ARM 400 REVIEW TIPS QUESTIONS AND ANSWERS
SET A+
✔✔Risk Management Framework - ✔✔A foundation for applying the risk management
process throughout the organization.
✔✔Risk Criteria - ✔✔Information used as a basis for measuring the significance of a
risk
✔✔Major options to treat risk (5) - ✔✔1. Avoid the risk
2. Modify the likelihood and/ or impact of the risk
3. Transfer the risk
4. Retain the risk
5. Exploit the risk
✔✔Factors to consider when defining a companies risk criteria (6) - ✔✔1. Causes of
risk
2. Effects of risk
3. Metrics used to measure effects of risk
4. Timeframe of potential effects
5. Methods to determine level of risk
6. Approach to combinations of risk
✔✔Process of risk identification of several keys risks within an organization -
✔✔Communication between departmental stakeholder (understand their perspective of
most pressing risks they face), external experts (shine light on emerging risks not
anticipated or known about) & Collaborating with senior management (ensure risk
associated with the organization's strategy are identified)
✔✔Risk analysis - ✔✔Applying the defined risk criteria to determine the source, cause,
likelihood, and potential consequences of each of the identified risks. Depending on the
circumstances, this analysis can be quantitative, qualitative, or both. Quantitative
analysis, in particular, may entail interacting with experts.
,✔✔4 results of effective workplace communication - ✔✔1. increases productivity
2. reduces confusion
3. Mitigates conflict
4. improves morale
✔✔5 steps of the communication process - ✔✔1. Clear communication objectives
2. Analyze audience
3. Decide when and where to talk
4. Pay attention to your body language
5. Ask for feedback to ensure it was understood
✔✔3 elements of active listening - ✔✔Attention, suspension of judgement and response
✔✔nondirective techniques of communication - ✔✔don't direct the flow of the
conservation
✔✔Types of nondirective communication - ✔✔open ended questions, asking for
clarification, reflecting on the input of others and empathizing
✔✔Internal Control - ✔✔A system or process that an organization uses to achieve its
operational goals, internal and external financial reporting goals or legal and regulatory
compliance goals
✔✔Enterprise risk management (ERM) - ✔✔holistic approach to risk management with
includes scanning the environment & communicating/ collaborating with internal and
external stakeholders
✔✔Scan the Environment - ✔✔seeking input from experts within and outside the risk
professional's organization
✔✔Scan the Environment (Internally) - ✔✔Help define the organization's risk appetite,
which in turn determines how to handle certain risks.
✔✔Scan the Environment (Externally) - ✔✔helps reveal potential risks an organization
might not otherwise be aware of, such as legislation regarding a particular industry or
regulations that may affect operations.
✔✔Internal Controls - ✔✔System of process used to achieve operational, financial,
legal of regulatory goals
✔✔Benefits of collaboration with data analysts - ✔✔analysts can identify trends and
predict possible outcomes that can help the organization avoid the related risks.
, ✔✔Insurance primary deals with which type of risk - ✔✔Pure Risk
✔✔Which risk management program goals is an essential goal for all public entities -
✔✔continuity of operations
✔✔Risk management professionals must collaborate with data analysts during which
two steps of the risk management process - ✔✔Analyze risks and monitor risk
treatments
✔✔Insurtech - ✔✔The use of emerging technology in the insurance industry.
✔✔Sensor - ✔✔A device that detects and measures stimuli in its environment.
✔✔Preventive analytics - ✔✔Statistical and analytical techniques used to influence or
prevent future events or behaviors.
✔✔Risktech - ✔✔Using tech to making risk financing more efficient to include how to
prevent and mitigate risk
✔✔Risktech Ecosystem - ✔✔merging technologies, smart products and smart
operations, and big data analytics.
✔✔Transducer - ✔✔A device that converts one form of energy into another.
✔✔Actuator - ✔✔A mechanical device that turns energy into motion or otherwise
effectuates a change in position or rotation using a signal and an energy source.
✔✔Accelerometer - ✔✔A device that measures acceleration, motion, and tilt.
✔✔4 types of sensors - ✔✔Mechanical (pressure), Biochemical (wearable fitness
monitor) Thermal (smoke detectors) Radiant (radar)
✔✔Ergonomics - ✔✔The science of designing work space and equipment based on the
needs of the people who use the work space and equipment.
✔✔Risk center - ✔✔A discrete unit within an organization, having a leader and specific
objectives, at which level a particular risk (or group of risks) is most appropriately and
effectively managed.
✔✔Risk owner - ✔✔An individual accountable for the identification, assessment,
treatment, and monitoring of risks in a specific environment.
