A.R.M. 400 EXAM PRACTICE QUESTIONS AND ANSWERS
Question 1: According to the law of large numbers, as the
number of exposure units insured increases,
CORRECT ANSWER: The relative accuracy of predictions
about future losses increases
Question 2: The fundamental purpose of a risk management
framework is to
CORRECT ANSWER: Integrate risk management
throughout the organization
Question 3: Which one of the following provides a measure
of the maximum potential damage associated with an
occurrence?
CORRECT ANSWER: Exposure
Question 4: Aligning risks with the organization's risk
appetite defines
CORRECT ANSWER: Tolerable uncertainty
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