ARM 402 - Ch 9 Exam Questions and
Answers with Verified Solutions | Latest
Updated 2026
Widget Manufacturing board of A. Will typically result in risk-based
directors recently adopted a decisions that are too rigid and
zero-risk tolerance for work counter-productive.
place accidents. Initially the
chief risk officer thought this
was a great idea, however, he
has found it very hard to
implement. One reason that a
zero-risk tolerance policy is
hard to implement is because
zero-risk tolerance Select one:
A. Will typically result in
risk-based decisions that are
too rigid and
counter-productive. B. Results
in higher capital expenditures
and significantly lower returns
on investment. C. Requires
supervisors to constantly
monitor and often
micro-manage their direct
reports. D. Results in higher
levels of customer defections
due to the high costs of
implementation.
, Which one of the following D. Porter's Five Forces analysis
analysis methods concentrates
on an organization's
competitive environment?
Select one: A. SWOT analysis
B. PESTLE analysis C. Scenario
analysis D. Porter's Five Forces
analysis
The four SWOT headings are B. Opportunities.
strengths, weaknesses,
threats and Select one: A.
Priorities. B. Opportunities. C.
Ideas. D. Markets.
Organizations face strategic C. Are systemic risks that are
risks. Strategic risks Select outside the control of any single
one: A. Are pure risks, which organization.
always result in a loss. B. Are
internal risks for an
organization. C. Are systemic
risks that are outside the
control of any single
organization. D. Impact all
organizations in the same
way.
Strategic risk can be created C. Resource allocation
and affected by external
factors or internal factors.
Which one of the following is
considered an internal factor?
Select one: A. Changes in
regulations B. Changes in
Answers with Verified Solutions | Latest
Updated 2026
Widget Manufacturing board of A. Will typically result in risk-based
directors recently adopted a decisions that are too rigid and
zero-risk tolerance for work counter-productive.
place accidents. Initially the
chief risk officer thought this
was a great idea, however, he
has found it very hard to
implement. One reason that a
zero-risk tolerance policy is
hard to implement is because
zero-risk tolerance Select one:
A. Will typically result in
risk-based decisions that are
too rigid and
counter-productive. B. Results
in higher capital expenditures
and significantly lower returns
on investment. C. Requires
supervisors to constantly
monitor and often
micro-manage their direct
reports. D. Results in higher
levels of customer defections
due to the high costs of
implementation.
, Which one of the following D. Porter's Five Forces analysis
analysis methods concentrates
on an organization's
competitive environment?
Select one: A. SWOT analysis
B. PESTLE analysis C. Scenario
analysis D. Porter's Five Forces
analysis
The four SWOT headings are B. Opportunities.
strengths, weaknesses,
threats and Select one: A.
Priorities. B. Opportunities. C.
Ideas. D. Markets.
Organizations face strategic C. Are systemic risks that are
risks. Strategic risks Select outside the control of any single
one: A. Are pure risks, which organization.
always result in a loss. B. Are
internal risks for an
organization. C. Are systemic
risks that are outside the
control of any single
organization. D. Impact all
organizations in the same
way.
Strategic risk can be created C. Resource allocation
and affected by external
factors or internal factors.
Which one of the following is
considered an internal factor?
Select one: A. Changes in
regulations B. Changes in
