ARM 400 Risk in an Evolving World 2025
Latest Exam
ARM 400 Risk in an Evolving World 2025
Latest Exam 200 Questions and Correct
Detailed Answers with Rationales / ARM 400
Exam Practice Test Bank
When comparing principles-based regulation with rules-based regulation, which one of the following
statements is correct?
A. Principles-based regulation emphasizes conformity rather than the outcome.
B. Principles-based regulation requires less communication between the regulator and regulated
entity.
C. Principles-based regulation responds more quickly to a changing environment.
D. Principles-based regulation tends to use a one-size-fits-all approach. –
Correct Answer :C. Principles-based regulation responds more quickly to a changing environment.
Which one of the following best describes how internal audit compliments a risk management
initiative?
A. Risk managers identify, assess and prioritize risks with the assistance of internal audit. Internal
audit requires that the controls for the risks are tested.
B. Internal audit tests controls for risks identified by risk managers. Risk management and internal
audit are similar in that they are both charged with protecting the assets of an organization.
C. Internal audit tests the controls initiated by the risk management team. The risk management
team reviews the results and responds to internal audit on the control assessment.
D. Risk managers identify, assess and prioritize risks. Internal audit develops a risk-based auditing
plan that addresses material risks to an organization. –
Correct Answer :D. Risk managers identify, assess and prioritize risks. Internal audit develops a risk-
based auditing plan that addresses material risks to an organization.
A+ TEST BANK 1
, ARM 400 Risk in an Evolving World 2025
Latest Exam
Which one of the following best describes why the Institute for Internal Auditors (IIA) has designed
standards addressing the need for internal audit to evaluate the effectiveness of risk management?
A. Audits may be self-serving to an organization depending on the experience level of an auditor. By
indicating specific criteria, an auditor should be able to conduct a valid audit.
B. Audits are objective and independent of the politics of an organization. A pronouncement assists
the auditor by defining review criteria.
C. Audits are conducted under diverse legal and cultural environments. Requiring an auditor to
validate particular points ensures that auditors and their activities meet their responsibilities.
D. Audits are conducted annually in many organizations. Requiring an auditor to validate the findings
of prior years provides a comfort level to stakeholders. –
Correct Answer :C. Audits are conducted under diverse legal and cultural environments. Requiring an
auditor to validate particular points ensures that auditors and their activities meet their
responsibilities.
Which one of the following categories of agency costs is assumed by managers?
A. Advertising costs
B. Bonding costs
C. Incentive alignment costs
D. Monitoring costs –
Correct Answer :B. Bonding costs
Which one of the following continuity strategy models involves maintaining two or more active sites
that are geographically dispersed?
A. Active back-up model
B. Prioritization model
C. Split operations model
D. Risk transfer model –
A+ TEST BANK 2
, ARM 400 Risk in an Evolving World 2025
Latest Exam
Correct Answer :C. Split operations model
Which one of the following defines the duties of a data steward?
A. A data steward is a project manager.
B. A data steward is an experienced business analyst.
C. A data steward measures data compliance.
D. A data steward provides technological support. –
Correct Answer :B. A data steward is an experienced business analyst.
Which one of the following groups in an organization are often in the best position to anticipate
possible risks from vendors or customers?
A. Information technology consultants
B. Upper management
C. Human resources staff
D. Front-line workers
- Correct Answer :D. Front-line workers
Which one of the following is a critical component to achieving true operational resiliency?
A. A top management view of potential risks
B. A culture of openness and trust
C. A long-term commitment to a single vendor
D. A facilities based operation –
Correct Answer :B. A culture of openness and trust
A+ TEST BANK 3
, ARM 400 Risk in an Evolving World 2025
Latest Exam
Which one of the following is a main characteristic of effective key risk indicators (KRIs)?
A. They define the boundaries of risk tolerance.
B. They are lagging in nature.
C. They are based on quantifiable information.
D. They measure progress toward achieving objectives. –
Correct Answer :C. They are based on quantifiable information.
Which one of the following is an element of a data security program?
A. Increasing the overall efficiency of data systems.
B. Storing data back-ups off site.
C. Installing agile project management.
D. Implementing a data governance program. –
Correct Answer :B. Storing data back-ups off site.
Which one of the following is an example of a data governance tool?
A. Data integration
B. Metadata
C. Risk Management
D. External Policy –
Correct Answer :D. External Policy
Which one of the following is an example of a principles-based traffic control regulation?
