ARM 54 Practice Exam 200 Questions with 100% Verified Correct Answers Updated 2025

ARM 54 Practice Exam 200 Questions with 100% Verified Correct Answers Updated 2025 Risks from accidental loss, including the possibility of loss or no loss defines - Correct Answer Hazard risk The traditional definition of risk management reflects the traditional concept of risk as - Correct Answer Negative Which one of the following statements is true regarding the evolution of risk and risk management? - Correct Answer The definition of risk has evolved to include positive as well as negative attributes The Dodd-Frank Act, Solvency II, and Basel III all have the purpose of reducing - Correct Answer Systemic risk Which one of the following is a common risk management benefit the entire economy would realize as a consequence of a risk management program? - Correct Answer Reduced waste of resources-Risk management reduces waste of resources. Allocating resources for potential losses is a cost because the resources cannot be used for other purposes that could promote growth. To an insured organization, which one of the following is an example of a cost of risk associated with an asset or activity? - Correct Answer Cost of sprinkler systems One benefit of risk management to the economy is the reduction of the potential for a major disruption in the functioning of financial markets and the financial system. This risk that is reduced is called - Correct Answer Systemic risk Which one of the following risk management program goals enhances an organization's reputation? - Correct Answer Social responsibility-Social responsibility is the risk management program goal that will most likely enhance an organization's reputation. An organization must meet the standard of care that it owes to others in order to ensure that - Correct Answer Legal obligations are satisfied-An organization must meet the standard of care that it owes to others in order to ensure that legal obligations are satisfied. Risk management programs should - Correct Answer Operate economically and efficiently