11/1/24, 12:25 AM ARM 401 Practice Exam Flashcards | Quizlet
ARM 401 Practice ExamANSWERS SOLVED CORRECTLY
TO SCORE A+
Risk maps differ from other risk assessment Risk maps identify, prioritize, and quantify risks in a two-dimensional pictorial that
tools and techniques in which one of the illustrates frequency and severity on vertical and horizontal axes.
following ways?
Vicki has been hired to investigate Fault tree analysis
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?
The important first step in a decision- Define the problem
making model is to
Modifying the contact surface or basic Energy transfer theory
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
Degree, closeness, and betweeness all fall Centrality Measures
into which one of the following categories?
A risk management professional should Provides interactive use for risk owners
ensure that an organizational risk register
has which one of the following
characteristics?
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, 11/1/24, 12:25 AM ARM 401 Practice Exam Flashcards | Quizlet
The chief financial officer of XYZ Insurance 8.00%
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)?
Which one of the following occurs when Collaboration
individuals, departments, or teams from
different areas work together to
accomplish a shared organizational goal?
A phase in the life of a system when the Conceptual phase
basic purpose and preliminary design of
the system are formulated is the
The unauthorized intrusion into a Intangible Property
company's computer network resulting in
damage to intellectual property is best
classified as which one of the following
types of cyber liability exposures?
Data analytics is especially useful for unstructured data
One of the ways in which probabilities can The number of times heads can be expected to turn up over multiple coin tosses
be developed is theoretically. Which one of
the following is an example of an event for
which probability can be determined
theoretically?
James is the risk manager for a large Organizational risk register
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?
Economic capital attempts to quantify the Liquidity risk.
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
https://quizlet.com/774931887/arm-401-practice-exam-flash-cards/ 2/12
ARM 401 Practice ExamANSWERS SOLVED CORRECTLY
TO SCORE A+
Risk maps differ from other risk assessment Risk maps identify, prioritize, and quantify risks in a two-dimensional pictorial that
tools and techniques in which one of the illustrates frequency and severity on vertical and horizontal axes.
following ways?
Vicki has been hired to investigate Fault tree analysis
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?
The important first step in a decision- Define the problem
making model is to
Modifying the contact surface or basic Energy transfer theory
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
Degree, closeness, and betweeness all fall Centrality Measures
into which one of the following categories?
A risk management professional should Provides interactive use for risk owners
ensure that an organizational risk register
has which one of the following
characteristics?
https://quizlet.com/774931887/arm-401-practice-exam-flash-cards/ 1/12
, 11/1/24, 12:25 AM ARM 401 Practice Exam Flashcards | Quizlet
The chief financial officer of XYZ Insurance 8.00%
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)?
Which one of the following occurs when Collaboration
individuals, departments, or teams from
different areas work together to
accomplish a shared organizational goal?
A phase in the life of a system when the Conceptual phase
basic purpose and preliminary design of
the system are formulated is the
The unauthorized intrusion into a Intangible Property
company's computer network resulting in
damage to intellectual property is best
classified as which one of the following
types of cyber liability exposures?
Data analytics is especially useful for unstructured data
One of the ways in which probabilities can The number of times heads can be expected to turn up over multiple coin tosses
be developed is theoretically. Which one of
the following is an example of an event for
which probability can be determined
theoretically?
James is the risk manager for a large Organizational risk register
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?
Economic capital attempts to quantify the Liquidity risk.
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
https://quizlet.com/774931887/arm-401-practice-exam-flash-cards/ 2/12
