ARM 400 EXAM AND PRACTICE EXAM NEWEST ACTUAL EXAM COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+

1 | P a g e ARM 400 EXAM AND PRACTICE EXAM NEWEST 2024- 2025 ACTUAL EXAM COMPLETE 300 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED ANSWERS) |ALREADY GRADED A+ 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. 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 2 | P a g e C. Budget variances D. Interest rates - ANSWER- C. Budget variances 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. 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 3 | P a g e D. A critical success factor derived from a strategic objective - ANSWER- B. A corrective measure linked with an identified tolerance level 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- C. Risk criteria Which one of the following is a main characteristic of effective key risk indicators (KRIs)? A. They define the boundaries of risk tolerance. B. They are lagging in nature. C. They are based on quantifiable information. D. They measure progress toward achieving objectives. - ANSWER- C. They are based on quantifiable information. Successful organizations have goals and objectives. A financial or nonfinancial measurement that defines how successfully an organization is progressing toward its long-term goals is referred to as A. An operating standard (OS). B. A key performance indicator (KPI). C. A critical success factor (CSF). 4 | P a g e D. An objective gauge (OG). - ANSWER- B. A key performance indicator (KPI). 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. Organizations with key performance indicators (KPIs) established for critical success factors (CSFs) will typically achieve organizational goals. B. A key performance indicator (KPI) answers the question, "What will make our organization a success?" C. Generally, an organization's risk tolerance has little impact on its critical success factors (CSFs) and key performance indicators (KPIs). D. 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. - ANSWER- D. 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. An organization has established a key performance indicator to "reduce employee injuries by 6%." Which one of the following would indicate a low risk tolerance for this KPI? A. Reduce employee injuries by 2% B. Reduce employee injuries by 4% C. Reduce employee injuries by 5 to 6%