Exam (elaborations)
A.R.M. 400 Exam test bank correctly answered 2023
- Course
- Institution
A.R.M. 400 Exam test bank correctly answered 2023
[Show more]
Content preview
A . R.M. 400 Exam Practice Exam 2023 With Correct Answers…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 - Answer 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 - Answer 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. - Answer 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 trucks
B. The warehouse refurbishment
C. The software upgrade
D. The new production machine - Answer 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. - Answer 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 - Answer 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 the risks that the organization faces
C. Earn the confidence of the organization's board of directors
D. Become familiar with industry regulations - Answer 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. - Answer 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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. - 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. - 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. - 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. - 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 - 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.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller PhysioTherapist. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $25.19. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53340 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now