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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
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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
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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).
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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%