ARM 400 STUDYS ACTUAL QUESTIONS AND
ANSWERS SURE A+
✔✔Risk can be classified as subjective or objective. Which one of the following
statements is correct with respect to these risk classifications? - ✔✔subjective risk can
exist even where objective risk does not
✔✔Asking a question such as "How do you think this will work out?" can help a speaker
do which of the following? - ✔✔request feedback and determine if the message has
been understood
✔✔Which one of the following is an internal source that can often provide information
regarding risks that aren't obvious? - ✔✔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)
✔✔The fundamental purpose of a risk management framework is to... - ✔✔integrate risk
management throughout the organization
✔✔In an effort to grow personal lines book, an insurer decides to offer discounts on
homeowners and personal auto insurance to the employees of its largest business lines
, account. Which one of the following risk measures is most likely to increase as a result
of this marketing decision? - ✔✔Correlation
(think law of large numbers)
✔✔Which one of the following statements is true regarding the basic measures that
apply to risk management? - ✔✔consequences measure the degree to which an
occurrence could positively or negatively affect an organization
✔✔The traditional definition of risk management reflects the traditional concept of risk
as ___________ - ✔✔negative
✔✔Sets of data that are too large to be gathered and analyzed by traditional methods -
✔✔big data
✔✔An innovative item that uses sensors; wireless sensor networks; and data collection,
transmission, and analysis to further enable the item to be faster more useful, or
otherwise improved. - ✔✔smart product
✔✔A network of objects that transmit data to and from each other without human
interaction. - ✔✔internet of things
✔✔Information, technology, and storage services contractually provided from remote
locations, through the internet or another network, without a direct server connection. -
✔✔cloud computing
✔✔A distributed digital ledger that facilitates secure transactions without the need for a
third party. - ✔✔blockchain
✔✔The use of technological devices in vehicles with wireless communication and GPS
tracking that transmit data to businesses or government agencies; some return
information for the driver. - ✔✔Telematics
✔✔Obtaining information through language recognition. - ✔✔text mining
✔✔Amount of risk an organization is willing to take on in order to achieve an anticipated
result or return. - ✔✔risk appetite
✔✔A technique to quantify financial risk by measuring the likelihood of losing more than
a specific dollar amount over a specific period of time. - ✔✔value at risk
✔✔The total cost incurred by an organization because of the possibility of accidental
loss. - ✔✔cost of risk
ANSWERS SURE A+
✔✔Risk can be classified as subjective or objective. Which one of the following
statements is correct with respect to these risk classifications? - ✔✔subjective risk can
exist even where objective risk does not
✔✔Asking a question such as "How do you think this will work out?" can help a speaker
do which of the following? - ✔✔request feedback and determine if the message has
been understood
✔✔Which one of the following is an internal source that can often provide information
regarding risks that aren't obvious? - ✔✔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)
✔✔The fundamental purpose of a risk management framework is to... - ✔✔integrate risk
management throughout the organization
✔✔In an effort to grow personal lines book, an insurer decides to offer discounts on
homeowners and personal auto insurance to the employees of its largest business lines
, account. Which one of the following risk measures is most likely to increase as a result
of this marketing decision? - ✔✔Correlation
(think law of large numbers)
✔✔Which one of the following statements is true regarding the basic measures that
apply to risk management? - ✔✔consequences measure the degree to which an
occurrence could positively or negatively affect an organization
✔✔The traditional definition of risk management reflects the traditional concept of risk
as ___________ - ✔✔negative
✔✔Sets of data that are too large to be gathered and analyzed by traditional methods -
✔✔big data
✔✔An innovative item that uses sensors; wireless sensor networks; and data collection,
transmission, and analysis to further enable the item to be faster more useful, or
otherwise improved. - ✔✔smart product
✔✔A network of objects that transmit data to and from each other without human
interaction. - ✔✔internet of things
✔✔Information, technology, and storage services contractually provided from remote
locations, through the internet or another network, without a direct server connection. -
✔✔cloud computing
✔✔A distributed digital ledger that facilitates secure transactions without the need for a
third party. - ✔✔blockchain
✔✔The use of technological devices in vehicles with wireless communication and GPS
tracking that transmit data to businesses or government agencies; some return
information for the driver. - ✔✔Telematics
✔✔Obtaining information through language recognition. - ✔✔text mining
✔✔Amount of risk an organization is willing to take on in order to achieve an anticipated
result or return. - ✔✔risk appetite
✔✔A technique to quantify financial risk by measuring the likelihood of losing more than
a specific dollar amount over a specific period of time. - ✔✔value at risk
✔✔The total cost incurred by an organization because of the possibility of accidental
loss. - ✔✔cost of risk
