ARM 400 Segment C Assignment 8
Comprehensive Questions (Frequently
Tested) with Verified Answers
Which one of the following regulatory approaches provides an organization with more certainty
and greater predictability? - Answer: Rules-based
Which one of the following statements is true regarding Basel III? - Answer: Basel III was
developed to address both the risk of individual organizations and systemic risk in the banking
sector.
Based on Basel III principles, which one of the following groups should take the lead in
establishing a strong risk management culture? - Answer: Board of directors
Which one of the following standards was developed in response to the financial crisis that
began in 2007? - Answer: Basel III
All of the following are true regarding the Federal Sentencing Guidelines, EXCEPT: - Answer:
They are mandatory.
Examples of Principles-Based Regulations include all of the following, EXCEPT: - Answer:
Restaurant employees must wash their hands every time they use the restroom.
Which one of the following statements about standards—risk management, Solvency II, and
Basel II and III— is true? - Answer: Many risk management standards, such as ISO 31000, are
voluntary.
Comprehensive Questions (Frequently
Tested) with Verified Answers
Which one of the following regulatory approaches provides an organization with more certainty
and greater predictability? - Answer: Rules-based
Which one of the following statements is true regarding Basel III? - Answer: Basel III was
developed to address both the risk of individual organizations and systemic risk in the banking
sector.
Based on Basel III principles, which one of the following groups should take the lead in
establishing a strong risk management culture? - Answer: Board of directors
Which one of the following standards was developed in response to the financial crisis that
began in 2007? - Answer: Basel III
All of the following are true regarding the Federal Sentencing Guidelines, EXCEPT: - Answer:
They are mandatory.
Examples of Principles-Based Regulations include all of the following, EXCEPT: - Answer:
Restaurant employees must wash their hands every time they use the restroom.
Which one of the following statements about standards—risk management, Solvency II, and
Basel II and III— is true? - Answer: Many risk management standards, such as ISO 31000, are
voluntary.