{"id":130406,"date":"2023-12-14T05:46:12","date_gmt":"2023-12-14T05:46:12","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=130406"},"modified":"2023-12-14T05:47:10","modified_gmt":"2023-12-14T05:47:10","slug":"arm-400-risk-in-an-evolving-world-exam-questions-and-verified-answers-100-correct-grade-a-latest-2023-2024-update","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2023\/12\/14\/arm-400-risk-in-an-evolving-world-exam-questions-and-verified-answers-100-correct-grade-a-latest-2023-2024-update\/","title":{"rendered":"ARM 400: Risk in an Evolving World Exam | Questions and Verified Answers| 100% Correct| Grade A (Latest 2023\/ 2024 Update)"},"content":{"rendered":"\n

ARM 400: Risk in an Evolving World Exam | Questions and Verified Answers| 100% Correct| Grade A (Latest 2023\/ 2024 Update)<\/h1><\/p>\n\n\n\n

ARM 400: Risk in an Evolving World Exam |
Questions and Verified Answers| 100%
Correct| Grade A (Latest 2023\/ 2024 Update)
Q: 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.
Answer:
B. Preventive analytics.
Q: 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.
Answer:
B. Artificial intelligence.
Q: 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,<\/p>\n\n\n\n

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
Answer:
C. Preventative analytics
Q: 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
Answer:
C. Stockholders
Q: 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
A. Responsive.
B. Directive.
C. Delegating.
D. Supportive.
Answer:
B. Directive.<\/p>\n\n\n\n

Q: Lucy is a chef at a restaurant. She is growing tired of working such long hours and not
reaping the financial benefits. Lucy has been saving money with the goal of opening her own
restaurant. She recently talked to a financial advisor about the options market as a way to grow
her savings quickly. The financial advisor explained that it is a risky choice, but could potentially
allow her to reach her goal of owning a restaurant in the near future. Lucy has decided to invest
her savings in the options market. Which one of the following types of risk attitude does Lucy
exhibit?
A. Risk obsessed
B. Risk managed
C. Risk optimizing
D. Risk seeking
Answer:
D. Risk seeking
Q: Which one of the following statements is correct regarding an organization’s code of ethics?
A. The code of ethics should primarily consider the social and ethical needs of its external
stakeholders.
B. The code of ethics should include principles and concepts that are dynamic enough to remain
relevant in a rapidly changing business environment.
C. The code of ethics should provide an organization with a set of parameters within which it
should operate, with little room for interpretation.
D. The code of ethics should provide a list of dos and don’ts that employees can use as a
framework in making day-to-day decisions.
Answer:
B. The code of ethics should include principles and concepts that are dynamic enough to remain
relevant in a rapidly changing business environment.
Q: Which one of the following is an example of an internal key risk indicator (KRI) that a
contractor might monitor?
A. Availability of skilled labor
B. Cost of lumber
C. Budget variances
D. Interest rates
Answer:
C. Budget variances<\/p>\n\n\n\n

Q: An organization’s goals and objectives are met by establishing and attaining measurable
standards for the many activities it pursues. Which one of the following statements is correct
with respect to those standards?
A. A key performance indicator (KPI) answers the question, “What will make our organization a
success?”
B. Organizations with key performance indicators (KPIs) established for critical success factors
(CSFs) will typically achieve organizational goals.
C. For each key performance indicator (KPI), there is a tolerance level for how much deviation
from the standard established in the KPI will be acceptable.
D. Generally, an organization’s risk tolerance has little impact on its critical success factors
(CSFs) and key performance indicators (KPIs).
Answer:
C. For each key performance indicator (KPI), there is a tolerance level for how much deviation
from the standard established in the KPI will be acceptable.
Q: The service representatives for Tauton Insurance will be eligible for a bonus only if the
customer retention rate is increased by 5%. This is an example of which one of the following
standards?
A. A key performance indicator based on financial ratios
B. A corrective measure linked with an identified tolerance level
C. A severe risk tolerance level
D. A critical success factor derived from a strategic objective
Answer:
B. A corrective measure linked with an identified tolerance level
Q: Which one of the following terms refers to information used as a basis for measuring the
significance of a risk?
A. Risk appetite
B. Risk threshold
C. Risk criteria
D. Risk tolerance
Answer:
Powered by https:\/\/learnexams.com\/search\/study?query=<\/a><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"

ARM 400: Risk in an Evolving World Exam | Questions and Verified Answers| 100% Correct| Grade A (Latest 2023\/ 2024 Update) ARM 400: Risk in an Evolving World Exam |Questions and Verified Answers| 100%Correct| Grade A (Latest 2023\/ 2024 Update)Q: AMRM Insurance Company sells insurance in Virginia, North Carolina, South Carolina, andGeorgia. The company has […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-130406","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/130406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=130406"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/130406\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=130406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=130406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=130406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}