ARM 401 EXAM PRACTICE 2025/
2026 QUESTIONS WITH VERIFIED
ANSWER
Which one of the following is an example of a managerial control
used to mitigate cyber risk exposures?
A. Centralizing responsibility for cyber security
B. Establish a privacy policy for employees
C. Try to maintain positive relationships with customers
D. Install antivirus software on every computer - correct answer -A
When using fault tree analysis (FTA), an "or" gate indicates which
one of the following?
A. That either event leading to the gate will prevent the next event
from occurring.
B. That all of the events leading to the gate must occur or the next
event will not occur.
C. That the event leading to the gate will cause one of the two
events above the gate to occur.
D. That any one of the events leading to the gate is sufficient to
cause that event to occur. - correct answer -D
,Which one of the following statements regarding controlling social
media risks is true?
A. Employers may monitor social media websites to learn about
and to control risky employee activities.
B. As social media is developing so rapidly, a risk control program
cannot have a written social media policy.
C. Employees may not be prohibited from using social media
while at work.
D. Risk control measures regarding social media should be
developed by the information technology department rather than
by the risk management department. - correct answer -A
Do-It-Yourself (DIY) is a chain of building material and home
repair stores located in the Southeastern part of the United
States. DIY always experiences a "run" on sheets of plywood and
generators whenever hurricanes occur. Customers also want fuel
and bottled water when they come to DIY after hurricanes. To
speed the process of getting necessary products to stores with
the greatest need, DIY entered into a contract with a supplier that
will ship extra products overnight to stores close to where a
Category 3 or higher hurricane is expected to make landfall. DIY
uses forecast data from the National Weather Service. So far, the
results have been favorable. DIY's standing order to have
,products sent to its stores when hurricane losses are imminent is
an example of a
A. Robotic process automation.
B. Contingent capital arrangement.
C. Risk management information system.
D. Smart contract. - correct answer -D
The assembly line production speed was automatically reduced
when a sensor detected employee fatigue. Which one of the
following technological advancements is responsible for this
supply chain risk management tool?
A. Internet of Things
B. Blockchain
C. Track and trace technology
D. Radio frequency identification tags - correct answer -A
North American Furnishing was unable to meet its production
goals when one of its key suppliers of leather went out of
business with no advanced notice. Which one of the following
categories of operational risk would this be classified as?
A. Process
B. People
, C. External event
D. Systems - correct answer -C
Ready Van Lines installed sensors in all the vehicles in the
company fleet. The sensors record fluid levels, tire pressure, and
key mechanical data. The sensors also record driving behavior,
such as rate of acceleration from a standing stop, braking time,
average highway driving speed, and hours of use. The data
obtained from the sensors helps Ready Van Lines to target
vehicle maintenance and repair needs, as well as unsafe driving
behavior. All Ready Van Lines use of the sensors illustrates
A. The use of robotic process automation to reduce data entry
errors.
B. The use of telematics to reduce operational risk.
C. The use of blockchain to improve financial results.
D. The use of data analytics to improve competitive position. -
correct answer -B
Pacific Fuel Company stores refined gasoline in a large
underground storage tank, which is encased in a second tank,
called a "double hull." Pacific Fuel's risk manager, Merrill, is
concerned that fuel could leak from the tank and pollute the
ground. To analyze this risk, he constructed an event tree. He
believes there is a 40% probability that there will be a leak in the
2026 QUESTIONS WITH VERIFIED
ANSWER
Which one of the following is an example of a managerial control
used to mitigate cyber risk exposures?
A. Centralizing responsibility for cyber security
B. Establish a privacy policy for employees
C. Try to maintain positive relationships with customers
D. Install antivirus software on every computer - correct answer -A
When using fault tree analysis (FTA), an "or" gate indicates which
one of the following?
A. That either event leading to the gate will prevent the next event
from occurring.
B. That all of the events leading to the gate must occur or the next
event will not occur.
C. That the event leading to the gate will cause one of the two
events above the gate to occur.
D. That any one of the events leading to the gate is sufficient to
cause that event to occur. - correct answer -D
,Which one of the following statements regarding controlling social
media risks is true?
A. Employers may monitor social media websites to learn about
and to control risky employee activities.
B. As social media is developing so rapidly, a risk control program
cannot have a written social media policy.
C. Employees may not be prohibited from using social media
while at work.
D. Risk control measures regarding social media should be
developed by the information technology department rather than
by the risk management department. - correct answer -A
Do-It-Yourself (DIY) is a chain of building material and home
repair stores located in the Southeastern part of the United
States. DIY always experiences a "run" on sheets of plywood and
generators whenever hurricanes occur. Customers also want fuel
and bottled water when they come to DIY after hurricanes. To
speed the process of getting necessary products to stores with
the greatest need, DIY entered into a contract with a supplier that
will ship extra products overnight to stores close to where a
Category 3 or higher hurricane is expected to make landfall. DIY
uses forecast data from the National Weather Service. So far, the
results have been favorable. DIY's standing order to have
,products sent to its stores when hurricane losses are imminent is
an example of a
A. Robotic process automation.
B. Contingent capital arrangement.
C. Risk management information system.
D. Smart contract. - correct answer -D
The assembly line production speed was automatically reduced
when a sensor detected employee fatigue. Which one of the
following technological advancements is responsible for this
supply chain risk management tool?
A. Internet of Things
B. Blockchain
C. Track and trace technology
D. Radio frequency identification tags - correct answer -A
North American Furnishing was unable to meet its production
goals when one of its key suppliers of leather went out of
business with no advanced notice. Which one of the following
categories of operational risk would this be classified as?
A. Process
B. People
, C. External event
D. Systems - correct answer -C
Ready Van Lines installed sensors in all the vehicles in the
company fleet. The sensors record fluid levels, tire pressure, and
key mechanical data. The sensors also record driving behavior,
such as rate of acceleration from a standing stop, braking time,
average highway driving speed, and hours of use. The data
obtained from the sensors helps Ready Van Lines to target
vehicle maintenance and repair needs, as well as unsafe driving
behavior. All Ready Van Lines use of the sensors illustrates
A. The use of robotic process automation to reduce data entry
errors.
B. The use of telematics to reduce operational risk.
C. The use of blockchain to improve financial results.
D. The use of data analytics to improve competitive position. -
correct answer -B
Pacific Fuel Company stores refined gasoline in a large
underground storage tank, which is encased in a second tank,
called a "double hull." Pacific Fuel's risk manager, Merrill, is
concerned that fuel could leak from the tank and pollute the
ground. To analyze this risk, he constructed an event tree. He
believes there is a 40% probability that there will be a leak in the
