A.R.M. 400 - ASSOCIATE IN RISK
MANAGEMENT EXAM | NEWEST
EXAM COMPREHENSIVE QUESTIONS
AND VERIFIED ANSWERS
Organizations are increasingly creating chief risk officer (CRO) positions. Which one of the
following statements is correct with respect to CROs?
A. The CRO's rank and importance to the board of directors are equal to those of the
organization's other executive officers.
B. Typically, a CRO analyzes, measures, and monitors risk; compiles reports; and facilitates
D
risk workshops without the need for staff.
O
C. CROs' roles are relatively standardized from industry to industry; they focus primarily -
N
✔✔✔ Correct Answer > A
O
T
One corporate governance issue is accountability of directors. One method to increase
accountability of directors is to A. Include more inside directors.
C
O
B. Decrease the independence of audit and compensation committees.
PY
C. Conduct regular meetings of outside directors without management being present.
D. Ensure that the chief executive officer serves as board chairman. -
✔✔✔ Correct Answer > C
Which one of the following statements regarding the structure and role of a board of directors is
true?
A. The board of directors must be comprised of ten directors, with an equal number of inside
and outside directors.
B. Members of the board elect a director to be chairman of the board.
C. The board is responsible for the day-to-day decisions at a corporation.
,D. Members of the board are appointed by the president of the company. - ✔✔✔ Correct Answer
>B
Which one of the following is the term used for a person—usually a manager—who advocates
for and supports a specific aspect of the risk management process in an organization?
A. Risk manager
B. Risk champion
C. Chief risk officer (CRO)
D. Internal auditor - ✔✔✔ Correct Answer > B
D
All of the following are true regarding the composition of boards of directors, EXCEPT:
O
A. Corporate boards are uniform in size with 13 directors.
N
B. Boards include both inside directors and outside directors.
O
C. Directors elect the chairman of the board.
T
D. Outside directors serve on the compensation committee. - ✔✔✔
C
Correct Answer > A
O
PY
Which one of the following statements regarding corporate governance and risk oversight is
true?
A. Nonfinancial organizations are subject to greater regulatory pressure for transparency and
astute risk management than financial organizations.
B. Some board of directors delegate risk oversight tasks to board committees, such as the
audit committee, risk committee, and compensation committee.
C. Board oversight should be limited to past history and current conditions, and should
avoid considerati - ✔✔✔ Correct Answer > B
A privacy impact assessment (PIA) is
A. A tool used to identify and assess privacy risks.
,B. An example of metadata that defines key data attributes.
C. A collaborative tool that facilitates workflows.
D. Proprietary software used to detect malware. - ✔✔✔ Correct
Answer > A
Which one of the following functions of a data management program would allow accounting
transactions to automatically update an organization's financial statements?
A. Data governance
B. Data access
C. Data preparation
D
D. Data integration - ✔✔✔ Correct Answer > D
O
N
Which one of the following statements is correct regarding the personal data and privacy
O
positions of the European Union (EU) and the U.S.?
T
A. Class-action lawsuits over privacy are commonplace in the EU, but rare in the U.S.
C
B. The U.S. has a stronger cultural expectation of privacy than the EU.
O
C.
PY
U.S. companies are required to comply with the EU's General Data Protection Regulation
(GDPR) only if they have employees in the EU.
D. The EU has one all-encompassing data protection framework and t -
✔✔✔ Correct Answer > D
Which one of the following defines individual risk?
A. Individual risk varies according to the type of business.
B. Individual risk may be categorized as operational.
C. Individual risk is defined by the data governance committee.
D. Individual risk is reputational in nature. - ✔✔✔ Correct Answer > A
, Metadata contains
A. Accounting ledger entries as well as big data.
B. Both material limitations and sampling methodology.
C. Information about data as well as rules about that data.
D. A combination of structured and unstructured data. - ✔✔✔ Correct
Answer > C
Which one of the following defines the duties of a data steward? A. A data steward
measures data compliance.
D
B. A data steward is an experienced business analyst.
O
C. A data steward provides technological support.
N
D. A data steward is a project manager. - ✔✔✔ Correct Answer > B
O
T
Which one of the following provides the frame of reference needed so data can be used
C
appropriately for analysis and decision-making?
O
A. Metadata
PY
B. Data lineage
C. Data custodian
D. Data virtualization - ✔✔✔ Correct Answer > A
Which one of the following statements is correct with respect to the role of a board of directors
in risk oversight?
A. Increasing pressure on boards of directors to provide greater enterprise-wide risk
oversight comes from sources such as investors, rating agencies, and regulators.
B. A 2012 survey of executives revealed that practically all boards have formally assigned
risk oversight responsibility to a board committee.
