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ARM 401 Practice Exam: Questions & Proper Answers
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ARM 401 Practice Exam: Questions & Proper Answers
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ARM 401 Practice Exam: Questions & Proper AnswersRisk maps differ from other risk assessment tools and techniques in which
one of the following ways? Right Ans - 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? Right Ans - Fault tree analysis
The important first step in a decision-making model is to Right Ans - 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 Right
Ans - Energy transfer theory
Degree, closeness, and betweeness all fall into which one of the following
categories? Right Ans - Centrality Measures
A risk management professional should ensure that an organizational risk
register has which one of the following characteristics? Right Ans -
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)? Right Ans - 8.00%
Which one of the following occurs when individuals, departments, or teams
from different areas work together to accomplish a shared organizational
goal? Right Ans - Collaboration
, A phase in the life of a system when the basic purpose and preliminary design
of the system are formulated is the Right Ans - 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? Right Ans - Intangible Property
Data analytics is especially useful for Right Ans - 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? Right Ans - 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? Right Ans - 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 Right Ans - 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? Right Ans - Scenario Analysis
Certain types of property losses such as drought, flood, and earthquake are
referred to as natural because Right Ans - It is beyond human control.
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