A.r.m. 400 Exam Practice Correct 100%

Which one of the following statements is true regarding the basic measures that apply to risk management? A. Consequences measure the degree to which an occurrence could positively or negatively affect an organization. B. Hedging is a risk management strategy that can reduce the risk of correlation. C. Risk increases as volatility decreases. D. Longer time horizons are generally less risky that shorter ones. {Ans: A}Which one of the following describes the role of internal audit according to the Federation of European Risk Management Associations (FERMA) and the European Commission of Institutes of Internal Audit (ECIIA) model? A. Internal audit is the first line of defense providing the original risk assessment, control environment as well as maintaining effective internal controls. B. Internal audit is the second line of defense providing support for the implementation of controls, particularly with law a {Ans: C}Which one of the following statements about the use of drones is true? A. The use of drones is limited to military applications. B. Space and weight limitations prevent drones from being equipped with sensors and cameras. C. Drones may be equipped with cameras that relay data in real-time. D. The reliance on humans to operate drones