A.R.M. 400 Practice Exam Questions and Answers
100% Correct Spring Fall 2025 Edition
Guaranteed Grade A+
Which one of the following statements about the use of drones is true?
A. The use of drones is limited to military applications.
B. Space and weight limitations prevent drones from being equipped with sensors and cameras.
C. Drones may be equipped with cameras that relay data in real-time.
D. The reliance on humans to operate drones severely limits their application for commercial uses.
C
Many auto manufacturers have automated a portion of their assembly lines by introducing a smart
product. The smart product performs repetitive tasks, such as making the same weld on each vehicle
frame as it passes the smart product. These smart products, which can be fixed or mobile, reduce
repetitive motion injuries that humans might suffer. They can also be used to perform dangerous tasks
and in heavy-lifting jobs. These smart products are called
A. Wearables.
B. Automated sensors.
C. Robots.
D. Drones.
C
Take Your Order (TYO) is a company that specializes in taking product orders for vendors. The
manufacturer of a product can run a television or internet ad for a product with a toll-free number.
Customer calls for the products are routed to TYO, where one hundred operators are available to
receive the calls. Each operator is assigned a cubicle with a computer terminal, video display monitor,
and a telephone. TYO experienced high workers compensation claims from its operators, claiming neck
strain, eye strain, and wrist pain. In an effort to reduce such injuries, TYO evaluated each operator's
work area. The height of chairs and video monitors were adjusted, curved computer keyboards and
wrist-rests were provided, and the telephones were replaced with audio headsets. Workers
compensation costs dropped significantly. The science of designing work spaces based on interaction
between people and the equipment in the work space is called
A. Smart systems.
B. Artificial intelligence.
C. Data analytics.
D. Ergonomics.
D
A municipal water plant installed water flow sensors and water pressure sensors on the water pipes
leaving the plant. The sensors make sure water is flowing properly and that there are no leaks or clogs
which could produce a loss. These types of sensors are
,A. Thermal sensors.
B. Mechanical sensors.
C. Biochemical sensors.
D. Radiant sensors.
B
In addition to metal detectors, many airports have installed a second type of scanning technology for
checked baggage and cargo. The checked bags and cargo pass through a portal with scanners
programmed to detect and test for explosive trace fumes. These scanners, which detect explosives
based on air samples, are an example of what type of sensor used for risk assessment and control?
A. Radiant sensors.
B. Thermal sensors.
C. Biochemical sensors.
D. Mechanical sensors.
C
AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina, and Georgia. The
company has compiled a policyowner data base that can be used to send text messages when
hurricanes approach. The company provides early warnings, storm updates from the National Weather
Service, and hurricane safety measures. The company credits the system with reduced hurricane claims.
The use of the texting system is an example of
A. Preventive analytics.
B. Artificial intelligence.
C. Sensor networks.
D. Experience rating.
A
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance
Company decided to automate most of its personal lines underwriting function. The company now uses
standardized application forms that are submitted electronically to one of the company's regional
offices. At each regional office, a computer with a scanner reads the applications. The computer has
been programmed with acceptable answers to the questions. If the answers on the application are all
acceptable, the policy is automatically issued. Rejected applications are automatically forwarded to a
human underwriter who reviews them. The use of this technology has reduced the company's expense
ratio by two and a half percent, and reduced the time it takes to issue a policy. ABC Insurance
Company's use of computers to evaluate applications electronically is an application of
A. Radiant sensors.
B. Actuator technology.
C. Risk management information systems.
D. Artificial intelligence.
D
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 determined to be a human being, the vehicle
would slow down or stop until the crosswalk was clear. This technology, which is designed to capture
and analyze images, and to act on the recognition of the image; is called
A. Visual acuity.
B. Computer vision.
C. Accelerometer technology.
D. Transducer technology.
B
Which one of the following uses infrared light to detect nearby objects?
A. Wearables
B. Drones
C. Robots
D. Lidar
D
Last year, three Metro City firemen died responding to a fire at a chemical plant, when they were
overcome by toxic fumes. In response, Metro City is purchasing advanced first responder gear. It
includes special flame retardant suits with chemical and explosive fume sensors, air quality sensors, and
heat sensors. Responders will also wear special watches that will track a responder's pulse, respiration,
and blood pressure; and helmets that include video cameras. All of these sensors will feed data to a
computer in real-time. The computer will analyze the data and issue threat levels and evacuation orders,
if necessary. The protective gear Metro City will purchase and the data transmission and analysis
capability illustrate the use of
A. Insurtech.
B. Smart products.
C. Risk management information systems.
D. Catastrophe modeling.
B
The emerging technologies applied to risk assessment and control link the physical domain to the virtual
