Exam (elaborations)
ARM 400, questions and answers verified 2024
- Course
- Institution
ARM 400, questions and answers verified 2024
[Show more]
Content preview
ARM 400Encouraging 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
A. Cultivate two-way communication.
B. Facilitate active listening.
C. Support diverse groups.
D. Maintain control of the conversation. - correct answer ✔A. Cultivate two-
way communication.
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. Analyze your audience
B. Set aside judgement
C. Set a clear communication objective
D. Deliver a message the recipient(s) want to hear - correct answer ✔C. Set
a clear communication objective
According to the law of large numbers, as the number of exposure units
insured increases,
A. The size of the average loss declines.
B. The relative accuracy of predictions about future losses increases.
C. The probability of an underwriting loss increases.
D. Fewer losses are expected to occur. - correct answer ✔B. The relative
accuracy of predictions about future losses increases.
,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. Define the organization's risk appetite
B. Stay focused on the organization's objectives
C. Enhance stakeholders' confidence in the process
D. Seek feedback from stakeholders - correct answer ✔C. Enhance
stakeholders' confidence in the process
Company G is a manufacturer of high profile golf equipment. The risk
management professional for Company G is concerned about loss of
business related to product design. Failing to respond to changing customer
demand and preferences in the design of golf clubs could cost Company G
significant market share. Categorized according to the quadrants of risk, this
exposure to loss is classified as
A. An operational risk.
B. A strategic risk.
C. A financial risk.
D. A hazard risk. - correct answer ✔B. A strategic risk.
Which one of the following risk management objectives is critical for a
manufacturer seeking new capital from investors, stockholders, and creditors?
A. Social responsibility
B. Anticipate and recognize emerging risks
C. Eliminate downside risk
D. Reduce the deterrent effects of hazard risks - correct answer ✔D. Reduce
the deterrent effects of hazard risks
In addition to metal detectors, many airports have installed a second type of
scanning technology for checked baggage and cargo. The checked bags and
,cargo pass through a portal with scanners programmed to detect and test for
explosive trace fumes. These scanners, which detect explosives based on air
samples, are an example of what type of sensor used for risk assessment and
control?
A. Radiant sensors.
B. Mechanical sensors.
C. Biochemical sensors.
D. Thermal sensors. - correct answer ✔C. Biochemical sensors.
AMRM Insurance Company sells insurance in Virginia, North Carolina, South
Carolina, and Georgia. The company has compiled a policyowner data base
that can be used to send text messages when hurricanes approach. The
company provides early warnings, storm updates from the National Weather
Service, and hurricane safety measures. The company credits the system with
reduced hurricane claims. The use of the texting system is an example of
A. Artificial intelligence.
B. Preventive analytics.
C. Experience rating.
D. Sensor networks. - correct answer ✔B. Preventive analytics.
Mutual Fund Company (MFC) offers a wide array of mutual fund options to
investors. Each mutual fund has a different fund objective and set of
investment guidelines that apply to the fund. While MFC gives considerable
freedom to its fund portfolio managers, they are required to abide by the
fund's investment guidelines. To monitor compliance, MFC developed a
computer algorithm. The computer algorithm continuously monitors each
fund's compliance with investment guidelines. If a fund manager violates the
investment guidelines, the computer immediately notifies MFC's internal
control director, and corrective action is taken. MFC's use of the computer
algorithm to monitor investment compliance and to provide notification when
corrective action is necessary illustrates use of
A. Computer vision.
, B. Artificial intelligence.
C. Transducer technology.
D. Mechanical sensors. - correct answer ✔B. Artificial intelligence.
Southwest Interstate Railroad (SIR) is concerned about the number
derailments in recent years. It's not cost effective to use human assets to
inspect tracks, bridges, and trestles. Instead, SIR has started to use drones. A
drone can fly low over tracks and above/below bridges and trestles. The
drones record video that is transmitted to corporate headquarters where it is
simultaneously scanned for derailment hazards. In the past six months, the
drones detected a track blockage caused by a rock slide and damage to
tracks in a remote area cause by an earthquake. SIR dispatched work crews
to make the tracks once again passable, and no derailments occurred. SIR's
use of drones, video, real-term video scanning, and computer analysis
illustrates which one of the following?
A. Risk management information systems
B. Insurtech
C. Preventative analytics
D. Big data analytics - correct answer ✔C. Preventative analytics
A risk management professional is identifying the organization's key
stakeholders as part of the enterprise risk management program. Which one
of the following would be considered an internal stakeholder?
A. Unions
B. General public
C. Stockholders
D. Suppliers - correct answer ✔C. Stockholders
Parker International tends to communicate only the information that
stakeholders need to complete their tasks and achieve goals. The
management style at Parker International is
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 LEWISSHAWN55. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79751 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now