SET A+
✔✔Risk Management Framework - ✔✔A foundation for applying the risk management
process throughout the organization.
✔✔Risk Criteria - ✔✔Information used as a basis for measuring the significance of a
risk
✔✔Major options to treat risk (5) - ✔✔1. Avoid the risk
2. Modify the likelihood and/ or impact of the risk
3. Transfer the risk
4. Retain the risk
5. Exploit the risk
✔✔Factors to consider when defining a companies risk criteria (6) - ✔✔1. Causes of
risk
2. Effects of risk
3. Metrics used to measure effects of risk
4. Timeframe of potential effects
5. Methods to determine level of risk
6. Approach to combinations of risk
✔✔Process of risk identification of several keys risks within an organization -
✔✔Communication between departmental stakeholder (understand their perspective of
most pressing risks they face), external experts (shine light on emerging risks not
anticipated or known about) & Collaborating with senior management (ensure risk
associated with the organization's strategy are identified)
✔✔Risk analysis - ✔✔Applying the defined risk criteria to determine the source, cause,
likelihood, and potential consequences of each of the identified risks. Depending on the
circumstances, this analysis can be quantitative, qualitative, or both. Quantitative
analysis, in particular, may entail interacting with experts.
,✔✔4 results of effective workplace communication - ✔✔1. increases productivity
2. reduces confusion
3. Mitigates conflict
4. improves morale
✔✔5 steps of the communication process - ✔✔1. Clear communication objectives
2. Analyze audience
3. Decide when and where to talk
4. Pay attention to your body language
5. Ask for feedback to ensure it was understood
✔✔3 elements of active listening - ✔✔Attention, suspension of judgement and response
✔✔nondirective techniques of communication - ✔✔don't direct the flow of the
conservation
✔✔Types of nondirective communication - ✔✔open ended questions, asking for
clarification, reflecting on the input of others and empathizing
✔✔Internal Control - ✔✔A system or process that an organization uses to achieve its
operational goals, internal and external financial reporting goals or legal and regulatory
compliance goals
✔✔Enterprise risk management (ERM) - ✔✔holistic approach to risk management with
includes scanning the environment & communicating/ collaborating with internal and
external stakeholders
✔✔Scan the Environment - ✔✔seeking input from experts within and outside the risk
professional's organization
✔✔Scan the Environment (Internally) - ✔✔Help define the organization's risk appetite,
which in turn determines how to handle certain risks.
✔✔Scan the Environment (Externally) - ✔✔helps reveal potential risks an organization
might not otherwise be aware of, such as legislation regarding a particular industry or
regulations that may affect operations.
✔✔Internal Controls - ✔✔System of process used to achieve operational, financial,
legal of regulatory goals
✔✔Benefits of collaboration with data analysts - ✔✔analysts can identify trends and
predict possible outcomes that can help the organization avoid the related risks.
, ✔✔Insurance primary deals with which type of risk - ✔✔Pure Risk
✔✔Which risk management program goals is an essential goal for all public entities -
✔✔continuity of operations
✔✔Risk management professionals must collaborate with data analysts during which
two steps of the risk management process - ✔✔Analyze risks and monitor risk
treatments
✔✔Insurtech - ✔✔The use of emerging technology in the insurance industry.
✔✔Sensor - ✔✔A device that detects and measures stimuli in its environment.
✔✔Preventive analytics - ✔✔Statistical and analytical techniques used to influence or
prevent future events or behaviors.
✔✔Risktech - ✔✔Using tech to making risk financing more efficient to include how to
prevent and mitigate risk
✔✔Risktech Ecosystem - ✔✔merging technologies, smart products and smart
operations, and big data analytics.
✔✔Transducer - ✔✔A device that converts one form of energy into another.
✔✔Actuator - ✔✔A mechanical device that turns energy into motion or otherwise
effectuates a change in position or rotation using a signal and an energy source.
✔✔Accelerometer - ✔✔A device that measures acceleration, motion, and tilt.
✔✔4 types of sensors - ✔✔Mechanical (pressure), Biochemical (wearable fitness
monitor) Thermal (smoke detectors) Radiant (radar)
✔✔Ergonomics - ✔✔The science of designing work space and equipment based on the
needs of the people who use the work space and equipment.
✔✔Risk center - ✔✔A discrete unit within an organization, having a leader and specific
objectives, at which level a particular risk (or group of risks) is most appropriately and
effectively managed.
✔✔Risk owner - ✔✔An individual accountable for the identification, assessment,
treatment, and monitoring of risks in a specific environment.
