ARM ARM Strategic Risk Management 2

Question 1

Which of the following is the BEST example of a strategic risk facing a technology company?

Accepted Answer

Rapid technological disruption rendering core products obsolete

Answer

Technological disruption that renders core products obsolete directly threatens a technology company's strategic viability and long-term survival.

Question 2

Scenario analysis in strategic risk management is used primarily to:

Accepted Answer

Examine potential future conditions and their impact on organizational strategy

Answer

Scenario analysis evaluates how different plausible futures might affect strategic objectives and helps organizations prepare for uncertainty.

Question 3

The Board of Directors' primary role in strategic risk management is to:

Accepted Answer

Provide oversight and ensure risk management aligns with organizational strategy

Answer

The Board provides governance-level oversight, setting the strategic direction for risk management and ensuring it supports organizational objectives.

Question 4

'Risk culture' within an organization is most accurately described as:

Accepted Answer

The shared values, beliefs, and behaviors that shape how risk is managed

Answer

Risk culture encompasses the collective attitudes and behaviors toward risk-taking and management that permeate an organization.

Question 5

Which of the following BEST describes 'emerging risks' in strategic risk management?

Accepted Answer

Newly developing or evolving risks that are difficult to assess

Answer

Emerging risks are new or changing risks that lack historical data, making them challenging to quantify and manage proactively.

ARM - Associate in Risk Management Practice Test

ARM - Associate in Risk Management Practice Test

ARM ARM Strategic Risk Management 2