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ARM 401 Study Guide – Complete Set (Well Detailed)
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ARM 401 Study Guide – Complete Set (Well Detailed)
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ARM 401 Study Guide – Complete Set (Well Detailed)Strategic Risk Right Ans - Uncertainties associated with the organization's
long-term goals and management decisions
Operational Risk Right Ans - Uncertainties associated with the
organization's procedures, systems, and policies
Financial Risk Right Ans - Uncertainties associated with the organization's
financial activities
Cloud Computing Right Ans - enables organizations to store and share all
this data through wireless internet and networking services
Telematics in Automobiles (IOT & Telematics) Right Ans - creating a
picture of an insured's driving habits by measuring acceleration, speed,
braking, and distance traveled
Sensors in Buildings (IOT & Telematics) Right Ans - monitor things such as
heat, moisture, noise, and air quality
Drones (IOT & Telematics) Right Ans - take photos or videos of difficult-to-
reach areas to assess damage and danger
Smartphone and Tablets (IOT & Telematics) Right Ans - connect with
others through voice, text, and video, as well as provide a host of other
services, including global positioning system (GPS) tracking
Health Tracker (IOT & Telematics) Right Ans - measure heart rate, steps
walked, and sleep patterns
Robots (IOT & Telematics) Right Ans - assess damage and monitor hazards
and environmental conditions
High-Definition Cameras with Sensors (IOT & Telematics) Right Ans - scan
inspect buildings, bridges, and other structures for signs of erosion and other
risks
,Monte Carlo Simulation Right Ans - a statistical computer model that
simulates the effects that various types of uncertainty may have on a process.
A computer will randomly select values for each variable and generate
thousands of scenarios.
Facilitated Workshops Right Ans - a neutral party, who has no stake in the
outcome or participation responsibilities, administers the risk workshop and
propels the group to achieve its goal
Delphi Technique Right Ans - uses the opinions of a select group of experts
to identify risks. Typically, these experts don't meet but respond to a survey
or inquiry instead.
Scenario Analysis Right Ans - Identifies various risks and projects the
potential consequences of those risks. Useful in identifying a range of
potential consequences and in prioritizing risks.
HAZOP Right Ans - is derived from a hazard and operability study, which is
a comprehensive review of a process or system. A team of subject matter
experts and stakeholders identifies the risks associated with a given process
and recommends a solution.
SWOT Analysis Right Ans - this is a team approach that's useful in
analyzing a new project or product.
Risk Threshold Right Ans - when an organization decides what it's willing
to sacrifice or accept in exchange for achieving its goals
Checklists Right Ans - a tool that is easy to use in order to communicate
known risks to employees with little effort. However, they don't help to
identify unknown risks
Workshops Right Ans - allows attendees to brainstorm and assess risks in
an open, collaborative forum. This allows stakeholders to share their thoughts
and ideas, which allows the organization to become more aware of different
perspectives, gain a fuller understanding of priorities, and contribute to the
organization's ability to reduce the impact of incidents that might 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
Process Flow Analysis Right Ans - dissects processes within the
organization from input to output for the purpose of improving them. When
activities, their relationship to each other, and relevant metrics are reviewed,
an organization can make operating decisions that will allow the process to
proceed more efficiently, flexibly, quickly, and/or cost-effectively
Internal & External Audits Right Ans - have the potential to identify both
negative risks and opportunity risks (risks with a potential upside)
Cause & Effect Analysis Right Ans - identifies the possible reasons, direct
and contributory, that caused a negative event or problem
Fault Tree Analysis Right Ans - is a process that originates with an
assumption about what caused an event or a failure. Working downward from
the assumption (the top event), a diagram is used to connect the factors that
caused the failure and determine how to devise methods to prevent similar
failures in the future
Failure Mode and Effects Analysis (FMEA) Right Ans - uses a team of
individuals to examine a process and identify potential failures at each step in
the process, as well as the consequences of each failure. When failures are
identified, designs and processes can be modified
Which one of the following best describes the use of a risk register?
1. A risk register is used only for one scenario.
2. A risk register is used only to compile all of an organization's risks.
3. A risk register can be used for one scenario or all of an organization's risks.
4. A risk register is used only by risk managers. Right Ans - risk register can
be used for one scenario or all of an organization's risks.
CraftNoise, Inc., makes speakers for consumers' homes. Management knows
that when a customer has to return a defective speaker, that customer will not
return to purchase another one. As a result, CraftNoise will not tolerate having
, more than 2 percent of its speakers returned because of defects. Which one of
the following is this an example of?
1. Setting a risk threshold
2. Creating a risk register
3. Adopting a risk identifier
4. Building a fault tree Right Ans - Setting a risk threshold
Delmar AeroFab Inc. is designing a part for a commercial aircraft that cannot
have any defects. Which of these team-oriented approaches to risk
identification should it adopt?
1. Facilitated workshops
2. Delphi technique
3. HAZOP
4. SWOT Right Ans - HAZOP
Purpose of Risk Registers Right Ans - to prioritize all key risks. This in turn
will create a single living, breathing document rather than a compilation of
documents. It's best to place this final document on a collaborative web-based
platform that allows risk owners, managers, and project leaders to continually
update risk information.
How can a risk register be used? Right Ans - to depict the risks associated
with a scenario model and/or capture and depict all the organization's risks as
a whole. This information from specific scenario risk registers can be
combined into one for the entire organization
Airygen's Organizational Risk Register Right Ans - This scenario method is
only one approach to identify risks for the risk register. Organizations can
organize risks by scenario (windstorm, data breach, etc.), risk quadrants
(hazard, operational, etc.), or affected business unit or risk owner.
Risk managers should ensure that risk registers accomplish... Right Ans - -
Identifying the organization's risk appropriately
- Prioritizing risks according to their potential effects on the organization
- Allowing for collaboration and instant updating by risk managers and
stakeholders
- Tracking improvement actions to take, when they're taken, and when a
follow-up or review will occur
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