A.R.M 400 PRACTICE EXAM WITH CORRECT QUESTIONS AND ANSWERS

A.R.M 400 PRACTICE EXAM WITH CORRECT QUESTIONS AND ANSWERS

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 - 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 - 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 - 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 - 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 - 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 - 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 - 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. - A
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 - D
Which of the following risk management program goals is an essential goal for all public entities?
A. Earning stability
B. Continuity of operations
C. Growth
D. Survival - B
The traditional definition of risk management reflects the traditional concept of risk as
A. Both positive and negative.
B. Negative.
C. Uncontrollable.
D. Strategic. - 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 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?
A. The two new tr - 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 of correlation.
C. Risk increases as volatility decreases.
D. Longer time horizons are generally less risky that shorter ones. - A
Which one of the following provides a measure of the maximum potential damage associated with
an occurrence?
A. Exposure
B. Duration
C. Underwriting risk
D. Maximum probable loss - A
Samuel was recently hired as a risk management professional for Parker 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 any
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 - 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. - A