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ARM 401 Practice Exam with 100% correct answers | verified | latest update 2024
ARM 401 Practice Exam with 100% correct answers | verified | latest update 2024
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ARM 401 Practice ExamRisk maps differ from other risk assessment tools and techniques in which one of the
following ways?
Risk maps identify, prioritize, and quantify risks in a two-dimensional pictorial that illustrates
frequency and severity on vertical and horizontal axes.
Vicki has been hired to investigate industrial accidents for a biotech company that produces
a number of drugs. In most cases, she will be asked to look at a particular system failure and
trace the events leading to the failure backwards. Which system safety analysis technique
would be most appropriate for this application?
Fault tree analysis
The important first step in a decision-making model is to
Define the problem
Modifying the contact surface or basic structure that can be affected by installing breakaway
highway light poles or requiring front and side airbags in automobiles to cushion occupants'
impact is a basic strategy of the
Energy transfer theory
Degree, closeness, and betweeness all fall into which one of the following categories?
Centrality Measures
A risk management professional should ensure that an organizational risk register has which
one of the following characteristics?
Provides interactive use for risk owners
The chief financial officer of XYZ Insurance Company believes that $50 million is the
appropriate capital charge for the company's underwriting division. The division is predicted
to generate revenue of $25 million this year and expenses of $22 million. Assuming a
risk-free rate of 2% on the capital charge, what is this division's return on capital (ROC)?
8.00%
Which one of the following occurs when individuals, departments, or teams from different
areas work together to accomplish a shared organizational goal?
Collaboration
, A phase in the life of a system when the basic purpose and preliminary design of the system
are formulated is the
Conceptual phase
The unauthorized intrusion into a company's computer network resulting in damage to
intellectual property is best classified as which one of the following types of cyber liability
exposures?
Intangible Property
Data analytics is especially useful for
unstructured data
One of the ways in which probabilities can be developed is theoretically. Which one of the
following is an example of an event for which probability can be determined theoretically?
The number of times heads can be expected to turn up over multiple coin tosses
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?
Organizational risk register
Economic capital attempts to quantify the various risks faced by an organization. One such
risk is loss of value because of not properly matching asset and liability cash flows. This risk
is called
Liquidity risk.
SE Industries has identified windstorm as a risk. The risk manager has assembled a team to
project the potential consequences of windstorm. The team includes individuals from various
functions within the organization. Which one of the following team approaches to risk
identification is SE Industries using?
Scenario Analysis
Certain types of property losses such as drought, flood, and earthquake are referred to as
natural because
It is beyond human control.
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