domain. Together, these domains linked by the emerging technologies create a
A. Connected ecosystem.
B. Risk management information system.
C. Smart system.
D. Risk management matrix.
A
Precision Electronic Components manufactures circuit boards, microchips, and other electronic
products. Given the precision necessary for their products, the manufacturing environment must be
controlled. Temperature, humidity, static electricity and other factors must be monitored. After losing
several batches of products due to human monitoring failures and imprecise adjustments, the company
moved to a system of sensors. The sensors monitor and regulate temperature, humidity, static
electricity, and other factors. The sensors transmit data to and from each other, and the manufacturing
environment is continuously adjusted to assure production is successful. The network of sensors
, transmitting data and the autonomous corrective actions without human interaction is called
A. Sensitivity analysis.
B. Computer-directed manufacturing.
C. Web-based manufacturing.
D. The Internet of Things.
D
It is necessary to assess the risk appetite of a business supplier prior to doing business because
understanding the risk appetite allows the organization to
A. Ascertain whether the relationship is a good fit.
B. Negotiate better prices and delivery times.
C. Better control its production.
D. Leverage its payments to the supplier to the organization's advantage
A
An organization evaluates key stakeholders' attitude toward risk in order to
A. Understand what risks are acceptable and to develop an effective enterprise-wide risk management
program.
B. Understand acceptable risks and gauge its ability to attract new shareholders.
C. Understand acceptable risks and gauge its ability to raise capital.
D. Understand the risk appetite in order to determine what information is disseminated.
A
A speaker imparts information in verbal communications by
A. Using appropriate facial expressions and gestures while other parties express their opinions and
concerns.
B. Expressing facts and emotions quickly, inviting written questions for discussion at a future session.
C. Having good listening skills and expressing facts and emotions through words and sometimes visual
displays.
D. Listening and verbally responding with anecdotes of prior meetings, leveraging humor as opposed to
facts for discussion.
C
Which one of the following should be part of an organization's standard operating procedures (SOPs)
concerning external stakeholder communications?
A. Instructions to always use written communication, rather than verbal or nonverbal communication
B. Instructions regarding what types of information can and cannot be released
C. Instructions requiring the use of formal, rather than informal communication
D. Instructions to avoid the use of social media
B
North American Furnishings has been in business for 18 years. The organization's primary objectives are
profitability and bottom-line results. It always sets aggressive goals. North American Furnishings values
its customer bases. Which one of the following types of corporate culture exists at North American
Furnishings?
A. Hierarchy
100% Correct Spring Fall 2025 Edition
Guaranteed Grade A+
Which one of the following statements about the use of drones is true?
A. The use of drones is limited to military applications.
B. Space and weight limitations prevent drones from being equipped with sensors and cameras.
C. Drones may be equipped with cameras that relay data in real-time.
D. The reliance on humans to operate drones severely limits their application for commercial uses.
C
Many auto manufacturers have automated a portion of their assembly lines by introducing a smart
product. The smart product performs repetitive tasks, such as making the same weld on each vehicle
frame as it passes the smart product. These smart products, which can be fixed or mobile, reduce
repetitive motion injuries that humans might suffer. They can also be used to perform dangerous tasks
and in heavy-lifting jobs. These smart products are called
A. Wearables.
B. Automated sensors.
C. Robots.
D. Drones.
C
Take Your Order (TYO) is a company that specializes in taking product orders for vendors. The
manufacturer of a product can run a television or internet ad for a product with a toll-free number.
Customer calls for the products are routed to TYO, where one hundred operators are available to
receive the calls. Each operator is assigned a cubicle with a computer terminal, video display monitor,
and a telephone. TYO experienced high workers compensation claims from its operators, claiming neck
strain, eye strain, and wrist pain. In an effort to reduce such injuries, TYO evaluated each operator's
work area. The height of chairs and video monitors were adjusted, curved computer keyboards and
wrist-rests were provided, and the telephones were replaced with audio headsets. Workers
compensation costs dropped significantly. The science of designing work spaces based on interaction
between people and the equipment in the work space is called
A. Smart systems.
B. Artificial intelligence.
C. Data analytics.
D. Ergonomics.
D
A municipal water plant installed water flow sensors and water pressure sensors on the water pipes
leaving the plant. The sensors make sure water is flowing properly and that there are no leaks or clogs
which could produce a loss. These types of sensors are
,A. Thermal sensors.
B. Mechanical sensors.
C. Biochemical sensors.
D. Radiant sensors.
B
In addition to metal detectors, many airports have installed a second type of scanning technology for
checked baggage and cargo. The checked bags and cargo pass through a portal with scanners
programmed to detect and test for explosive trace fumes. These scanners, which detect explosives
based on air samples, are an example of what type of sensor used for risk assessment and control?
