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ARM 401 Exam – Questions & Answers (Guaranteed Pass!)
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ARM 401 Exam – Questions & Answers (Guaranteed Pass!)
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ARM 401 Exam – Questions & Answers (GuaranteedPass!)
This earthquake-resistant construction relies on the resilience of steel or
specially designed reinforced concrete to absorb energy, undergo
considerable distortion, and return to its original shape. Which one of the
following describes this type of design?
Select one:
A. Frame action design
B. Box action design
C. Masonry design
D. Modified earthquake design Right Ans - A. Frame action design
After meeting with an external expert on climate change, an organization's
risk professional will need to do all of the following, EXCEPT:
A. Communicate all of the potential risks cited by the external expert to the
board of directors
B. Assess the potential severity of the risks to the organization
C. Recommend a treatment technique for risks with severe potential
D. Identify those risks that are most likely to affect the organization Right
Ans - A. Communicate all of the potential risks cited by the external expert to
the board of directors
A risk map showing a large difference between inherent and residual risk
indicates which one of the following?
A. The risk does not need to be treated
B. The current risk treatment is ineffective
C. The current risk treatment is effective
D. The risk is within the organization's risk appetite Right Ans - C. The
current risk treatment is effective
Home Appliance Company has decided to change its production method.
Previously, small teams of workers assembled washers, dryers, and
dishwashers. Under the new production method, an assembly-line will be
used, with some functions performed by robotics. Before making the change,
Home Appliance Company has created a team of experts from company
personnel to identify all of the risks inherent in the new production method
,and to recommend measures to address these risks. The team will assemble in
a facilitated workshop and follow these steps:
1. Divide the production method into components
2. Review each component to identify risk
3. Identify causes and potential outcomes for each risk
4. Develop a solution for each risk.
This team approach is risk identification is called a
A. SWOT (strengths, weaknesses, opportunities, threats) analysis.
B. Hazard and operability (HAZOP) study.
C. Facilitated workshop.
D. Delphi techn Right Ans - B. Hazard and operability (HAZOP) study.
Risk maps differ from other risk assessment tools and techniques in which
one of the following ways?
A. Risk maps have the potential to identify both negative risks and
opportunity risks.
B. Risk maps dissect processes within the organization from input to output
for the purpose of improving them.
C. Risk maps are able to quickly explore a vast number of possible outcomes
based on large datasets.
D. Risk maps identify, prioritize, and quantify risks in a two-dimensional
pictorial that illustrates frequency and severity on vertical and horizontal
axes. Right Ans - D. Risk maps identify, prioritize, and quantify risks in a
two-dimensional pictorial that illustrates frequency and severity on vertical
and horizontal axes.
Which one of the following statements is true regarding the use of risk
registers with scenario models?
A. A risk register should record the likelihood of a scenario along with the
consequences of associated risks.
B. The risk manager should complete a risk register for each location of the
organization.
C. An interactive computer system should be used for risk registers so they
can be updated once a year.
D. The likelihood of a risk register's scenario should not vary significantly
among locations of the organization. Right Ans - A. A risk register should
record the likelihood of a scenario along with the consequences of associated
risks.
,William is a project manager for Parker International. He has been assigned a
key project with a short deadline. William realizes that this project is going to
require revising the job duties of some individuals and a collaborative effort
from of all team members. When revising job duties, William should do which
one of the following?
A. Focus on the individuals' personality rather than results
B. Overload some individuals with more work than others
C. Rely on the most senior individuals to take on additional duties
D. Try to enrich individuals' work rather than merely expand it Right Ans -
D. Try to enrich individuals' work rather than merely expand it
SoCal Movie Company produces movies at a studio in Southern California. The
risk manager decided to identify the range of potential consequences
associated with various risks that the company faces. For example, if a severe
earthquake occurred while the company was filming a movie, there could be
deaths and injuries, destruction of movie sets, delays in production, costs
associated with filming at an alternative location, and loss of reputation and
good will. The type of analysis performed by the risk manager is called
A. SWOT analysis.
B. HAZOP analysis.
C. Scenario analysis.
D. Sensitivity analysis. Right Ans - C. Scenario analysis.
Cotton Products Company manufactures cotton clothing, towels, sheets, and
other cotton products. All production takes place at one large multi-acre
production facility. The risk manager of Cotton Products Company called a
meeting attended by her staff, the plant foreman, the plant safety engineer,
and the head of operations. She told the group that she wanted to analyze one
problem-the top event-a catastrophic fire at the production facility. The group
discussed all the causes of failure and factors that could contribute to the top
event. The causes of the -top event- were listed, and methods of reducing the
likelihood and consequences of the event were examined. The technique the
risk manager employed is called
A. Failure mode and effects analysis (FMEA).
B. SWOT analysis.
C. Fault tree analysis (FTA).
D. Scenario analysis. Right Ans - C. Fault tree analysis (FTA).
, James is the risk manager for a large manufacturing organization with six
locations. Each location has a plant manager who is responsible for the
operation of that location. James feels that the plant managers are in the best
position to identify and measure risk at their locations. He wants them to own
the risk. However, he is looking for a tool that will allow him to prioritize risk
according to the potential effect on the organization. James wants an
interactive tool that will adequately identify the organization's risks, and
allow them to be measured based on likelihood and the level of risk to the
organization. Which one of the following is the most appropriate tool for
James?
A. Risk map
B. SWOT analysis
C. Facilitated workshop
D. Organizational risk register Right Ans - D. Organizational risk register
The use of risk quadrants to identify and categorize risk provides a
framework for
A. Emerging risk identification.
B. Environmental risk identification.
C. Holistic risk identification.
D. Positive risk identification. Right Ans - C. Holistic risk identification.
Lucas, a risk professional for Jones Incorporated, recently met with experts
from the utility industry to discuss the potential loss of supply and risks to the
infrastructure. Lucas must now decide which risks, and proposed treatments,
need to be communicated to the board of Jones Incorporated. Lucas should
make this decision based on
A. Whether any government regulations are involved or not.
B. The organization's risk appetite and tolerance levels.
C. The supply source involved.
D. Whether the risk in natural or man-made. Right Ans - B. The
organization's risk appetite and tolerance levels.
After a month in which three employees were seriously injured at company
paper mills, Ashley, the risk manager of Bright White Paper Company, wanted
some answers about the causes of employee injuries. Ashley independently
contacted the plant manager and foreman at each of the company's plants. She
asked each person to complete a confidential questionnaire regarding safety
procedures. After receiving the responses to the questionnaire, Ashley
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