ARM 401 Exam – Questions & Solutions (Expert
Verified)
HAZOP Process Steps Right Ans - 1. Divide project/system into small
components
2. Review components to identify risk
3. Identify cause and potential outcomes of risks
4. Develop solutions to risks
5. Ensure solutions work and reevaluate
SWOT analysis (strengths, weaknesses, opportunities, threats) Right Ans -
A SWOT analysis is useful when there is a specific goal, such as determining
whether engaging in a new product or project is feasible. It's less useful for
analyzing current processes and procedures to identify risks unless there is a
specific objective, such as whether a procedure conforms to new regulations
or customer specifications. A goal is necessary to keep the SWOT analysis
from becoming too general or failing to provide actionable information.
Generally "go" or "no go"
Risk Threshold Right Ans - The range or amount of risk that is acceptable
Radio Frequency Identification (RFID) Right Ans - A technology that uses
radio frequency to identify objects
Artificial Intelligence Right Ans - Computer processing or output that
simulates human reasoning or knowledge
Computer Vision Right Ans - A technology that simulates human vision
Risk registers should always do these 4 things: Right Ans - Identifies the
organization's risks appropriately
Prioritizes risks according to their potential effects on the organization
Allows for collaboration and instant updating by risk managers and
stakeholders
Tracks improvement actions to take, when they're taken, and when a follow-
up or review will occur
,Risk Register Right Ans - A tool developed at the risk owner level that links
specific activities, processes, projects, or plans to a list of identified risks and
results of risk analysis and evaluation and that is ultimately consolidated at
the enterprise level
Risk Map vs Risk Register Right Ans - An organization would use a risk
register to identify, describe, and prioritize the risks of either a specific
circumstance (such as a process, project, or risk event) or the organization as
a whole. It's essentially a ledger to document risks and all information related
to them. A risk map, on the other hand, is developed after a risk register and
incorporates information from the register. A risk map provides a visual
representation of a risk register's data to show which risks are the highest
priority for risk managers and owners.
Relationship between inherent, residual, and optimuml risk Right Ans - if
the difference between the inherent risk and what the residual risk will be
after a treatment is applied is small, either the risk doesn't need to be treated
or the treatment itself isn't effective enough. The difference between the
residual risk and optimum risk represents how much further a risk can be
reduced
Risk Map Right Ans - A template depicting the likelihood and potential
impact/consequences of risks
Inherent Risk Right Ans - The level of risk that would be faced if it were to
remain untreated or no action were to be taken to alter the level of risk
Residual Risk Right Ans - The level of risk remaining after actions are taken
to alter the level of risk
Optimum Risk Right Ans - The level of risk that is within an organization's
risk appetite
Coordination Right Ans - the act of improving efficiency and reducing
redundancy by some combination of arranging, assigning, organizing, or
scheduling activities
, Collaboration vs. Cooperation Right Ans - Collaboration is the act of
working together to achieve a shared objective. Cooperation is the act of
working together to achieve individual objectives instead of a shared objective
Predictive techniques, such as decision tree analysis and event tree analysis:
Right Ans - assign numerical values to various components related to a risk
and combine them to produce a probability estimate
Risk Control Right Ans - A conscious act or decision not to act that reduces
the frequency and/or severity of losses or makes losses more predictable
Three categories of accident causes: Right Ans - poor management, safety
policy, and personal or environmental factors
Sequence of Events (Domino Theory) Right Ans - The sequence of events
theory proposes that these five accident factors can form a chain of events
that, like dominos, lead in succession to the resulting accident and injury:
1. Ancestry and social environment, such as inherited psychological disorders
and dysfunctional social environments
2. Fault of person, such as impulsiveness, violent temper, nervousness, or a
refusal to adapt to safe practices
3. An unsafe act and/or a mechanical or physical hazard, such as improper use
of machines or equipment, or poor maintenance of surroundings, such as
slippery floors or faulty railings
4. The accident itself
5. The resulting injury
Because each of the earlier links of the domino theory leads directly to the
next, removing any of the four factors that occur before the injury should, in
theory, prevent the resulting injury from occurring. Removal of the third
domino, the unsafe act and/or mechanical or physical hazard, is usually the
best way to break the accident sequence and prevent injury or illness; most
applicable to situations within human control; well-suited to accidents caused
by human carelessness
TOR establishes five basic principles of risk control: Right Ans - An unsafe
act, an unsafe condition, and an accident are all symptoms of something
wrong in the management system.
Certain circumstances, unless identified and controlled, may produce severe
injuries.
