ARM 401 Exam Practice ARM 400 Practice
Exam Questions WITH MULTIPLE
QUESTIONS AND THE CORRECT
ANSWERS Chosen from Top Universities
Tested and Reliable Exam Strategies
Which one of the following statements is true concerning robotic process automation (RPA)?
A. Although RPA can help control some organizational risks, use of RPA can create other risks.
B. RPA is more focused on the range of tasks that can be performed by a robot rather than
the process of completing a task.
C. RPA cannot be used as part of business process management.
D. When RPA is employed, it always involves the use of robots. - -correct ans- -A
Local Petroleum Distributors (LPD) sells gas and diesel fuel to 72 independent gas stations
and convenience stores. Receiving accurate data on the fuel needs of its customers is a
critical operational concern. LPD installed sensors in the fuel storage tanks owned by each
customer. At 11 PM each evening, the sensors send fuel data electronically to LPD. LPD
receives the data, and a computer enters each record. The data are analyzed, and the
analysis determines which retailers require a fuel shipment in the next three days. The
electronic system has increased operational efficiency as shipments can be better
coordinated, and retailers are no longer required to measure the fuel level and report
manually. LPD's use of a computer to enter the data reported by the sensors is an example of
A. Monte Carlo simulation.
B. Data analytics.
C. Robotic process automation.
D. Blockchain. - -correct ans- -C
Three HillsLaw is a legal firm specializing in multiple-plaintiff cases. One current case involves
alleged birth defects caused by exposure to polluted groundwater. There are currently 78
plaintiffs represented in the pending legal action. Up-to-date records on the condition of
each child is a critical operational concern. Three HillsLaw turned to a secured digital ledger
system in which independent third parties (nurses, physicians, and parents) can update the
,status of individual children, and the record for the entire group is automatically updated.
The latest update showed seven children have died, 14 have a terminal diagnosis, 27 have
permanent disabilities, and 30 cases are listed as "developing" (awaiting definitive diagnosis).
The secured distributed ledger system used by Three HillsLaw is called A. Cryptocurrency. B.
Robotic process automation.
C. Telematics.
D. Blockchain. - -correct ans- -D
The process of comparing the key risk indicators of an organization with those of other
organizations in the same industry is known as A. Hedging. B. Trend analysis.
C. Root cause analysis.
D. Benchmarking. - -correct ans- -D
The board of directors of Insurance Company wants assurance that the company's
recentlyinstituted "commitment to risk management" has been communicated to and
accepted by all company employees. Which one of the following would be the best method
to determine if employees had been informed of the commitment to risk management and
had accepted it?
A. Ask senior management to prepare a report on the subject.
B. Check employee absenteeism before and after the policy was instituted.
C. Ask the internal audit department to administer a risk management questionnaire to
employees.
D. Use a measure such as sales per employee or net income per employee to track
performance. - -correct ans- -C
Degree, closeness, and betweeness all fall into which one of the following categories?
A. Sociograms
B. Reputational risks
C. Matrices
D. Centrality measures - -correct ans- -D
, Durham Insurance (DI) provides personal lines coverage to policyholders throughout the U.S.
A local newspaper in New Jersey has accused DI of unfair and deceptive claims practices
following a recent hurricane. The risk manager works with data scientists to mine news and
social media posts since the release of the initial news article. They learn that the negative
sentiment has spread in a short period of time and that they must implement an immediate
response to defend its reputation. Which one of the following tools would help DI determine
which stakeholder to focus on, and the most influential places to post responses?
A. Sociogram
B. Classification tree
C. Process map
D. Fault tree - -correct ans- -A
In text mining, a collection of documents is called a(n) A.
File.
B. Corpus.
C. Attribute.
D. Token. - -correct ans- -B
Geneva Auto Repair (GAR) has been operating at the same location for over 20 years. The
local newspaper published an article accusing the business of dumping pollutants into a local
stream. GAR has denied the activity, and claims to have records of recycling and tank
inspections to defend its position. The risk manager performed a text mining of social media
websites to see whether any damage has been done to the company's 20 year reputation.
The analysis reveals that the negative comments seem to cluster within a particular
demographic. This information would help the risk manager in which one of the following
ways?
