ARM 400 TEST QUESTIONS AND ANSWERS

ARM 400 TEST QUESTIONS AND ANSWERS The fundamental purpose of a risk management framework is to - ANSWER-Integrate risk management throughout the organization Company G is a manufacturer of high profile golf equipment. The risk management professional for Company G is concerned about loss of business related to product design. Failing to respond to changing customer demand and preferences in the design of golf clubs could cost Company G significant market share. Categorized according to the quadrants of risk, this exposure to loss is classified as - ANSWER-Strategic Risk Aligning risks with the organization's risk appetite defines - ANSWER-Tolerable uncertainty An organization must meet the standard of care that it owes to others in order to ensure that - ANSWER-Legal obligations are satisfied When communicating a decision up the organization's chain of command, consulting with outside experts can help a risk management professional do which one of the following? - ANSWER-Enhance stakeholders' confidence in the process Which one of the following statements is true with regard to preventive analytics? - ANSWER-Preventive analytics uses smart products and data analytics to identify root loss causes and their implications. Autonomous Vehicle Applications (AVA) is a start-up company that develops safety technologies that can be sold to companies that are producing autonomous vehicles. One technology AVA is developing allows an autonomous vehicle to detect, extract, and analyze images; and then to respond to the images. For example, the technology would detect a presence in a crosswalk, extract the image, and a computer would analyze the image. When the image was det The fundamental purpose of a risk management framework is to - ANSWER-Integrate risk management throughout the organization Company G is a manufacturer of high profile golf equipment. The risk management professional for Company G is concerned about loss of business related to product design. Failing to respond to changing customer demand and preferences in the design of golf clubs could cost Company G significant market share. Categorized according to the quadrants of risk, this exposure to loss is classified as - ANSWER-Strategic Risk Aligning risks with the organization's risk appetite defines - ANSWER-Tolerable uncertainty An organization must meet the standard of care that it owes to others in order to ensure that - ANSWER-Legal obligations are satisfied When communicating a decision up the organization's chain of command, consulting with outside experts can help a risk management professional do which one of the following? - ANSWER-Enhance stakeholders' confidence in the process Which one of the following statements is true with regard to preventive analytics? - ANSWER-Preventive analytics uses smart products and data analytics to identify root loss causes and their implications. Autonomous Vehicle Applications (AVA) is a start-up company that develops safety technologies that can be sold to companies that are producing autonomous vehicles. One technology AVA is developing allows an autonomous vehicle to detect, extract, and analyze images; and then to respond to the images. For example, the technology would detect a presence in a crosswalk, extract the image, and a computer would analyze the image. When the image was det