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ARM 401 Exam Questions with CORRECT ANSWERs
Question : holistic approach to managing risk
CORRECT ANSWER: -broader in scope, managing all
areas of the business, not just hazard risks
-encompasses the analysis and predictability of business
processes and organizational decisions
-mandates the collaboration of internal and external
stakeholders to identify, assess, and treat risks
-involves looking at what might be gained from decisions or
actions
-can uncover inconsistencies in how a company managers
loss retention
-can help orgs better absorb losses
Question : strategic risk
CORRECT ANSWER: -uncertainties associated with the
organization's long-term goals and management decisions
-may carry a greater risk dynamic, positive or negative, that
the other categories
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