ARM 400 Exam Questions and Answers Provides a measure of the maximum potential damage associated with an occurrence - Answer ✔️✔️-exposure ________________ is an essential goal for all public entities - Answer ✔️✔️-continuity of operat ions An organization must meet the standard of care that it owes to others in order to ensure that... - Answer ✔️✔️-legal obligations are satisfied What are the five steps of the risk management process? - Answer ✔️✔️-- scan environment - identify risk - analyze risk - treat risk - monitor and review Which one of the following statements is true regarding the evolution of risk and risk management? - Answer ✔️✔️-the definition of risk has evolved to include positive as well as negative attributes Risk manage ment professionals must collaborate with data analysts during which two steps of the risk management process? - Answer ✔️✔️-analyze risk and monitor risk treatments Jane always drives to visit her children who live 1,000 miles away. She enjoys driving and feels safer in a vehicle than on an airplane because she feels she has more control of her fate. The driving versus flying decision is an example of: - Answer ✔️✔️-subjective risk _______________ enhances an organizations reputation - Answer ✔️✔️-social re sponsibility Samuel was recently hired as a risk management professional for Parker Property Management. He has been asked by senior management to review the organizations current insurance policies to make sure that the organization is adequately protecte d, and also see if there are any opportunities to save on the premiums. Samuel must do which of the following through internal communication before he will be able to complete the task? - Answer ✔️✔️-determine the organizations risk appetite Billy owns a b each front cottage which has become his primary residence. Billy's primary concern is that his home will be hit by a hurricane and badly damaged or even destroyed. For Billy, this hurricane risk is a... - Answer ✔️✔️-subjective risk Risk can be classified as subjective or objective. Which one of the following statements is correct with respect to these risk classifications? - Answer ✔️✔️-subjective risk can exist even where objective risk does not Asking a question such as "How do you think this will work out?" can help a speaker do which of the following? - Answer ✔️✔️-request feedback and determine if the message has been understood Which one of the following is an internal source that can often p rovide information regarding risks that aren't obvious? - Answer ✔️✔️-internal auditing (the internal audit function can often provide information regarding risk that aren't obvious, such as employees creating a risk by not adhering to certain processes) The fundamental purpose of a risk management framework is to... - Answer ✔️✔️-integrate risk management throughout the organization In an effort to grow personal lines book, an insurer decides to offer discounts on homeowners and personal auto insurance t o the employees of its largest business lines account. Which one of the following risk measures is most likely to increase as a result of this marketing decision? - Answer ✔️✔️-Correlation (think law of large numbers) Which one of the following statements is true regarding the basic measures that apply to risk management? - Answer ✔️✔️-consequences measure the degree to which an occurrence could positively or negatively affect an organization The traditional definition of risk management reflects the tradi tional concept of risk as ___________ - Answer ✔️✔️-negative Sets of data that are too large to be gathered and analyzed by traditional methods - Answer ✔️✔️-
big data An innovative item that uses sensors; wireless sensor networks; and data collection, transmission, and analysis to further enable the item to be faster more useful, or otherwise improved. - Answer ✔️✔️-smart product A network of objects that transmit data to and from each other without human interaction. - Answer ✔️✔️-internet of things Inform ation, technology, and storage services contractually provided from remote locations, through the internet or another network, without a direct server connection. - Answer ✔️✔️-cloud computing
big data An innovative item that uses sensors; wireless sensor networks; and data collection, transmission, and analysis to further enable the item to be faster more useful, or otherwise improved. - Answer ✔️✔️-smart product A network of objects that transmit data to and from each other without human interaction. - Answer ✔️✔️-internet of things Inform ation, technology, and storage services contractually provided from remote locations, through the internet or another network, without a direct server connection. - Answer ✔️✔️-cloud computing
