ARM401 Exam Review: Questions With Solutions
Geneva Trucking installed telematics devices in all of its trucks. The sensors in
two trucks indicate a frequency of hard braking. Which one of the following
types of indicator does this information provide for Geneva Trucking?
Right Ans - Leading indicator
Shawn, a stock analyst, is analyzing a company. The book value of the
company's assets is $780 million, and the book value of company's liabilities is
$440 million. Shawn believes the market value of the company's assets is
$860 million, the market value of the liabilities is $420 million, and the
company's economic capital is $400 million. Based on this information, the
company's excess capital is Right Ans - $40 million
Market value surplus is $440 million and economic capital is $400 million, so
the excess capital is $40 million.
Which one of the following is a legal and regulatory concern when personal
information is obtained from public sources? Right Ans - privacy
Which one of the following statements best describes the shareholders' equity
section of the balance sheet? Right Ans - Shareholders' equity is negative
when liabilities exceed assets.
A risk manager and safety engineer need to consider which one of the
following interdependent elements when evaluating the premises condition?
Right Ans - Construction, occupancy, protection, and external exposures
In order to be useful, data should be Right Ans - Structured or unstructured
Fatima is the risk professional for Courtland Incorporated. She is evaluating
several emerging risks to the organization. This requires her to collaborate
with external subject-matter experts and internal subject-matter experts.
Which one of the following internal experts would likely be most concerned
with the information Fatima received from an external climate change expert?
Right Ans - Facilities manager
When using fault tree analysis (FTA), an "or" gate indicates which one of the
following? Right Ans - That any one of the events leading to the gate is
sufficient to cause that event to occur
, Moving rapidly to detect and evaluate damage and to counter its continuation
or spread by giving first aid or protecting property in imminent danger of fire
is a basic strategy of the Right Ans - Energy transfer theory.
Sebastian Snax is a manufacturer of organic snack foods. The products are
distributed to grocery stores by a contract carrier. On March 31, Sebastian
learns that the drivers for the contract carrier may go on strike at midnight.
The contract carrier does not have a back-up plan, and Sebastian is now
searching for an alternative way to deliver its products. How could
management at Sebastian have better prepared for this potential disruption?
Right Ans - Through an improved relationship and communication with the
contract carrier
the past year. The table below shows how often the model correctly and
incorrectly predict for each employee "yes, will have an accident" or "no, will
not have an accident."
Predicted No+Predicted Yes=Total (1,000 Employees)
Actual No 945 5 950 Actual Yes 10 40 50
Based on the preceding number, these statements can be made:
- There are 40 true positives (TP) for which the model correctly predicted yes.
- There are 945 true negatives (TN) for which the model correctly predicted
no.
- There are 5 false positives (FP) for which the model incorrectly predicted
yes (and the actual answer is no).
- There are 10 false negatives (FN) for which the model incorrectly predicted
no (and the actual answer is yes).
What is the precision of the workplace injury predictive model? Right Ans -
.889
40 ÷ (40 + 5) = .889
What is the name given to a claim by an employee who says that he or she was
fired because of the filing of a workers compensation claim? Right Ans -
Retaliation claim
The risk that the value of an investment or a portfolio of assets will increase or
decrease in value due to the supply and demand for that investment is called
Right Ans - market risk
Geneva Trucking installed telematics devices in all of its trucks. The sensors in
two trucks indicate a frequency of hard braking. Which one of the following
types of indicator does this information provide for Geneva Trucking?
Right Ans - Leading indicator
Shawn, a stock analyst, is analyzing a company. The book value of the
company's assets is $780 million, and the book value of company's liabilities is
$440 million. Shawn believes the market value of the company's assets is
$860 million, the market value of the liabilities is $420 million, and the
company's economic capital is $400 million. Based on this information, the
company's excess capital is Right Ans - $40 million
Market value surplus is $440 million and economic capital is $400 million, so
the excess capital is $40 million.
Which one of the following is a legal and regulatory concern when personal
information is obtained from public sources? Right Ans - privacy
Which one of the following statements best describes the shareholders' equity
section of the balance sheet? Right Ans - Shareholders' equity is negative
when liabilities exceed assets.
A risk manager and safety engineer need to consider which one of the
following interdependent elements when evaluating the premises condition?
Right Ans - Construction, occupancy, protection, and external exposures
In order to be useful, data should be Right Ans - Structured or unstructured
Fatima is the risk professional for Courtland Incorporated. She is evaluating
several emerging risks to the organization. This requires her to collaborate
with external subject-matter experts and internal subject-matter experts.
Which one of the following internal experts would likely be most concerned
with the information Fatima received from an external climate change expert?
Right Ans - Facilities manager
When using fault tree analysis (FTA), an "or" gate indicates which one of the
following? Right Ans - That any one of the events leading to the gate is
sufficient to cause that event to occur
, Moving rapidly to detect and evaluate damage and to counter its continuation
or spread by giving first aid or protecting property in imminent danger of fire
is a basic strategy of the Right Ans - Energy transfer theory.
Sebastian Snax is a manufacturer of organic snack foods. The products are
distributed to grocery stores by a contract carrier. On March 31, Sebastian
learns that the drivers for the contract carrier may go on strike at midnight.
The contract carrier does not have a back-up plan, and Sebastian is now
searching for an alternative way to deliver its products. How could
management at Sebastian have better prepared for this potential disruption?
Right Ans - Through an improved relationship and communication with the
contract carrier
the past year. The table below shows how often the model correctly and
incorrectly predict for each employee "yes, will have an accident" or "no, will
not have an accident."
Predicted No+Predicted Yes=Total (1,000 Employees)
Actual No 945 5 950 Actual Yes 10 40 50
Based on the preceding number, these statements can be made:
- There are 40 true positives (TP) for which the model correctly predicted yes.
- There are 945 true negatives (TN) for which the model correctly predicted
no.
- There are 5 false positives (FP) for which the model incorrectly predicted
yes (and the actual answer is no).
- There are 10 false negatives (FN) for which the model incorrectly predicted
no (and the actual answer is yes).
What is the precision of the workplace injury predictive model? Right Ans -
.889
40 ÷ (40 + 5) = .889
What is the name given to a claim by an employee who says that he or she was
fired because of the filing of a workers compensation claim? Right Ans -
Retaliation claim
The risk that the value of an investment or a portfolio of assets will increase or
decrease in value due to the supply and demand for that investment is called
Right Ans - market risk
