A.R.M. 400 EXAM TEST BANK NEWEST REAL EXAM
2024-2026 QUESTIONS WITH DETAILED CORRECT
VERIFIED ANSWERS GRADED 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 - CORRECT ANSWER✔✔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 - CORRECT ANSWER✔✔
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 technical 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 of 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 - CORRECT ANSWER✔✔C
Before speaking with a group or individual, the speaker should think about 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?
A. Deliver a message the recipient(s) want to hear
B. Set aside judgement
C. Set a clear communication objective
D. Analyze your audience - CORRECT ANSWER✔✔C
Which one of the following risk management objectives is critical for a
manufacturer seeking new capital from investors, stockholders, and creditors?
A. Anticipate and recognize emerging risks
B. Social responsibility
C. Reduce the deterrent effects of hazard risks
D. Eliminate downside risk - CORRECT ANSWER✔✔C
Which one of the following data capture tools has led to an explosion of risk
management innovation by allowing smart products to transmit data to each other
and to central hubs?
A. Blockchain
B. Cloud computing
C. Internet of Things
D. Artificial intelligence - CORRECT ANSWER✔✔C
Jean is the Risk Manager for a Fortune 1000 company. Her CFO has tasked her to
analyze vulnerabilities in the firm's supply chain. The adequacy of suppliers to
,meet an organization's needs would be an example of which one of the following
types of risk?
A. Financial risk
B. Strategic risk
C. Operating risk
D. Operational risk - CORRECT ANSWER✔✔D
An organization must meet the standard of care that it owes to others in order to
ensure that
A. Legal obligations are satisfied.
B. Post-loss goals are in place.
C. Operations are efficient.
D. Contracts are not breached. - CORRECT ANSWER✔✔A
According to the law of large numbers, as the number of exposure units insured
increases,
A. Fewer losses are expected to occur.
B. The size of the average loss declines.
C. The relative accuracy of predictions about future losses increases.
D. The probability of an underwriting loss increases. - CORRECT ANSWER✔✔C
Risk can be classified as diversifiable or nondiversifiable. Which one of the
following statements is true with respect to this type of risk classification?
A. Diversifiable risks tend not to be correlated so they can be managed through
diversification or spread of risk.
B. Systemic risks are generally diversifiable.
C. Private insurance tends to concentrate on nondiversifiable risks; government
insurance is often suitable for diversifiable risks.
D. Inflation, unemployment and natural disasters, such as hurricanes, are
examples of diversifiable risk. - CORRECT ANSWER✔✔A
, The fundamental purpose of a risk management framework is to
A. Maximize profits for all stakeholders.
B. Integrate risk management throughout the organization.
C. Define and eliminate potential losses.
D. Reduce the cost of risk. - CORRECT ANSWER✔✔B
Which one of the following is one of the five steps of the risk management
process?
A. Align and integrate
B. Establish accountability
C. Scan environment
D. Allocate resources - CORRECT ANSWER✔✔C
Which one of the following best explains how most smart products potentially
improve risk management?
A. They measure worker fatigue.
B. They scan and inspect structures for unsafe conditions.
C. They assess risks in dangerous areas.
D. They generate big data to which advanced analytics can be applied. - CORRECT
ANSWER✔✔D
Clear-Rite Company specializes in the clean-up of hazardous chemical spills.
Workers performing clean-up operations must use safety suits to prevent
exposure to the chemicals. The suits include pulse and respiration monitors, body
temperature sensors, and chemical sensors. The monitors and sensors report
data to a mobile operations center which is deployed to each clean-up site. The
pulse and respiration monitors and the sensors that are part of the protective
gear are called
A. Magnetometers.
2024-2026 QUESTIONS WITH DETAILED CORRECT
VERIFIED ANSWERS GRADED 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 - CORRECT ANSWER✔✔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 - CORRECT ANSWER✔✔
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 technical 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 of 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 - CORRECT ANSWER✔✔C
Before speaking with a group or individual, the speaker should think about 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?
A. Deliver a message the recipient(s) want to hear
B. Set aside judgement
C. Set a clear communication objective
D. Analyze your audience - CORRECT ANSWER✔✔C
Which one of the following risk management objectives is critical for a
manufacturer seeking new capital from investors, stockholders, and creditors?
A. Anticipate and recognize emerging risks
B. Social responsibility
C. Reduce the deterrent effects of hazard risks
D. Eliminate downside risk - CORRECT ANSWER✔✔C
Which one of the following data capture tools has led to an explosion of risk
management innovation by allowing smart products to transmit data to each other
and to central hubs?
A. Blockchain
B. Cloud computing
C. Internet of Things
D. Artificial intelligence - CORRECT ANSWER✔✔C
Jean is the Risk Manager for a Fortune 1000 company. Her CFO has tasked her to
analyze vulnerabilities in the firm's supply chain. The adequacy of suppliers to
,meet an organization's needs would be an example of which one of the following
types of risk?
A. Financial risk
B. Strategic risk
C. Operating risk
D. Operational risk - CORRECT ANSWER✔✔D
An organization must meet the standard of care that it owes to others in order to
ensure that
A. Legal obligations are satisfied.
B. Post-loss goals are in place.
C. Operations are efficient.
D. Contracts are not breached. - CORRECT ANSWER✔✔A
According to the law of large numbers, as the number of exposure units insured
increases,
A. Fewer losses are expected to occur.
B. The size of the average loss declines.
C. The relative accuracy of predictions about future losses increases.
D. The probability of an underwriting loss increases. - CORRECT ANSWER✔✔C
Risk can be classified as diversifiable or nondiversifiable. Which one of the
following statements is true with respect to this type of risk classification?
A. Diversifiable risks tend not to be correlated so they can be managed through
diversification or spread of risk.
B. Systemic risks are generally diversifiable.
C. Private insurance tends to concentrate on nondiversifiable risks; government
insurance is often suitable for diversifiable risks.
D. Inflation, unemployment and natural disasters, such as hurricanes, are
examples of diversifiable risk. - CORRECT ANSWER✔✔A
, The fundamental purpose of a risk management framework is to
A. Maximize profits for all stakeholders.
B. Integrate risk management throughout the organization.
C. Define and eliminate potential losses.
D. Reduce the cost of risk. - CORRECT ANSWER✔✔B
Which one of the following is one of the five steps of the risk management
process?
A. Align and integrate
B. Establish accountability
C. Scan environment
D. Allocate resources - CORRECT ANSWER✔✔C
Which one of the following best explains how most smart products potentially
improve risk management?
A. They measure worker fatigue.
B. They scan and inspect structures for unsafe conditions.
C. They assess risks in dangerous areas.
D. They generate big data to which advanced analytics can be applied. - CORRECT
ANSWER✔✔D
Clear-Rite Company specializes in the clean-up of hazardous chemical spills.
Workers performing clean-up operations must use safety suits to prevent
exposure to the chemicals. The suits include pulse and respiration monitors, body
temperature sensors, and chemical sensors. The monitors and sensors report
data to a mobile operations center which is deployed to each clean-up site. The
pulse and respiration monitors and the sensors that are part of the protective
gear are called
A. Magnetometers.