A. Radiant sensors.
B. Thermal sensors.
C. Biochemical sensors.
D. Mechanical sensors.
C
AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina, and Georgia. The
company has compiled a policyowner data base that can be used to send text messages when
hurricanes approach. The company provides early warnings, storm updates from the National Weather
Service, and hurricane safety measures. The company credits the system with reduced hurricane claims.
The use of the texting system is an example of
A. Preventive analytics.
B. Artificial intelligence.
C. Sensor networks.
D. Experience rating.
A
In an effort to reduce expenses, increase profitability, and reduce human errors; ABC Insurance
Company decided to automate most of its personal lines underwriting function. The company now uses
standardized application forms that are submitted electronically to one of the company's regional
offices. At each regional office, a computer with a scanner reads the applications. The computer has
been programmed with acceptable answers to the questions. If the answers on the application are all
acceptable, the policy is automatically issued. Rejected applications are automatically forwarded to a
human underwriter who reviews them. The use of this technology has reduced the company's expense
ratio by two and a half percent, and reduced the time it takes to issue a policy. ABC Insurance
Company's use of computers to evaluate applications electronically is an application of
A. Radiant sensors.
B. Actuator technology.
C. Risk management information systems.
D. Artificial intelligence.
D
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 determined to be a human being, the vehicle
would slow down or stop until the crosswalk was clear. This technology, which is designed to capture
and analyze images, and to act on the recognition of the image; is called
A. Visual acuity.
B. Computer vision.
C. Accelerometer technology.
D. Transducer technology.
B
Which one of the following uses infrared light to detect nearby objects?
A. Wearables
B. Drones
C. Robots
D. Lidar
D
Last year, three Metro City firemen died responding to a fire at a chemical plant, when they were
overcome by toxic fumes. In response, Metro City is purchasing advanced first responder gear. It
includes special flame retardant suits with chemical and explosive fume sensors, air quality sensors, and
heat sensors. Responders will also wear special watches that will track a responder's pulse, respiration,
and blood pressure; and helmets that include video cameras. All of these sensors will feed data to a
computer in real-time. The computer will analyze the data and issue threat levels and evacuation orders,
if necessary. The protective gear Metro City will purchase and the data transmission and analysis
capability illustrate the use of
A. Insurtech.
B. Smart products.
C. Risk management information systems.
D. Catastrophe modeling.
B
The emerging technologies applied to risk assessment and control link the physical domain to the virtual
domain. Together, these domains linked by the emerging technologies create a
A. Connected ecosystem.
B. Risk management information system.
C. Smart system.
D. Risk management matrix.
A
Precision Electronic Components manufactures circuit boards, microchips, and other electronic
products. Given the precision necessary for their products, the manufacturing environment must be
controlled. Temperature, humidity, static electricity and other factors must be monitored. After losing
several batches of products due to human monitoring failures and imprecise adjustments, the company
moved to a system of sensors. The sensors monitor and regulate temperature, humidity, static
electricity, and other factors. The sensors transmit data to and from each other, and the manufacturing
environment is continuously adjusted to assure production is successful. The network of sensors
, transmitting data and the autonomous corrective actions without human interaction is called
A. Sensitivity analysis.
B. Computer-directed manufacturing.
C. Web-based manufacturing.
D. The Internet of Things.
D
It is necessary to assess the risk appetite of a business supplier prior to doing business because
understanding the risk appetite allows the organization to
A. Ascertain whether the relationship is a good fit.
B. Negotiate better prices and delivery times.
C. Better control its production.
D. Leverage its payments to the supplier to the organization's advantage
A
An organization evaluates key stakeholders' attitude toward risk in order to
A. Understand what risks are acceptable and to develop an effective enterprise-wide risk management
program.
B. Understand acceptable risks and gauge its ability to attract new shareholders.
C. Understand acceptable risks and gauge its ability to raise capital.
D. Understand the risk appetite in order to determine what information is disseminated.
A
A speaker imparts information in verbal communications by
A. Using appropriate facial expressions and gestures while other parties express their opinions and
concerns.
B. Expressing facts and emotions quickly, inviting written questions for discussion at a future session.
C. Having good listening skills and expressing facts and emotions through words and sometimes visual
displays.
D. Listening and verbally responding with anecdotes of prior meetings, leveraging humor as opposed to
facts for discussion.
C
Which one of the following should be part of an organization's standard operating procedures (SOPs)
concerning external stakeholder communications?
A. Instructions to always use written communication, rather than verbal or nonverbal communication
B. Instructions regarding what types of information can and cannot be released
C. Instructions requiring the use of formal, rather than informal communication
D. Instructions to avoid the use of social media
B
North American Furnishings has been in business for 18 years. The organization's primary objectives are
profitability and bottom-line results. It always sets aggressive goals. North American Furnishings values
its customer bases. Which one of the following types of corporate culture exists at North American
Furnishings?
A. Hierarchy
