ARM 401 Exam Practice 2026
Exam Questions and Answers |
Already Graded A+
A risk map showing a large difference between inherent and residual risk
indicates which one of the following?
A. The risk is within the organization's risk appetite
B. The current risk treatment is ineffective
C. The current risk treatment is effective
D. The risk does not need to be treated - ANSWER ✔✔C
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. The supply source involved.
B. The organization's risk appetite and tolerance levels.
C. Whether the risk in natural or man-made.
D. Whether any government regu - ANSWER ✔✔B
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 th - ANSWER ✔✔B
Insurance Company (IC) sells its coverages through independent
insurance agents. Independent agents represent several insurance
companies. Tom, the president of IC, has learned that the independent
agent who is the highest producer for IC is considering selling his
agency. IC is considering acquiring the agency since Tom is concerned
,that if the agency is sold, IC may lose a substantial amount of business.
Tom asked IC's risk manager to analyze the prospective purchase. The
analysis revealed tha - ANSWER ✔✔D
Murray Trucking is interested in evaluating which risk factors are most
likely to lead to the most costly accidents. They are evaluating risk
factors such as speed, weather conditions, driver experience, distance
traveled, and gross vehicle weight. Which one of the following statistical
measurements would be useful for the risk manager when calculating
the probability of the different risk factors causing severe accidents?
A. Telematics
B. Inverse covariance
C. Variance
D. Monte Carlo simulation - ANSWER ✔✔C
Blithe Manufacturing has experienced a drop in market share. The
marketing department has come up with a way to differentiate their
product in order to regain market share. Blithe has assembled a team of
individuals representing different organizational functions to analyze both
internal and external factors of the new product and decide whether or
not it is feasible. Which one of the following team approaches to risk
identification is Blithe using?
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, A. Delphi technique
B. HAZOP workshop
C. SWOT - ANSWER ✔✔C
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. Overload some individuals with more work than others
B. Try to enrich individuals' work rather than merely expand it
C. Rely on the most senior individuals to t - ANSWER ✔✔B
Shelton Manufacturing executives are growing increasingly concerned
about wildfires and the potential effects on supply chain management.
As the risk professional, Carla has been asked to meet with experts on
the subject and report back to the executive team. Which one of the
following should Carla do before meeting with external wildfire experts?
A. Carla should speak with internal subject-matter experts in hopes that
she can avoid needing the external wildfire experts.
B. Carla should research - ANSWER ✔✔B
Exam Questions and Answers |
Already Graded A+
A risk map showing a large difference between inherent and residual risk
indicates which one of the following?
A. The risk is within the organization's risk appetite
B. The current risk treatment is ineffective
C. The current risk treatment is effective
D. The risk does not need to be treated - ANSWER ✔✔C
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. The supply source involved.
B. The organization's risk appetite and tolerance levels.
C. Whether the risk in natural or man-made.
D. Whether any government regu - ANSWER ✔✔B
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 th - ANSWER ✔✔B
Insurance Company (IC) sells its coverages through independent
insurance agents. Independent agents represent several insurance
companies. Tom, the president of IC, has learned that the independent
agent who is the highest producer for IC is considering selling his
agency. IC is considering acquiring the agency since Tom is concerned
,that if the agency is sold, IC may lose a substantial amount of business.
Tom asked IC's risk manager to analyze the prospective purchase. The
analysis revealed tha - ANSWER ✔✔D
Murray Trucking is interested in evaluating which risk factors are most
likely to lead to the most costly accidents. They are evaluating risk
factors such as speed, weather conditions, driver experience, distance
traveled, and gross vehicle weight. Which one of the following statistical
measurements would be useful for the risk manager when calculating
the probability of the different risk factors causing severe accidents?
A. Telematics
B. Inverse covariance
C. Variance
D. Monte Carlo simulation - ANSWER ✔✔C
Blithe Manufacturing has experienced a drop in market share. The
marketing department has come up with a way to differentiate their
product in order to regain market share. Blithe has assembled a team of
individuals representing different organizational functions to analyze both
internal and external factors of the new product and decide whether or
not it is feasible. Which one of the following team approaches to risk
identification is Blithe using?
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, A. Delphi technique
B. HAZOP workshop
C. SWOT - ANSWER ✔✔C
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. Overload some individuals with more work than others
B. Try to enrich individuals' work rather than merely expand it
C. Rely on the most senior individuals to t - ANSWER ✔✔B
Shelton Manufacturing executives are growing increasingly concerned
about wildfires and the potential effects on supply chain management.
As the risk professional, Carla has been asked to meet with experts on
the subject and report back to the executive team. Which one of the
following should Carla do before meeting with external wildfire experts?
A. Carla should speak with internal subject-matter experts in hopes that
she can avoid needing the external wildfire experts.
B. Carla should research - ANSWER ✔✔B
