ARM 400 Practice Exams - all chapters!!!! UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS
According to the law of large numbers, as the number of The relative accuracy of predictions about future losses increases
exposure units insured increases,
The fundamental purpose of a risk management Integrate risk management throughout the organization
framework is to
Which one of the following provides a measure of the Exposure
maximum potential damage associated with an
occurrence?
Aligning risks with the organization's risk appetite defines Tolerable uncertainty
An organization must meet the standard of care that it Legal obligations are satisfied
owes to others in order to ensure that
Julian was having a conversation with Tania, one of his Response
employees. At this point, Julian said, "What I hear you say
is that you would like to take on more responsibility. Is
that correct?" Which one of the following elements of
active listening was Julian illustrating?
, During the past year, International Toys has undertaken The new production machine
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?
Encouraging the expression of feelings as well as facts Cultivate two-way communication
and following up with employees on the problems they
report are two ways that managers and supervisors can
Which one of the following risk management objectives is Reduce the deterrent effects of hazard risks
critical for a manufacturer seeking new capital from
investors, stockholders, and creditors?
Which one of the following is a tool that can be used by Text mining
fraud investigators to compare documents and analyze
notes?
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
following is an example of a KRI based on a ratio?
Before speaking with a group or individual, the speaker Set a clear communication objective
should think about what he or she wants the other
person(s) to do as a result of the conversation. Which one
of the following steps in the communication process
does the speaker complete by doing this?
Mid-State Packing Company, a meat processing Loan defaults are likely to be highly correlated
company, is the largest private sector employer in Metro
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 National
Bank of Metro City loaning money to both the business
and many employees of the business is that
Which one of the following statements is true with regard Preventative analytics uses smart products and data analytics to identify root loss
to preventative analytics? causes and their implications.
The emerging technologies applied to risk assessment connected ecosystem
and control link the physical domain to the virtual
domain. Together, these domains linked by the emerging
technologies create a
AND CORRECT ANSWERS
According to the law of large numbers, as the number of The relative accuracy of predictions about future losses increases
exposure units insured increases,
The fundamental purpose of a risk management Integrate risk management throughout the organization
framework is to
Which one of the following provides a measure of the Exposure
maximum potential damage associated with an
occurrence?
Aligning risks with the organization's risk appetite defines Tolerable uncertainty
An organization must meet the standard of care that it Legal obligations are satisfied
owes to others in order to ensure that
Julian was having a conversation with Tania, one of his Response
employees. At this point, Julian said, "What I hear you say
is that you would like to take on more responsibility. Is
that correct?" Which one of the following elements of
active listening was Julian illustrating?
, During the past year, International Toys has undertaken The new production machine
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?
Encouraging the expression of feelings as well as facts Cultivate two-way communication
and following up with employees on the problems they
report are two ways that managers and supervisors can
Which one of the following risk management objectives is Reduce the deterrent effects of hazard risks
critical for a manufacturer seeking new capital from
investors, stockholders, and creditors?
Which one of the following is a tool that can be used by Text mining
fraud investigators to compare documents and analyze
notes?
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
following is an example of a KRI based on a ratio?
Before speaking with a group or individual, the speaker Set a clear communication objective
should think about what he or she wants the other
person(s) to do as a result of the conversation. Which one
of the following steps in the communication process
does the speaker complete by doing this?
Mid-State Packing Company, a meat processing Loan defaults are likely to be highly correlated
company, is the largest private sector employer in Metro
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 National
Bank of Metro City loaning money to both the business
and many employees of the business is that
Which one of the following statements is true with regard Preventative analytics uses smart products and data analytics to identify root loss
to preventative analytics? causes and their implications.
The emerging technologies applied to risk assessment connected ecosystem
and control link the physical domain to the virtual
domain. Together, these domains linked by the emerging
technologies create a
