risk include... - insurance
- noninsurance risk trans-
fer
- retention
17. The foundation of third-party cyber liability loss expo- - customer and trading
sures is based on these concepts: partner liability
- liability for customer data
resulting from invasion of
privacy and breach of con-
tract
- network security liability
including liability for dam-
age to a third party net-
work resulting from a data
breach
