Practice Test GeeksARM - Associate in Risk Management Practice Test

ARM Study Guide 2026

Everything you need to pass the ARM exam in one place: the exam format, every topic to study, real practice questions with explanations, flashcards, and full-length practice tests. Free, no sign-up needed.

📋 ARM Exam Format at a Glance

50
Questions
65 min
Time Limit
70.00%
Passing Score
Take a Full ARM Exam Simulation →

📚 ARM Topics to Study (57)

Cyber and Data Security Risk · 7 cardsCyber and Data Security Risk · 7 cardsCyber and Data Security Risk · 7 cardsCyber and Data Security Risk · 7 cardsEnterprise Risk Management (ERM) · 7 cardsEnterprise Risk Management (ERM) · 7 cardsEnterprise Risk Management (ERM) · 7 cardsEnterprise Risk Management (ERM) · 7 cardsFinancial Risk Management · 7 cardsFinancial Risk Management · 7 cardsFinancial Risk Management · 7 cardsRisk Assessment and Analysis · 7 cardsRisk Assessment and Analysis · 7 cardsRisk Assessment and Analysis · 7 cardsRisk Assessment and Analysis · 7 cardsRisk Control and Mitigation Strategies · 7 cardsRisk Control and Mitigation Strategies · 7 cardsRisk Control and Mitigation Strategies · 7 cardsRisk Control and Mitigation Strategies · 7 cardsRisk Financing and Insurance · 7 cardsRisk Financing and Insurance · 7 cardsRisk Financing and Insurance · 7 cardsRisk Financing and Insurance · 7 cardsRisk Financing and Transfer · 7 cardsRisk Financing and Transfer · 7 cardsRisk Financing and Transfer · 7 cardsRisk Financing and Transfer · 7 cardsRisk Identification and Analysis · 7 cardsRisk Identification and Analysis · 7 cardsRisk Identification and Analysis · 7 cards
See all 57 topics as flashcards →

✍️ Sample ARM Questions & Answers

1. A firm reports a one-day 95% Value at Risk (VaR) of $2 million. What does this mean?
✓ On 95% of days, losses should not exceed $2 million

VaR estimates the loss threshold that should not be exceeded at a given confidence level over a set horizon; it does not measure the worst case.

2. Which statement about risk according to ISO 31000 is correct?
✓ Risk is the effect of uncertainty on objectives and can be positive or negative

ISO 31000 defines risk as the effect of uncertainty on objectives, with effects that may be positive, negative, or both.

3. Which of the following is NOT one of the four elements of a loss exposure analysis framework used in ARM?
✓ The insurer's combined ratio

A loss exposure is described by the asset exposed, the cause of loss, the financial consequences, and the entity affected, not by an insurer's financial ratio.

4. Which situation is BEST suited to a normal probability distribution?
✓ Many independent, similar events producing symmetric outcomes

The normal distribution fits symmetric outcomes from many independent factors, unlike skewed severity data.

5. Which feature most distinguishes finite risk insurance from traditional insurance?
✓ It transfers a limited amount of risk, and premiums are a large share of the coverage limit

Finite risk plans transfer limited risk, and the insured often shares in favorable results because premiums nearly fund the limits.

6. When two or more loss exposures are likely to be affected by the same event, they are said to be:
✓ Correlated

Correlated exposures tend to move together, increasing the potential for a single event to cause aggregated losses.

🎯 Free ARM Practice Tests

Cyber and Data Security Risk · 7 questionsCyber and Data Security Risk · 7 questionsCyber and Data Security Risk · 7 questionsEnterprise Risk Management (ERM) · 7 questionsEnterprise Risk Management (ERM) · 7 questionsEnterprise Risk Management (ERM) · 7 questionsEnterprise Risk Management (ERM) · 7 questionsRisk Financing and Transfer · 7 questionsRisk Financing and Transfer · 7 questionsCyber and Data Security Risk · 7 questions

📖 ARM Guides & Articles

Your ARM Study Path
1. Learn with Flashcards → 2. Drill Practice Tests → 3. Take the Full Exam Simulation
🃏 ARM Flashcards (381)🏆 ARM Exam Simulation

What Practice Test Geeks adds beyond an AI chat for ARM

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  • A timed, full-length ARM mock exam — 50 questions in 65 minutes with a 70% pass mark, modeled on the official exam's question count and time limit, followed by a score report broken down by exam domain.
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  • Progress saved on your device: completed tests, scores and missed questions stay in My Progress, so you can retake only what you got wrong.
  • A printable ARM cheat sheet you can print or save as a PDF.
  • ARM flashcards built from the same question bank.
  • Free ARM practice tests with the correct answer shown after each question.
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