ARM Strategic Risk Management Flashcards
6 cards from real ARM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 ARM Strategic Risk Management flashcards as text
Which of the following is the BEST example of a strategic risk facing a technology company?
Answer: Rapid technological disruption rendering core products obsolete
Technological disruption that renders core products obsolete directly threatens a technology company's strategic viability and long-term survival.
Scenario analysis in strategic risk management is used primarily to:
Answer: Examine potential future conditions and their impact on organizational strategy
Scenario analysis evaluates how different plausible futures might affect strategic objectives and helps organizations prepare for uncertainty.
The Board of Directors' primary role in strategic risk management is to:
Answer: Provide oversight and ensure risk management aligns with organizational strategy
The Board provides governance-level oversight, setting the strategic direction for risk management and ensuring it supports organizational objectives.
'Risk culture' within an organization is most accurately described as:
Answer: The shared values, beliefs, and behaviors that shape how risk is managed
Risk culture encompasses the collective attitudes and behaviors toward risk-taking and management that permeate an organization.
Which of the following BEST describes 'emerging risks' in strategic risk management?
Answer: Newly developing or evolving risks that are difficult to assess
Emerging risks are new or changing risks that lack historical data, making them challenging to quantify and manage proactively.
Key Risk Indicators (KRIs) in strategic risk management are primarily used to:
Answer: Provide early warning signals of increasing risk exposure
KRIs are metrics that signal when risk levels are approaching unacceptable thresholds, enabling proactive management response.