ARM 400 QUESTIONS AND ANSWERS SET A+
✔✔Which one of the following plans calls for action before, during, and after
catastrophes with a focus on saving lives, reducing property losses, and conserving
resources during recovery? - ✔✔Crisis management plan
✔✔Mathias Manufacturing suffered a major business disruption due to a fire at one of
its locations. Management has set up a center of operations with the business
intelligence information available to test various production scenarios. Mathias is in
which one of the following stages of strategic redeployment planning? - ✔✔Alternative
marketing stage
✔✔Which one of the following stages of a redeployment plan is designed to protect
people, physical assets, and reputation? - ✔✔Emergency stage
✔✔The focus of risk quadrants is different from the focus of risk classifications in
general. While the classifications of risk focus on some aspect of the risk itself, the four
quadrants of risk focus on - ✔✔The source of risk and who has traditionally managed it
✔✔Regarding diversifiable and nondiversifiable risk, which one of the following
statements is accurate? - ✔✔Systemic risks are generally nondiversifiable.
✔✔Business Process Management (BPM) - ✔✔A systematic, iterative plan to analyze
and improve business processes through life-cycle phases to achieve long-term goals
and client satisfaction.
✔✔T or F? Business process management is successfully completed when a process
(or process improvement) is deemed to be a total success - ✔✔False. Regardless of
whether a process is a total success, the five-step BPM life cycle is not complete. In
fact, one of the major benefits of the BPM life cycle is that it promotes continual
improvement
, ✔✔Five steps of BPM Life Cycle - ✔✔1) Design/redesign processes
2) Model scenarios
3) Execute process changes
4) Monitor results
5) Optimize processes
✔✔Which one of the following statements regarding the structure and role of a board of
directors is true? - ✔✔Members of the board elect a director to be chairman of the
board
✔✔All of the following are mechanisms to align manager and shareholder interests,
EXCEPT - ✔✔Expansion and growth
✔✔Which one of the following categories of agency costs is assumed by managers? -
✔✔Bonding costs
✔✔Which one of the following is an example of a data governance tool? - ✔✔external
policy
✔✔Internal data entry processes that capture accounting transactions, customer data or
other operational transactions are called - ✔✔Data capture
✔✔Which one of the following is a data governance committee (DGC) responsibility? -
✔✔A data governance committee ensures there are few conflicts or redundancies in
data standards and practices.
✔✔In accordance with the Three Lines of Defense Model, how does risk management
act as the second line of defense? - ✔✔Risk management supports and monitors
operational management's implementation of risk management practices
✔✔Management controls - ✔✔Coordinate resource allocation, motivate performance,
and measure outcomes — capital budgeting, expense variance reviews, balanced
scorecards
✔✔Risk Tolerance - ✔✔Amount of risk an organization is able to bear given its financial
capacity
✔✔Rules based or principles based: Restaurant employees must wash their hands
every they use the restroom - ✔✔Rules based
✔✔Rules based or principles based: Restaurant managers must ensure that employees
maintain high standards of hygiene - ✔✔Principles based
✔✔Which one of the following plans calls for action before, during, and after
catastrophes with a focus on saving lives, reducing property losses, and conserving
resources during recovery? - ✔✔Crisis management plan
✔✔Mathias Manufacturing suffered a major business disruption due to a fire at one of
its locations. Management has set up a center of operations with the business
intelligence information available to test various production scenarios. Mathias is in
which one of the following stages of strategic redeployment planning? - ✔✔Alternative
marketing stage
✔✔Which one of the following stages of a redeployment plan is designed to protect
people, physical assets, and reputation? - ✔✔Emergency stage
✔✔The focus of risk quadrants is different from the focus of risk classifications in
general. While the classifications of risk focus on some aspect of the risk itself, the four
quadrants of risk focus on - ✔✔The source of risk and who has traditionally managed it
✔✔Regarding diversifiable and nondiversifiable risk, which one of the following
statements is accurate? - ✔✔Systemic risks are generally nondiversifiable.
✔✔Business Process Management (BPM) - ✔✔A systematic, iterative plan to analyze
and improve business processes through life-cycle phases to achieve long-term goals
and client satisfaction.
✔✔T or F? Business process management is successfully completed when a process
(or process improvement) is deemed to be a total success - ✔✔False. Regardless of
whether a process is a total success, the five-step BPM life cycle is not complete. In
fact, one of the major benefits of the BPM life cycle is that it promotes continual
improvement
, ✔✔Five steps of BPM Life Cycle - ✔✔1) Design/redesign processes
2) Model scenarios
3) Execute process changes
4) Monitor results
5) Optimize processes
✔✔Which one of the following statements regarding the structure and role of a board of
directors is true? - ✔✔Members of the board elect a director to be chairman of the
board
✔✔All of the following are mechanisms to align manager and shareholder interests,
EXCEPT - ✔✔Expansion and growth
✔✔Which one of the following categories of agency costs is assumed by managers? -
✔✔Bonding costs
✔✔Which one of the following is an example of a data governance tool? - ✔✔external
policy
✔✔Internal data entry processes that capture accounting transactions, customer data or
other operational transactions are called - ✔✔Data capture
✔✔Which one of the following is a data governance committee (DGC) responsibility? -
✔✔A data governance committee ensures there are few conflicts or redundancies in
data standards and practices.
✔✔In accordance with the Three Lines of Defense Model, how does risk management
act as the second line of defense? - ✔✔Risk management supports and monitors
operational management's implementation of risk management practices
✔✔Management controls - ✔✔Coordinate resource allocation, motivate performance,
and measure outcomes — capital budgeting, expense variance reviews, balanced
scorecards
✔✔Risk Tolerance - ✔✔Amount of risk an organization is able to bear given its financial
capacity
✔✔Rules based or principles based: Restaurant employees must wash their hands
every they use the restroom - ✔✔Rules based
✔✔Rules based or principles based: Restaurant managers must ensure that employees
maintain high standards of hygiene - ✔✔Principles based
