ARM 400 Questions and Guide Answers
100% Verified Graded A+
1. Provides a measure of the maximum potential damage associated with an
occurrence
Answer: exposure
2. is an essential goal for all public entities
Answer: continuity of operations
3. An organization must meet the standard of care that it owes to others in
order to ensure that...
Answer: legal obligations are satisfied
4. What are the five steps of the risk management process?
Answer: - scan environment
- identify risk
- analyze risk
,- treat risk
- monitor and review
5. Which one of the following statements is true regarding the evolution of risk
and risk management?
Answer: the definition of risk has evolved to include positive as well as negative attributes
6. Risk management professionals must collaborate with data analysts during which
two steps of the risk management process?
Answer: analyze risk and monitor risk treatments
7. Jane always drives to visit her children who live 1,000 miles away. She enjoys
driving and feels safer in a vehicle than on an airplane because she feels she
has more control of her fate. The driving versus flying decision is an example of
Answer: subjective risk
8. enhances an organizations reputation
Answer: social responsibility
9. Samuel was recently hired as a risk management professional for Parker
Property Management. He has been asked by senior management to review
the organizations current insurance policies to make sure that the organi-
zation is adequately protected, and also see if there are any opportunities to
save on the premiums. Samuel must do which of the following through internal
, communication before he will be able to complete the task?
Answer: determine the organizations risk appetite
10. Billy owns a beach front cottage which has become his primary residence.
Billy's primary concern is that his home will be hit by a hurricane and badly
damaged or even destroyed. For Billy, this hurricane risk is a...
Answer: subjective risk
11. Risk can be classified as subjective or objective. Which one of the following
statements is correct with respect to these risk classifications?
Answer: subjective risk can exist even where objective risk does not
12. Asking a question such as "How do you think this will work out?" can help a
speaker do which of the following?
Answer: request feedback and determine if the message has been understood
13. Which one of the following is an internal source that can often provide
information regarding risks that aren't obvious?
Answer: internal auditing
(the internal audit function can often provide information regarding risk that aren't obvious, such as employees
creating a risk by not adhering to certain processes)
14. The fundamental purpose of a risk management framework is to...
100% Verified Graded A+
1. Provides a measure of the maximum potential damage associated with an
occurrence
Answer: exposure
2. is an essential goal for all public entities
Answer: continuity of operations
3. An organization must meet the standard of care that it owes to others in
order to ensure that...
Answer: legal obligations are satisfied
4. What are the five steps of the risk management process?
Answer: - scan environment
- identify risk
- analyze risk
,- treat risk
- monitor and review
5. Which one of the following statements is true regarding the evolution of risk
and risk management?
Answer: the definition of risk has evolved to include positive as well as negative attributes
6. Risk management professionals must collaborate with data analysts during which
two steps of the risk management process?
Answer: analyze risk and monitor risk treatments
7. Jane always drives to visit her children who live 1,000 miles away. She enjoys
driving and feels safer in a vehicle than on an airplane because she feels she
has more control of her fate. The driving versus flying decision is an example of
Answer: subjective risk
8. enhances an organizations reputation
Answer: social responsibility
9. Samuel was recently hired as a risk management professional for Parker
Property Management. He has been asked by senior management to review
the organizations current insurance policies to make sure that the organi-
zation is adequately protected, and also see if there are any opportunities to
save on the premiums. Samuel must do which of the following through internal
, communication before he will be able to complete the task?
Answer: determine the organizations risk appetite
10. Billy owns a beach front cottage which has become his primary residence.
Billy's primary concern is that his home will be hit by a hurricane and badly
damaged or even destroyed. For Billy, this hurricane risk is a...
Answer: subjective risk
11. Risk can be classified as subjective or objective. Which one of the following
statements is correct with respect to these risk classifications?
Answer: subjective risk can exist even where objective risk does not
12. Asking a question such as "How do you think this will work out?" can help a
speaker do which of the following?
Answer: request feedback and determine if the message has been understood
13. Which one of the following is an internal source that can often provide
information regarding risks that aren't obvious?
Answer: internal auditing
(the internal audit function can often provide information regarding risk that aren't obvious, such as employees
creating a risk by not adhering to certain processes)
14. The fundamental purpose of a risk management framework is to...
