ARM 400: Risk in an Evolving World Exam Review |Questions and Verified Answers| 100% Correct| Grade A (Latest 2023/ 2024 Update)

ARM 400: Risk in an Evolving World Exam

Review |Questions and Verified Answers|

100% Correct| Grade A (Latest 2023/ 2024

Update)

Q: Risk can be classified as subjective or objective. Which one of the following statements is

correct with respect to these risk classifications?

Answer:

subjective risk can exist even where objective risk does not

Q: Asking a question such as "How do you think this will work out?" can help a speaker do

which of the following?

Answer:

request feedback and determine if the message has been understood

Q: Which one of the following is an internal source that can often provide information

regarding risks that aren't obvious?

Answer:

internal auditing

(the internal audit function can often provide information regarding risk that aren't obvious, such

as employees creating a risk by not adhering to certain processes)

Q: The fundamental purpose of a risk management framework is to...

Answer:

integrate risk management throughout the organization

Q: In an effort to grow personal lines book, an insurer decides to offer discounts on

homeowners and personal auto insurance to the employees of its largest business lines account.

Which one of the following risk measures is most likely to increase as a result of this marketing

decision?

Answer:

Correlation

(think law of large numbers)

Q: Which one of the following statements is true regarding the basic measures that apply to risk

management?

Answer:

consequences measure the degree to which an occurrence could positively or negatively affect an

organization

Q: The traditional definition of risk management reflects the traditional concept of risk as

___________

Answer:

negative

Q: Sets of data that are too large to be gathered and analyzed by traditional methods

Answer:

big data

Q: An innovative item that uses sensors; wireless sensor networks; and data collection,

transmission, and analysis to further enable the item to be faster more useful, or otherwise

improved.

Answer:

smart product

Q: A network of objects that transmit data to and from each other without human interaction.

Answer:

internet of things

Q: Information, technology, and storage services contractually provided from remote locations,

through the internet or another network, without a direct server connection.

Answer:

cloud computing

Q: A distributed digital ledger that facilitates secure transactions without the need for a third

party.

Answer:

blockchain

Q: The use of technological devices in vehicles with wireless communication and GPS tracking

that transmit data to businesses or government agencies; some return information for the driver.

Answer:

Telematics

Q: Obtaining information through language recognition.