ARM 400 Exam Practice | QUESTIONS WITH CORRECT
SOLUTION | 100% RATED CORRECT | ALREADY GRADED A+
2025 LATEST UPDATED
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?
A. Seek feedback from stakeholders
B. Stay focused on the organization's objectives
C. Define the organization's risk appetite
D. Enhance stakeholders' confidence in the process - ✔✔ANS D
Which of the following risk management program goals is an essential goa
for all public entities?
A. Earning stability
B. Continuity of operations
C. Growth
D. Survival - ✔✔ANS B
The traditional definition of risk management reflects the traditional concep
of risk as
A. Both positive and negative.
B. Negative.
,C. Uncontrollable.
D. Strategic. - ✔✔ANS B
During the past year, International Toys has undertaken four capital projects
The company has renovated and refurbished one of its aging warehouse
buildings. It has purchased the most recent version of its current orde
processing computer software. It has added two trucks to its fleet of deliver
vehicles. Lastly, it has purchased a new production machine that will allow i
to launch a new product line. Which one of the following company projects is
the most speculative risk?
A. The two new trucks
B. The warehouse refurbishment
C. The software upgrade
D. The new production machine - ✔✔ANS D
Which one of the following statements is true regarding the basic measures
that apply to risk management?
A. Consequences measure the degree to which an occurrence could positively
or negatively affect an organization.
B. Hedging is a risk management strategy that can reduce the risk o
correlation.
C. Risk increases as volatility decreases.
D. Longer time horizons are generally less risky that shorter ones. - ✔✔ANS A
Which one of the following provides a measure of the maximum potentia
damage associated with an occurrence?
A. Exposure
B. Duration
,C. Underwriting risk
D. Maximum probable loss - ✔✔ANS A
Samuel was recently hired as a risk management professional for Parke
Property Management. He has been asked by senior management to review
the organization's current insurance policies to make sure that the
organization is adequately protected, and also see if there are an
opportunities to save on the premiums. Samuel must do which one of the
following through internal communication before he will be able to complete
this task?
A. Determine the organization's risk appetite
B. Identify all of the risks that the organization faces
C. Earn the confidence of the organization's board of directors
D. Become familiar with industry regulations - ✔✔ANS A
Catastrophes such as recent earthquakes and the 2011 tsunami in Japan
pointed out a need for many organizations to evaluate and manage their
A. Supply-chain risk.
B. Derivative risk.
C. Compliance risk.
D. Political risk. - ✔✔ANS A
Risk management professionals must collaborate with data analysts during
which two steps of the risk management process?
A. Treat risks and monitor risk treatments
B. Scan the environment and analyze risks
C. Analyze risks and monitor risk treatments
, D. Identify risks and treat risks - ✔✔ANS C
Asking a question such as "How do you think this will work out?" can help a
speaker do which one of the following?
A. Request feedback and determine if the message has been understood
B. Gain the support of executives and decision makers
C. Build trust among a diverse group of individuals
D. Deliver a message that recipients don't want to hear - ✔✔ANS A
Carla, the risk manager, was asked by senior management to deliver a
presentation on cyber risk at an all employees meeting. Even though she was
only allotted 30 minutes for her presentation, Carla felt that cyber risk was a
very real risk for the corporation and she wanted employees to leave with
some fear of it. She wanted to provide employees with as much technica
information as possible, and familiarize them with all of the important jargon
Less than 20 minutes into her presentation, Carla could tell that many of the
employees were not paying any attention to her presentation. Which one o
the following steps in the communication process had Carla failed to
consider?
A. Pay attention to your body language
B. Ask for feedback
C. Analyze your audience
D. Set a clear communication objective - ✔✔ANS C
Before speaking with a group or individual, the speaker should think abou
what he or she wants the other person(s) to do as a result of the conversation
Which one of the following steps in the communication process does the
speaker complete by doing this?
SOLUTION | 100% RATED CORRECT | ALREADY GRADED A+
2025 LATEST UPDATED
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?
A. Seek feedback from stakeholders
B. Stay focused on the organization's objectives
C. Define the organization's risk appetite
D. Enhance stakeholders' confidence in the process - ✔✔ANS D
Which of the following risk management program goals is an essential goa
for all public entities?
A. Earning stability
B. Continuity of operations
C. Growth
D. Survival - ✔✔ANS B
The traditional definition of risk management reflects the traditional concep
of risk as
A. Both positive and negative.
B. Negative.
,C. Uncontrollable.
D. Strategic. - ✔✔ANS B
During the past year, International Toys has undertaken four capital projects
The company has renovated and refurbished one of its aging warehouse
buildings. It has purchased the most recent version of its current orde
processing computer software. It has added two trucks to its fleet of deliver
vehicles. Lastly, it has purchased a new production machine that will allow i
to launch a new product line. Which one of the following company projects is
the most speculative risk?
A. The two new trucks
B. The warehouse refurbishment
C. The software upgrade
D. The new production machine - ✔✔ANS D
Which one of the following statements is true regarding the basic measures
that apply to risk management?
A. Consequences measure the degree to which an occurrence could positively
or negatively affect an organization.
B. Hedging is a risk management strategy that can reduce the risk o
correlation.
C. Risk increases as volatility decreases.
D. Longer time horizons are generally less risky that shorter ones. - ✔✔ANS A
Which one of the following provides a measure of the maximum potentia
damage associated with an occurrence?
A. Exposure
B. Duration
,C. Underwriting risk
D. Maximum probable loss - ✔✔ANS A
Samuel was recently hired as a risk management professional for Parke
Property Management. He has been asked by senior management to review
the organization's current insurance policies to make sure that the
organization is adequately protected, and also see if there are an
opportunities to save on the premiums. Samuel must do which one of the
following through internal communication before he will be able to complete
this task?
A. Determine the organization's risk appetite
B. Identify all of the risks that the organization faces
C. Earn the confidence of the organization's board of directors
D. Become familiar with industry regulations - ✔✔ANS A
Catastrophes such as recent earthquakes and the 2011 tsunami in Japan
pointed out a need for many organizations to evaluate and manage their
A. Supply-chain risk.
B. Derivative risk.
C. Compliance risk.
D. Political risk. - ✔✔ANS A
Risk management professionals must collaborate with data analysts during
which two steps of the risk management process?
A. Treat risks and monitor risk treatments
B. Scan the environment and analyze risks
C. Analyze risks and monitor risk treatments
, D. Identify risks and treat risks - ✔✔ANS C
Asking a question such as "How do you think this will work out?" can help a
speaker do which one of the following?
A. Request feedback and determine if the message has been understood
B. Gain the support of executives and decision makers
C. Build trust among a diverse group of individuals
D. Deliver a message that recipients don't want to hear - ✔✔ANS A
Carla, the risk manager, was asked by senior management to deliver a
presentation on cyber risk at an all employees meeting. Even though she was
only allotted 30 minutes for her presentation, Carla felt that cyber risk was a
very real risk for the corporation and she wanted employees to leave with
some fear of it. She wanted to provide employees with as much technica
information as possible, and familiarize them with all of the important jargon
Less than 20 minutes into her presentation, Carla could tell that many of the
employees were not paying any attention to her presentation. Which one o
the following steps in the communication process had Carla failed to
consider?
A. Pay attention to your body language
B. Ask for feedback
C. Analyze your audience
D. Set a clear communication objective - ✔✔ANS C
Before speaking with a group or individual, the speaker should think abou
what he or she wants the other person(s) to do as a result of the conversation
Which one of the following steps in the communication process does the
speaker complete by doing this?