A. It allows GAR to seek to increase its customer base in a different demographic.
B. It allows GAR to tailor its response to concentrate on that demographic.
C. It allows GAR to attempt to discredit the local newspaper with its inspection results.
D. It allows GAR to ignore the news article for now. - -correct ans- -B
Exam Questions WITH MULTIPLE
QUESTIONS AND THE CORRECT
ANSWERS Chosen from Top Universities
Tested and Reliable Exam Strategies
Which one of the following statements is true concerning robotic process automation (RPA)?
A. Although RPA can help control some organizational risks, use of RPA can create other risks.
B. RPA is more focused on the range of tasks that can be performed by a robot rather than
the process of completing a task.
C. RPA cannot be used as part of business process management.
D. When RPA is employed, it always involves the use of robots. - -correct ans- -A
Local Petroleum Distributors (LPD) sells gas and diesel fuel to 72 independent gas stations
and convenience stores. Receiving accurate data on the fuel needs of its customers is a
critical operational concern. LPD installed sensors in the fuel storage tanks owned by each
customer. At 11 PM each evening, the sensors send fuel data electronically to LPD. LPD
receives the data, and a computer enters each record. The data are analyzed, and the
analysis determines which retailers require a fuel shipment in the next three days. The
electronic system has increased operational efficiency as shipments can be better
coordinated, and retailers are no longer required to measure the fuel level and report
manually. LPD's use of a computer to enter the data reported by the sensors is an example of
A. Monte Carlo simulation.
B. Data analytics.
C. Robotic process automation.
D. Blockchain. - -correct ans- -C
Three HillsLaw is a legal firm specializing in multiple-plaintiff cases. One current case involves
alleged birth defects caused by exposure to polluted groundwater. There are currently 78
plaintiffs represented in the pending legal action. Up-to-date records on the condition of
each child is a critical operational concern. Three HillsLaw turned to a secured digital ledger
system in which independent third parties (nurses, physicians, and parents) can update the
,status of individual children, and the record for the entire group is automatically updated.
The latest update showed seven children have died, 14 have a terminal diagnosis, 27 have
permanent disabilities, and 30 cases are listed as "developing" (awaiting definitive diagnosis).
The secured distributed ledger system used by Three HillsLaw is called A. Cryptocurrency. B.
Robotic process automation.
C. Telematics.
D. Blockchain. - -correct ans- -D
The process of comparing the key risk indicators of an organization with those of other
organizations in the same industry is known as A. Hedging. B. Trend analysis.
C. Root cause analysis.
D. Benchmarking. - -correct ans- -D
The board of directors of Insurance Company wants assurance that the company's
recentlyinstituted "commitment to risk management" has been communicated to and
accepted by all company employees. Which one of the following would be the best method
to determine if employees had been informed of the commitment to risk management and
had accepted it?
A. Ask senior management to prepare a report on the subject.
B. Check employee absenteeism before and after the policy was instituted.
C. Ask the internal audit department to administer a risk management questionnaire to
employees.
D. Use a measure such as sales per employee or net income per employee to track
performance. - -correct ans- -C
Degree, closeness, and betweeness all fall into which one of the following categories?
A. Sociograms
B. Reputational risks
C. Matrices
D. Centrality measures - -correct ans- -D
, Durham Insurance (DI) provides personal lines coverage to policyholders throughout the U.S.
A local newspaper in New Jersey has accused DI of unfair and deceptive claims practices
following a recent hurricane. The risk manager works with data scientists to mine news and
social media posts since the release of the initial news article. They learn that the negative
sentiment has spread in a short period of time and that they must implement an immediate
response to defend its reputation. Which one of the following tools would help DI determine
which stakeholder to focus on, and the most influential places to post responses?
A. Sociogram
B. Classification tree
C. Process map
D. Fault tree - -correct ans- -A
In text mining, a collection of documents is called a(n) A.
File.
B. Corpus.
C. Attribute.
D. Token. - -correct ans- -B
Geneva Auto Repair (GAR) has been operating at the same location for over 20 years. The
local newspaper published an article accusing the business of dumping pollutants into a local
stream. GAR has denied the activity, and claims to have records of recycling and tank
inspections to defend its position. The risk manager performed a text mining of social media
websites to see whether any damage has been done to the company's 20 year reputation.
The analysis reveals that the negative comments seem to cluster within a particular
demographic. This information would help the risk manager in which one of the following
ways?
A. It allows GAR to seek to increase its customer base in a different demographic.
B. It allows GAR to tailor its response to concentrate on that demographic.
C. It allows GAR to attempt to discredit the local newspaper with its inspection results.
D. It allows GAR to ignore the news article for now. - -correct ans- -B
