ARM 400 EXAM NEWEST ACTUAL
EXAM 2024-2025 QUESTIONS AND
CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) | ALREADY
GRADED A+
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). Correct 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
D. A critical success factor derived from a strategic
objective Correct 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 Correct 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.
Correct 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).
D. An objective gauge (OG). Correct 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. Correct 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%
, D. Employee injury rate remains unchanged Correct
Answer C. Reduce employee injuries by 5 to 6%
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 severe risk tolerance level
B. A critical success factor derived from a strategic
objective
C. A key performance indicator based on financial ratios
D. A corrective measure linked with an identified tolerance
level Correct Answer D. A corrective measure linked with
an identified tolerance level
Which one of the following statements is true regarding
the business process management (BPM) life cycle
model?
A. The model is designed to review one business process
at a time.
B. The model is ineffective unless all five steps are
completed on a continuous basis.
C. The model is primarily used by organizations in the
manufacturing sector.
D. The model is driven by the collaboration of human and
technological input. Correct Answer D. The model is
driven by the collaboration of human and technological
input.
Which one of the following is an example of an internal
key risk indicator (KRI) that a contractor might monitor?
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