11/1/24, 12:25 AM ARM 401 Exam Practice Flashcards | Quizlet
ARM 401 Exam PracticeANSWERS SOLVED CORRECTLY
TO SCORE A+
Terms in this set (428)
A risk map showing a large difference C
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
Lucas, a risk professional for Jones B
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 regulations are
involved or not.
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,11/1/24, 12:25 AM ARM 401 Exam Practice Flashcards | Quizlet
SoCal Movie Company produces movies at B
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 the risk manager is
called
A. SWOT analysis.
B. Scenario analysis.
C. Sensitivity analysis.
D. HAZOP analysis.
Insurance Company (IC) sells its coverages D
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 that the acquisition would
likely secure most of IC's book of business
with the agency but also revealed local
competitors that would try to place the
business as well. In addition, the analysis
revealed the opportunity for IC to move
some accounts currently placed with other
insurers over to IC. Also, it was learned that
a competitor expressed an interest in the
agency acquisition. The analysis performed
by the risk manager is a form of
A. Decision tree analysis.
B. HAZOP analysis.
C. Risk map analysis.
D. SWOT analysis.
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, 11/1/24, 12:25 AM ARM 401 Exam Practice Flashcards | Quizlet
Murray Trucking is interested in evaluating C
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
Blithe Manufacturing has experienced a C
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?
A. Delphi technique
B. HAZOP workshop
C. SWOT analysis
D. Scenario analysis
William is a project manager for Parker B
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
take on additional duties
D. Focus on the individuals' personality
rather than results
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ARM 401 Exam PracticeANSWERS SOLVED CORRECTLY
TO SCORE A+
Terms in this set (428)
A risk map showing a large difference C
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
Lucas, a risk professional for Jones B
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 regulations are
involved or not.
https://quizlet.com/525165208/arm-401-exam-practice-flash-cards/ 1/28
,11/1/24, 12:25 AM ARM 401 Exam Practice Flashcards | Quizlet
SoCal Movie Company produces movies at B
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 the risk manager is
called
A. SWOT analysis.
B. Scenario analysis.
C. Sensitivity analysis.
D. HAZOP analysis.
Insurance Company (IC) sells its coverages D
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 that the acquisition would
likely secure most of IC's book of business
with the agency but also revealed local
competitors that would try to place the
business as well. In addition, the analysis
revealed the opportunity for IC to move
some accounts currently placed with other
insurers over to IC. Also, it was learned that
a competitor expressed an interest in the
agency acquisition. The analysis performed
by the risk manager is a form of
A. Decision tree analysis.
B. HAZOP analysis.
C. Risk map analysis.
D. SWOT analysis.
https://quizlet.com/525165208/arm-401-exam-practice-flash-cards/ 2/28
, 11/1/24, 12:25 AM ARM 401 Exam Practice Flashcards | Quizlet
Murray Trucking is interested in evaluating C
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
Blithe Manufacturing has experienced a C
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?
A. Delphi technique
B. HAZOP workshop
C. SWOT analysis
D. Scenario analysis
William is a project manager for Parker B
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
take on additional duties
D. Focus on the individuals' personality
rather than results
https://quizlet.com/525165208/arm-401-exam-practice-flash-cards/ 3/28
