ARM 400 Practice Exams Questions with 100% Correct Answers

According to the law of large numbers, as the number of exposure units insured increases, Correct Answer The relative accuracy of predictions about future losses increases The fundamental purpose of a risk management framework is to Correct Answer Integrate risk management throughout the organization Which one of the following provides a measure of the maximum potential damage associated with an occurrence? Correct Answer Exposure Aligning risks with the organization's risk appetite defines Correct Answer Tolerable uncertainty An organization must meet the standard of care that it owes to others in order to ensure that Correct Answer Legal obligations are satisfied Julian was having a conversation with Tania, one of his employees. At this point, Julian said, "What I hear you say is that you would like to take on more responsibility. Is that correct?" Which one of the following elements of active listening was Julian illustrating? Correct Answer Response 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 order processing computer software. It has added two trucks to its fleet of delivery vehicles. Lastly, it has purchased a new production machine that will allow it to launch a new product line. Which one of the following company projects is the most speculative risk? Correct Answer The new production machine Encouraging the expression of feelings as well as facts and following up with employees on the problems they report are two ways that managers and supervisors can Correct Answer Cultivate two-way communication Which one of the following risk management objectives is critical for a manufacturer seeking new capital from investors, stockholders, and creditors? Correct Answer Reduce the deterrent effects of hazard risks Which one of the following is a tool that can be used by fraud investigators to compare documents and analyze notes? Correct Answer Text mining