MANAGEMENT EXAM | NEWEST
EXAM COMPREHENSIVE QUESTIONS
AND VERIFIED ANSWERS
Organizations are increasingly creating chief risk officer (CRO) positions. Which one of the
following statements is correct with respect to CROs?
A. The CRO's rank and importance to the board of directors are equal to those of the
organization's other executive officers.
B. Typically, a CRO analyzes, measures, and monitors risk; compiles reports; and facilitates
D
risk workshops without the need for staff.
O
C. CROs' roles are relatively standardized from industry to industry; they focus primarily -
N
✔✔✔ Correct Answer > A
O
T
One corporate governance issue is accountability of directors. One method to increase
accountability of directors is to A. Include more inside directors.
C
O
B. Decrease the independence of audit and compensation committees.
PY
C. Conduct regular meetings of outside directors without management being present.
D. Ensure that the chief executive officer serves as board chairman. -
✔✔✔ Correct Answer > C
Which one of the following statements regarding the structure and role of a board of directors is
true?
A. The board of directors must be comprised of ten directors, with an equal number of inside
and outside directors.
B. Members of the board elect a director to be chairman of the board.
C. The board is responsible for the day-to-day decisions at a corporation.
,D. Members of the board are appointed by the president of the company. - ✔✔✔ Correct Answer
>B
Which one of the following is the term used for a person—usually a manager—who advocates
for and supports a specific aspect of the risk management process in an organization?
A. Risk manager
B. Risk champion
C. Chief risk officer (CRO)
D. Internal auditor - ✔✔✔ Correct Answer > B
D
All of the following are true regarding the composition of boards of directors, EXCEPT:
O
A. Corporate boards are uniform in size with 13 directors.
N
B. Boards include both inside directors and outside directors.
O
C. Directors elect the chairman of the board.
T
D. Outside directors serve on the compensation committee. - ✔✔✔
C
Correct Answer > A
O
PY
Which one of the following statements regarding corporate governance and risk oversight is
true?
A. Nonfinancial organizations are subject to greater regulatory pressure for transparency and
astute risk management than financial organizations.
B. Some board of directors delegate risk oversight tasks to board committees, such as the
audit committee, risk committee, and compensation committee.
C. Board oversight should be limited to past history and current conditions, and should
avoid considerati - ✔✔✔ Correct Answer > B
A privacy impact assessment (PIA) is
A. A tool used to identify and assess privacy risks.
,B. An example of metadata that defines key data attributes.
C. A collaborative tool that facilitates workflows.
D. Proprietary software used to detect malware. - ✔✔✔ Correct
Answer > A
Which one of the following functions of a data management program would allow accounting
transactions to automatically update an organization's financial statements?
A. Data governance
B. Data access
C. Data preparation
D
D. Data integration - ✔✔✔ Correct Answer > D
O
N
Which one of the following statements is correct regarding the personal data and privacy
O
positions of the European Union (EU) and the U.S.?
T
A. Class-action lawsuits over privacy are commonplace in the EU, but rare in the U.S.
C
B. The U.S. has a stronger cultural expectation of privacy than the EU.
O
C.
PY
U.S. companies are required to comply with the EU's General Data Protection Regulation
(GDPR) only if they have employees in the EU.
D. The EU has one all-encompassing data protection framework and t -
✔✔✔ Correct Answer > D
Which one of the following defines individual risk?
A. Individual risk varies according to the type of business.
B. Individual risk may be categorized as operational.
C. Individual risk is defined by the data governance committee.
D. Individual risk is reputational in nature. - ✔✔✔ Correct Answer > A
, Metadata contains
A. Accounting ledger entries as well as big data.
B. Both material limitations and sampling methodology.
C. Information about data as well as rules about that data.
D. A combination of structured and unstructured data. - ✔✔✔ Correct
Answer > C
Which one of the following defines the duties of a data steward? A. A data steward
measures data compliance.
D
B. A data steward is an experienced business analyst.
O
C. A data steward provides technological support.
N
D. A data steward is a project manager. - ✔✔✔ Correct Answer > B
O
T
Which one of the following provides the frame of reference needed so data can be used
C
appropriately for analysis and decision-making?
O
A. Metadata
PY
B. Data lineage
C. Data custodian
D. Data virtualization - ✔✔✔ Correct Answer > A
Which one of the following statements is correct with respect to the role of a board of directors
in risk oversight?
A. Increasing pressure on boards of directors to provide greater enterprise-wide risk
oversight comes from sources such as investors, rating agencies, and regulators.
B. A 2012 survey of executives revealed that practically all boards have formally assigned
risk oversight responsibility to a board committee.
