ARM 400
The fundamental purpose of a risk management framework is to Right Ans
- Integrate risk management throughout the organization
Company G is a manufacturer of high profile golf equipment. The risk
management professional for Company G is concerned about loss of business
related to product design. Failing to respond to changing customer demand
and preferences in the design of golf clubs could cost Company G significant
market share. Categorized according to the quadrants of risk, this exposure to
loss is classified as Right Ans - Strategic Risk
Aligning risks with the organization's risk appetite defines Right Ans -
Tolerable uncertainty
An organization must meet the standard of care that it owes to others in order
to ensure that Right Ans - Legal obligations are satisfied
When communicating a decision up the organization's chain of command,
consulting with outside experts can help a risk management professional do
which one of the following? Right Ans - Enhance stakeholders' confidence
in the process
Which one of the following statements is true with regard to preventive
analytics? Right Ans - Preventive analytics uses smart products and data
analytics to identify root loss causes and their implications.
Autonomous Vehicle Applications (AVA) is a start-up company that develops
safety technologies that can be sold to companies that are producing
autonomous vehicles. One technology AVA is developing allows an
autonomous vehicle to detect, extract, and analyze images; and then to
respond to the images. For example, the technology would detect a presence
in a crosswalk, extract the image, and a computer would analyze the image.
When the image was determined to be a human being, the vehicle would slow
down or stop until the crosswalk was clear. This technology, which is
designed to capture and analyze images, and to act on the recognition of the
image; is called Right Ans - Computer Vision
, The emerging technologies applied to risk assessment and control link the
physical domain to the virtual domain. Together, these domains linked by the
emerging technologies create a Right Ans - Connected ecosystem.
It's not cost effective to use human assets to inspect tracks, bridges, and
trestles. Instead, SIR has started to use drones. A drone can fly low over tracks
and above/below bridges and trestles. The drones record video that is
transmitted to corporate headquarters where it is simultaneously scanned for
derailment hazards. In the past six months, the drones detected a track
blockage caused by a rock slide and damage to tracks in a remote area cause
by an earthquake. SIR dispatched work crews to make the tracks once again
passable, and no derailments occurred. SIR's use of drones, video, real-term
video scanning, and computer analysis illustrates which one of the following?
Right Ans - Preventative analytics
A municipal water plant installed water flow sensors and water pressure
sensors on the water pipes leaving the plant. The sensors make sure water is
flowing properly and that there are no leaks or clogs which could produce a
loss. These types of sensors are Right Ans - Mechanical Sensors
Mutual Fund Company (MFC) offers a wide array of mutual fund options to
investors. Each mutual fund has a different fund objective and set of
investment guidelines that apply to the fund. While MFC gives considerable
freedom to its fund portfolio managers, they are required to abide by the
fund's investment guidelines. To monitor compliance, MFC developed a
computer algorithm. The computer algorithm continuously monitors each
fund's compliance with investment guidelines. If a fund manager violates the
investment guidelines, the computer immediately notifies MFC's internal
control director, and corrective action is taken. MFC's use of the computer
algorithm to monitor investment compliance and to provide notification when
corrective action is necessary illustrates use of Right Ans - Artificial
intelligence.
After opening its third store, Shoehorn Shoes decided to purchase new
inventory tracking software for all of its stores. Which one of the following
external or internal environments does this decision relate to? Right Ans -
Operations environment
The fundamental purpose of a risk management framework is to Right Ans
- Integrate risk management throughout the organization
Company G is a manufacturer of high profile golf equipment. The risk
management professional for Company G is concerned about loss of business
related to product design. Failing to respond to changing customer demand
and preferences in the design of golf clubs could cost Company G significant
market share. Categorized according to the quadrants of risk, this exposure to
loss is classified as Right Ans - Strategic Risk
Aligning risks with the organization's risk appetite defines Right Ans -
Tolerable uncertainty
An organization must meet the standard of care that it owes to others in order
to ensure that Right Ans - Legal obligations are satisfied
When communicating a decision up the organization's chain of command,
consulting with outside experts can help a risk management professional do
which one of the following? Right Ans - Enhance stakeholders' confidence
in the process
Which one of the following statements is true with regard to preventive
analytics? Right Ans - Preventive analytics uses smart products and data
analytics to identify root loss causes and their implications.
Autonomous Vehicle Applications (AVA) is a start-up company that develops
safety technologies that can be sold to companies that are producing
autonomous vehicles. One technology AVA is developing allows an
autonomous vehicle to detect, extract, and analyze images; and then to
respond to the images. For example, the technology would detect a presence
in a crosswalk, extract the image, and a computer would analyze the image.
When the image was determined to be a human being, the vehicle would slow
down or stop until the crosswalk was clear. This technology, which is
designed to capture and analyze images, and to act on the recognition of the
image; is called Right Ans - Computer Vision
, The emerging technologies applied to risk assessment and control link the
physical domain to the virtual domain. Together, these domains linked by the
emerging technologies create a Right Ans - Connected ecosystem.
It's not cost effective to use human assets to inspect tracks, bridges, and
trestles. Instead, SIR has started to use drones. A drone can fly low over tracks
and above/below bridges and trestles. The drones record video that is
transmitted to corporate headquarters where it is simultaneously scanned for
derailment hazards. In the past six months, the drones detected a track
blockage caused by a rock slide and damage to tracks in a remote area cause
by an earthquake. SIR dispatched work crews to make the tracks once again
passable, and no derailments occurred. SIR's use of drones, video, real-term
video scanning, and computer analysis illustrates which one of the following?
Right Ans - Preventative analytics
A municipal water plant installed water flow sensors and water pressure
sensors on the water pipes leaving the plant. The sensors make sure water is
flowing properly and that there are no leaks or clogs which could produce a
loss. These types of sensors are Right Ans - Mechanical Sensors
Mutual Fund Company (MFC) offers a wide array of mutual fund options to
investors. Each mutual fund has a different fund objective and set of
investment guidelines that apply to the fund. While MFC gives considerable
freedom to its fund portfolio managers, they are required to abide by the
fund's investment guidelines. To monitor compliance, MFC developed a
computer algorithm. The computer algorithm continuously monitors each
fund's compliance with investment guidelines. If a fund manager violates the
investment guidelines, the computer immediately notifies MFC's internal
control director, and corrective action is taken. MFC's use of the computer
algorithm to monitor investment compliance and to provide notification when
corrective action is necessary illustrates use of Right Ans - Artificial
intelligence.
After opening its third store, Shoehorn Shoes decided to purchase new
inventory tracking software for all of its stores. Which one of the following
external or internal environments does this decision relate to? Right Ans -
Operations environment