A. Driver and passengers must wear a safety belt when the car is in motion
A+ TEST BANK 4
Latest Exam
ARM 400 Risk in an Evolving World 2025
Latest Exam 200 Questions and Correct
Detailed Answers with Rationales / ARM 400
Exam Practice Test Bank
When comparing principles-based regulation with rules-based regulation, which one of the following
statements is correct?
A. Principles-based regulation emphasizes conformity rather than the outcome.
B. Principles-based regulation requires less communication between the regulator and regulated
entity.
C. Principles-based regulation responds more quickly to a changing environment.
D. Principles-based regulation tends to use a one-size-fits-all approach. –
Correct Answer :C. Principles-based regulation responds more quickly to a changing environment.
Which one of the following best describes how internal audit compliments a risk management
initiative?
A. Risk managers identify, assess and prioritize risks with the assistance of internal audit. Internal
audit requires that the controls for the risks are tested.
B. Internal audit tests controls for risks identified by risk managers. Risk management and internal
audit are similar in that they are both charged with protecting the assets of an organization.
C. Internal audit tests the controls initiated by the risk management team. The risk management
team reviews the results and responds to internal audit on the control assessment.
D. Risk managers identify, assess and prioritize risks. Internal audit develops a risk-based auditing
plan that addresses material risks to an organization. –
Correct Answer :D. Risk managers identify, assess and prioritize risks. Internal audit develops a risk-
based auditing plan that addresses material risks to an organization.
A+ TEST BANK 1
, ARM 400 Risk in an Evolving World 2025
Latest Exam
Which one of the following best describes why the Institute for Internal Auditors (IIA) has designed
standards addressing the need for internal audit to evaluate the effectiveness of risk management?
A. Audits may be self-serving to an organization depending on the experience level of an auditor. By
indicating specific criteria, an auditor should be able to conduct a valid audit.
B. Audits are objective and independent of the politics of an organization. A pronouncement assists
the auditor by defining review criteria.
C. Audits are conducted under diverse legal and cultural environments. Requiring an auditor to
validate particular points ensures that auditors and their activities meet their responsibilities.
D. Audits are conducted annually in many organizations. Requiring an auditor to validate the findings
of prior years provides a comfort level to stakeholders. –
Correct Answer :C. Audits are conducted under diverse legal and cultural environments. Requiring an
auditor to validate particular points ensures that auditors and their activities meet their
responsibilities.
Which one of the following categories of agency costs is assumed by managers?
A. Advertising costs
B. Bonding costs
C. Incentive alignment costs
D. Monitoring costs –
Correct Answer :B. Bonding costs
Which one of the following continuity strategy models involves maintaining two or more active sites
that are geographically dispersed?
A. Active back-up model
B. Prioritization model
C. Split operations model
D. Risk transfer model –
A+ TEST BANK 2
, ARM 400 Risk in an Evolving World 2025
Latest Exam
Correct Answer :C. Split operations model
Which one of the following defines the duties of a data steward?
A. A data steward is a project manager.
B. A data steward is an experienced business analyst.
C. A data steward measures data compliance.
D. A data steward provides technological support. –
Correct Answer :B. A data steward is an experienced business analyst.
Which one of the following groups in an organization are often in the best position to anticipate
possible risks from vendors or customers?
A. Information technology consultants
B. Upper management
C. Human resources staff
D. Front-line workers
- Correct Answer :D. Front-line workers
Which one of the following is a critical component to achieving true operational resiliency?
A. A top management view of potential risks
B. A culture of openness and trust
C. A long-term commitment to a single vendor
D. A facilities based operation –
Correct Answer :B. A culture of openness and trust
A+ TEST BANK 3
, ARM 400 Risk in an Evolving World 2025
Latest Exam
Which one of the following is a main characteristic of effective key risk indicators (KRIs)?
A. They define the boundaries of risk tolerance.
B. They are lagging in nature.
C. They are based on quantifiable information.
D. They measure progress toward achieving objectives. –
Correct Answer :C. They are based on quantifiable information.
Which one of the following is an element of a data security program?
A. Increasing the overall efficiency of data systems.
B. Storing data back-ups off site.
C. Installing agile project management.
D. Implementing a data governance program. –
Correct Answer :B. Storing data back-ups off site.
Which one of the following is an example of a data governance tool?
A. Data integration
B. Metadata
C. Risk Management
D. External Policy –
Correct Answer :D. External Policy
Which one of the following is an example of a principles-based traffic control regulation?
A. Driver and passengers must wear a safety belt when the car is in motion
A+ TEST BANK 4
