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ARM 401 Exam Practice 2025 | Comprehensive Study Guide, Key Risk Management Concepts, Practice Questions, and Exam Preparation Resources

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ARM 401 Exam Practice 2025 | Comprehensive Study Guide, Key Risk Management Concepts, Practice Questions, and Exam Preparation Resources

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ARM 401 Exam Practice WITH MULTIPLE
QUESTIONS AND THE CORRECT ANSWERS
Tailored for Top Grades
A worker for Build-Rite Construction Company removed the pressure gauge and warning
sticker from an air compressor. The pressure gauge automatically shuts off the compressor
when the pressure gets too high. The sticker warned that an explosion could result if the
pressure was too high. Without the pressure gauge in place, the air compressor exploded.
The explosion killed one worker and severely injured another. If Build-Rite performs a root
cause analysis (RCA) of this fatal accident, which one of the following might be determined
to be a root cause?

A. Inadequate training

B. Removal of the pressure gauge

C. Explosion of the air compressor

D. Removal of the warning sticker - -correct ans- -A



The second step in the root cause analysis (RCA) process is charting the agents that directly
result in one event triggering another event. In RCA, these agents are called A. Causal
factors.

B. Hygiene factors.

C. Precedence factors.

D. Stimulus factors. - -correct ans- -A



Fault tree analysis provides guidance in choosing among loss prevention alternatives. An
"and" gate connecting events in rectangles C, D, and E to the event in rectangle A indicates
which one of the following?

A. The event in rectangle C must be prevented in order to prevent the events in
rectangles D and E from occurring.

B. The event in rectangle C must be prevented in order to prevent the event in
rectangle A from occurring.

,C. Preventing the event in rectangle C, D, or E from occurring will prevent the event in
rectangle A from occurring.




D. The events in rectangles C, D, and E must all be prevented in order to prevent the
event in rectangle A from occurring. - -correct ans- -C



From a system safety perspective, change analysis is an analysis

A. That dissects a repetitive task to determine potential hazards if each action is not
performed.

B. That identifies the critical components of a system and ranks the severity of losing each
component.

C. That uses the results of the other analysis techniques to identify the cause of the
accident.

D. That projects the effects a given system change is likely to have on an existing system. - -



correct ans- -D



An organization may use several forms of analysis to prioritize risks and maximize risk control
resources. Under one type of analysis, the direction of reasoning in fault tree analysis is
reversed by starting with causes and branching out to consequences. This type of analysis is
called

A. Root cause analysis.

B. Sensitivity analysis.

C. Failure mode and effects analysis.

D. "5 Whys" analysis. - -correct ans- -C



An organization has had a high percentage of repetitive stress injuries to workers in a
particular phase of their production process. The risk manager has been asked to analyze
these injuries from a system safety analysis perspective. Which one of the following
techniques should the risk manager use to investigate these accidents?

A. Future states analysis

, A.
B. Job safety analysis

C. Strategy analysis

D. Failure mode and effects analysis - -correct ans- -B

The initial phase in the life cycle in any safety system is the

Engineering phase. B.

Conceptual phase.

C. Production phase.

D. Preliminary phase. - -correct ans- -B



Harris Company is analyzing its workers compensation loss exposure. Harris Company retains
most of the exposure and purchases excess insurance to cap its liability on any individual
claim. Because Harris Company has a large work force, it can predict its workers compensation
cost with some level of accuracy. For next year, the risk manager estimates that there is a 70%
chance that workers compensation costs will be $6 million or less, a 25% chance workers
compensation costs will be between $6 million and $8 million, and a 5% chance workers
compensation costs will exceed $8 million. The type of analysis the risk manager performed
is called A. SWOT analysis. B. HAZOP analysis.

C. Quantitative analysis.

D. Qualitative analysis - -correct ans- -C



To accurately determine its level of risk, an organization must examine the effectiveness of
its efforts to prevent losses from occurring and to reduce the severity of losses that do occur.
An organization's efforts in this area are called A. Risk identification. B.

Risk control.

C. Risk transfer.

D. Risk retention. - -correct ans- -B



From a system safety perspective, components of a system include A.

Physical elements.

B. Manufacturing and distribution.

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