ARM 401 Study guides, Study notes & Summaries

Risk threshold - The level of risk exposure above which risks are addressed and below which risks may be accepted. Sensor - A device that responds to a physical stimulus (as heat, light, sound, pressure, magnetism, or a particular motion) and transmits a resulting impulse (as for measurement or operating a control). Radio frequency identification (RFID) - uses electronic tags and labels to identify objects wirelessly over short distances Artificial intelligence (AI) - Simulates human intel...

What does the holistic approach to managing risk encompass? - Analysis and predictability of business processes and organizational decisions What is the premise of holistic risk management? - All business decisions and operations carry some risk What are the four quadrants of risk? - Hazard risk, Operational Risk, Strategic Risk, Financial Risk What is today's conception of risk? - The idea that taking risks is fundamentally necessary for growth

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 - C

holistic approach to managing risk - -broader in scope, managing all areas of the business, not just hazard risks -encompasses the analysis and predictability of business processes and organizational decisions -mandates the collaboration of internal and external stakeholders to identify, assess, and treat risks -involves looking at what might be gained from decisions or actions -can uncover inconsistencies in how a company managers loss retention -can help orgs better absorb losses strate...

HAZOP Process Steps - 1. Divide project/system into small components 2. Review components to identify risk 3. Identify cause and potential outcomes of risks 4. Develop solutions to risks 5. Ensure solutions work and reevaluate SWOT analysis (strengths, weaknesses, opportunities, threats) - A SWOT analysis is useful when there is a specific goal, such as determining whether engaging in a new product or project is feasible. It's less useful for analyzing current processes and procedures ...

B. Indenture levels - Air-Freight Company wants to use failure mode and effects analysis (FMEA) to analyze its systems, subsystems, components, sub-assemblies, and parts. Level 1 is the overall system for shipping freight. Level 2 is the system segments, with the prime items (air freight hubs, schedulers, and logistics) designated as Level 3. Level 4 is the subsystems (local freight handlers, package sorters, etc.). Level 5 is the hardware and parts (forklifts, conveyor belts, planes, and de...

strategic risk - uncertainties associated with the organizations long term goals and management decisions operational risk - uncertainties associated with the organizations procedures, systems, and policies financial risk - uncertainties associated with the organizations financial activities facilitated workshops - a neutral party, who has no stake int he outcome or participation responsibilities, administers the risk workshop and propels the group to achieve its goal

ARM 401 Practice Exam | 82 Questions and Answers 100% Correct | Latest Update 2024

ARM 401 Exam Practice | 428 Actual Questions and Answers Verified by Expert | Latest Update 2024