A.R.M. 400 Practice Exam | Questions with 100%
Correct Answers | Verified | Latest Update
2026/2027
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Terms in this set (241)
When communicating a decision up D
the organization's chain of command,
consulting with outside experts can
help a risk management professional
do which one of the following?
A. Seek feedback from stakeholders
B. Stay focused on the organization's
objectives
C. Define the organization's risk
appetite
D. Enhance stakeholders' confidence
in the process
Which of the following risk B
management program goals is an
essential goal for all public entities?
A. Earning stability
B. Continuity of operations
C. Growth
D. Survival
,The traditional definition of risk B
management reflects the traditional
concept of risk as
A. Both positive and negative.
B. Negative.
C. Uncontrollable.
D. Strategic.
During the past year, International D
Toys has undertaken four capital
projects. The company has
renovated 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 following company
projects is the most speculative risk?
A. The two new trucks
B. The warehouse refurbishment
C. The software upgrade
D. The new production machine
,Which one of the following A
statements is true regarding the
basic measures that apply to risk
management?
A. Consequences measure the
degree to which an occurrence
could positively or negatively affect
an organization.
B. Hedging is a risk management
strategy that can reduce the risk of
correlation.
C. Risk increases as volatility
decreases.
D. Longer time horizons are
generally less risky that shorter ones.
Which one of the following provides A
a measure of the maximum potential
damage associated with an
occurrence?
A. Exposure
B. Duration
C. Underwriting risk
D. Maximum probable loss
, Samuel was recently hired as a risk A
management professional for Parker
Property Management. He has been
asked by senior management to
review the organization's current
insurance policies to make sure that
the organization is adequately
protected, and also see if there are
any opportunities to save on the
premiums. Samuel must do which
one of the following through internal
communication before he will be
able to complete this task?
A. Determine the organization's risk
appetite
B. Identify all of the risks that the
organization faces
C. Earn the confidence of the
organization's board of directors
D. Become familiar with industry
regulations
Catastrophes such as recent A
earthquakes and the 2011 tsunami in
Japan pointed out a need for many
organizations to evaluate and
manage their
A. Supply-chain risk.
B. Derivative risk.
C. Compliance risk.
D. Political risk.
Correct Answers | Verified | Latest Update
2026/2027
Save
Terms in this set (241)
When communicating a decision up D
the organization's chain of command,
consulting with outside experts can
help a risk management professional
do which one of the following?
A. Seek feedback from stakeholders
B. Stay focused on the organization's
objectives
C. Define the organization's risk
appetite
D. Enhance stakeholders' confidence
in the process
Which of the following risk B
management program goals is an
essential goal for all public entities?
A. Earning stability
B. Continuity of operations
C. Growth
D. Survival
,The traditional definition of risk B
management reflects the traditional
concept of risk as
A. Both positive and negative.
B. Negative.
C. Uncontrollable.
D. Strategic.
During the past year, International D
Toys has undertaken four capital
projects. The company has
renovated 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 following company
projects is the most speculative risk?
A. The two new trucks
B. The warehouse refurbishment
C. The software upgrade
D. The new production machine
,Which one of the following A
statements is true regarding the
basic measures that apply to risk
management?
A. Consequences measure the
degree to which an occurrence
could positively or negatively affect
an organization.
B. Hedging is a risk management
strategy that can reduce the risk of
correlation.
C. Risk increases as volatility
decreases.
D. Longer time horizons are
generally less risky that shorter ones.
Which one of the following provides A
a measure of the maximum potential
damage associated with an
occurrence?
A. Exposure
B. Duration
C. Underwriting risk
D. Maximum probable loss
, Samuel was recently hired as a risk A
management professional for Parker
Property Management. He has been
asked by senior management to
review the organization's current
insurance policies to make sure that
the organization is adequately
protected, and also see if there are
any opportunities to save on the
premiums. Samuel must do which
one of the following through internal
communication before he will be
able to complete this task?
A. Determine the organization's risk
appetite
B. Identify all of the risks that the
organization faces
C. Earn the confidence of the
organization's board of directors
D. Become familiar with industry
regulations
Catastrophes such as recent A
earthquakes and the 2011 tsunami in
Japan pointed out a need for many
organizations to evaluate and
manage their
A. Supply-chain risk.
B. Derivative risk.
C. Compliance risk.
D. Political risk.
