ARM401 PRACTICE REAL EXAM ACCURATE
QUESTIONS WITH 100% RATED CORRECT ANSWERS
EXPERT VERIFIED GET IT A+ 2025 LATEST UPDATED
A risk map showing a large difference 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 - ...(ANSWERS)....C
Lucas, a risk professional for Jones 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. - ...(ANSWERS)....B
SoCal Movie Company produces movies at 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. - ...(ANSWERS)....B
Insurance Company (IC) sells its coverages 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 - ...(ANSWERS)....D
Murray Trucking is interested in evaluating 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 - ...(ANSWERS)....C
Blithe Manufacturing has experienced a 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 - ...(ANSWERS)....C
William is a project manager for Parker 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 - ...(ANSWERS)....B
, Shelton Manufacturing executives are growing increasingly concerned about
wildfires and the potential effects on supply chain management. As the risk
professional, Carla has been asked to meet with experts on the subject and report
back to the executive team. Which one of the following should Carla do before
meeting with external wildfire experts?
A. Carla should speak with internal subject-matter experts in hopes that she can
avoid needing the external wildfire experts.
B. Carla should research the field and get a working understanding of wildfires.
C. Carla should solicit questions from internal experts and submit them to the
external wildfire experts.
D. Carla should try to learn as much as possible about wildfires, so she can
impress the wildfire experts. - ...(ANSWERS)....B
An organization practicing holistic risk management would assess the cost of raw
materials and foreign exchange risk under which one of the following quadrants
of risk?
A. Strategic risk
B. Financial risk
C. Operational risk
D. Hazard risk - ...(ANSWERS)....B
Risk maps differ from other risk assessment tools and techniques in which one of
the following ways?
A. Risk maps dissect processes within the organization from input to output for
the purpose of improving them.
QUESTIONS WITH 100% RATED CORRECT ANSWERS
EXPERT VERIFIED GET IT A+ 2025 LATEST UPDATED
A risk map showing a large difference 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 - ...(ANSWERS)....C
Lucas, a risk professional for Jones 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. - ...(ANSWERS)....B
SoCal Movie Company produces movies at 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. - ...(ANSWERS)....B
Insurance Company (IC) sells its coverages 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 - ...(ANSWERS)....D
Murray Trucking is interested in evaluating 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 - ...(ANSWERS)....C
Blithe Manufacturing has experienced a 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 - ...(ANSWERS)....C
William is a project manager for Parker 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 - ...(ANSWERS)....B
, Shelton Manufacturing executives are growing increasingly concerned about
wildfires and the potential effects on supply chain management. As the risk
professional, Carla has been asked to meet with experts on the subject and report
back to the executive team. Which one of the following should Carla do before
meeting with external wildfire experts?
A. Carla should speak with internal subject-matter experts in hopes that she can
avoid needing the external wildfire experts.
B. Carla should research the field and get a working understanding of wildfires.
C. Carla should solicit questions from internal experts and submit them to the
external wildfire experts.
D. Carla should try to learn as much as possible about wildfires, so she can
impress the wildfire experts. - ...(ANSWERS)....B
An organization practicing holistic risk management would assess the cost of raw
materials and foreign exchange risk under which one of the following quadrants
of risk?
A. Strategic risk
B. Financial risk
C. Operational risk
D. Hazard risk - ...(ANSWERS)....B
Risk maps differ from other risk assessment tools and techniques in which one of
the following ways?
A. Risk maps dissect processes within the organization from input to output for
the purpose of improving them.