Verified)
HAZOP Process Steps Right Ans - 1. Divide project/system into small
components
2. Review components to identify risk
3. Identify cause and potential outcomes of risks
4. Develop solutions to risks
5. Ensure solutions work and reevaluate
SWOT analysis (strengths, weaknesses, opportunities, threats) Right Ans -
A SWOT analysis is useful when there is a specific goal, such as determining
whether engaging in a new product or project is feasible. It's less useful for
analyzing current processes and procedures to identify risks unless there is a
specific objective, such as whether a procedure conforms to new regulations
or customer specifications. A goal is necessary to keep the SWOT analysis
from becoming too general or failing to provide actionable information.
Generally "go" or "no go"
Risk Threshold Right Ans - The range or amount of risk that is acceptable
Radio Frequency Identification (RFID) Right Ans - A technology that uses
radio frequency to identify objects
Artificial Intelligence Right Ans - Computer processing or output that
simulates human reasoning or knowledge
Computer Vision Right Ans - A technology that simulates human vision
Risk registers should always do these 4 things: Right Ans - Identifies the
organization's risks appropriately
Prioritizes risks according to their potential effects on the organization
Allows for collaboration and instant updating by risk managers and
stakeholders
Tracks improvement actions to take, when they're taken, and when a follow-
up or review will occur
,Risk Register Right Ans - A tool developed at the risk owner level that links
specific activities, processes, projects, or plans to a list of identified risks and
results of risk analysis and evaluation and that is ultimately consolidated at
the enterprise level
Risk Map vs Risk Register Right Ans - An organization would use a risk
register to identify, describe, and prioritize the risks of either a specific
circumstance (such as a process, project, or risk event) or the organization as
a whole. It's essentially a ledger to document risks and all information related
to them. A risk map, on the other hand, is developed after a risk register and
incorporates information from the register. A risk map provides a visual
representation of a risk register's data to show which risks are the highest
priority for risk managers and owners.
Relationship between inherent, residual, and optimuml risk Right Ans - if
the difference between the inherent risk and what the residual risk will be
after a treatment is applied is small, either the risk doesn't need to be treated
or the treatment itself isn't effective enough. The difference between the
residual risk and optimum risk represents how much further a risk can be
reduced
Risk Map Right Ans - A template depicting the likelihood and potential
impact/consequences of risks
Inherent Risk Right Ans - The level of risk that would be faced if it were to
remain untreated or no action were to be taken to alter the level of risk
Residual Risk Right Ans - The level of risk remaining after actions are taken
to alter the level of risk
Optimum Risk Right Ans - The level of risk that is within an organization's
risk appetite
Coordination Right Ans - the act of improving efficiency and reducing
redundancy by some combination of arranging, assigning, organizing, or
scheduling activities
, Collaboration vs. Cooperation Right Ans - Collaboration is the act of
working together to achieve a shared objective. Cooperation is the act of
working together to achieve individual objectives instead of a shared objective
Predictive techniques, such as decision tree analysis and event tree analysis:
Right Ans - assign numerical values to various components related to a risk
and combine them to produce a probability estimate
Risk Control Right Ans - A conscious act or decision not to act that reduces
the frequency and/or severity of losses or makes losses more predictable
Three categories of accident causes: Right Ans - poor management, safety
policy, and personal or environmental factors
Sequence of Events (Domino Theory) Right Ans - The sequence of events
theory proposes that these five accident factors can form a chain of events
that, like dominos, lead in succession to the resulting accident and injury:
1. Ancestry and social environment, such as inherited psychological disorders
and dysfunctional social environments
2. Fault of person, such as impulsiveness, violent temper, nervousness, or a
refusal to adapt to safe practices
3. An unsafe act and/or a mechanical or physical hazard, such as improper use
of machines or equipment, or poor maintenance of surroundings, such as
slippery floors or faulty railings
4. The accident itself
5. The resulting injury
Because each of the earlier links of the domino theory leads directly to the
next, removing any of the four factors that occur before the injury should, in
theory, prevent the resulting injury from occurring. Removal of the third
domino, the unsafe act and/or mechanical or physical hazard, is usually the
best way to break the accident sequence and prevent injury or illness; most
applicable to situations within human control; well-suited to accidents caused
by human carelessness
TOR establishes five basic principles of risk control: Right Ans - An unsafe
act, an unsafe condition, and an accident are all symptoms of something
wrong in the management system.
Certain circumstances, unless identified and controlled, may produce severe
injuries.
