ARM 401 - SEGMENT A – CH1- 3 QUESTIONS
The Range or amount of risk that is acceptable - Answers -Risk Threshold
A device that detects and measures stimuli in its environment - Answers -Sensor
A technology that uses radio frequency to identify objects - Answers -Radio Frequency
Identification (RFID)
Computer processing or output that stimulates human reasoning or knowledge -
Answers -Artificial intelligence (AI)
A technology that stimulates human vision - Answers -Computer vision
A tool developed at the risk owner level that links specific activities, processes, projects,
or plans to a list of identified risks and results of risk analysis and evaluation and that is
ultimately consolidated at the enterprise level - Answers -Risk Register
A template depicting the likelihood and potential impact/consequences of risks -
Answers -Risk Map
Amount of risk an organization is willing to take on in order to achieve an anticipated
result or return - Answers -Risk appetite
The level of risk that would be faced if it were to remain untreated or no action were to
be taken after the level of risk - Answers -Inherent Risk
The level of risk remaining after actions are taken to alter the level of risk - Answers -
Residual Risk
The level of risk that is within an organization's risk appetite - Answers -Optimum risk
The measure of how to random risk variables will change in relationship to each other;
It's used to calculate the correlation between varibales - Answers -Covariance
The spread of the data set - or how far apart the numbers are in relation to the mean
(average) - Answers -Variance
Technique: A neutral party, who has no stake in the outcome or participation
responsibilities, administers the risk workshop and propels the group to achieve its
goals
Can be used for a specific project or process, as well as to identify those risks that
affect overall organizational objectives - Answers -Facilitated Workshops
, -Technique: Uses the opinions of select group of experts to identify risks.
-Typically, these experts don't meet but respond to a survey or inquiry instead
-Submits two rounds of queries to the selected experts
-First, each expert responds to a question and the combined answers, which remain
anonymous, are presented to the group
-The same question is then posed again to the experts, who are instructed to consider
revising their responses based on the results that were reported to the group
-This technique was originally used to forecast new developments, such as innovations
in tech - Answers -Delphi Technique
Benefits of Delphi Technique - Answers --Cost-effective because it doesn't require the
resources necessary to assemble a facilitated workshop of experts
-Keeping responses anonymous can eliminate group bias and encourage participants to
give honest answers
Disadvantage of Delphi Technique - Answers -Experts opinions may be limited to their
current thinking on a subject
Technique: Identifies risks and predicts the potential consequences of those specific
risks
Benefit: Brings all of these concerns together, so they can be addressed as a whole
Disadvantage: The risk identification process may be limited by the imagination and
brainstorming capabilities of the team selected, which could lead to overlooking key
risks or consequences of risks - Answers -Scenario Analysis
Technique: A team of subject matter experts and stakeholders identifies the risks
associated with a given process and recommends a solution
-Primary used to design complex, scientific systems such as those used in engineering,
chemical, computer ops, etc. - Answers -HAZOP
What are the steps in the HAZOP Process? - Answers -1. Subdivides the project or
system design into small components
2. Reviews each component to identify risks
3. Identifies the cause and potential outcomes for each risk
4. Develops a solution for each risk
5. Ensures that solutions work and reevaluates as necessary
Technique: Team approach that's useful in analyzing a new project or product. The
strengths and weaknesses are internal environmental factors to be considered. The
opportunities and threats are external factors
-Useful when there is a specific goal, such as determining whether engaging in a new
product or project is feasible
The Range or amount of risk that is acceptable - Answers -Risk Threshold
A device that detects and measures stimuli in its environment - Answers -Sensor
A technology that uses radio frequency to identify objects - Answers -Radio Frequency
Identification (RFID)
Computer processing or output that stimulates human reasoning or knowledge -
Answers -Artificial intelligence (AI)
A technology that stimulates human vision - Answers -Computer vision
A tool developed at the risk owner level that links specific activities, processes, projects,
or plans to a list of identified risks and results of risk analysis and evaluation and that is
ultimately consolidated at the enterprise level - Answers -Risk Register
A template depicting the likelihood and potential impact/consequences of risks -
Answers -Risk Map
Amount of risk an organization is willing to take on in order to achieve an anticipated
result or return - Answers -Risk appetite
The level of risk that would be faced if it were to remain untreated or no action were to
be taken after the level of risk - Answers -Inherent Risk
The level of risk remaining after actions are taken to alter the level of risk - Answers -
Residual Risk
The level of risk that is within an organization's risk appetite - Answers -Optimum risk
The measure of how to random risk variables will change in relationship to each other;
It's used to calculate the correlation between varibales - Answers -Covariance
The spread of the data set - or how far apart the numbers are in relation to the mean
(average) - Answers -Variance
Technique: A neutral party, who has no stake in the outcome or participation
responsibilities, administers the risk workshop and propels the group to achieve its
goals
Can be used for a specific project or process, as well as to identify those risks that
affect overall organizational objectives - Answers -Facilitated Workshops
, -Technique: Uses the opinions of select group of experts to identify risks.
-Typically, these experts don't meet but respond to a survey or inquiry instead
-Submits two rounds of queries to the selected experts
-First, each expert responds to a question and the combined answers, which remain
anonymous, are presented to the group
-The same question is then posed again to the experts, who are instructed to consider
revising their responses based on the results that were reported to the group
-This technique was originally used to forecast new developments, such as innovations
in tech - Answers -Delphi Technique
Benefits of Delphi Technique - Answers --Cost-effective because it doesn't require the
resources necessary to assemble a facilitated workshop of experts
-Keeping responses anonymous can eliminate group bias and encourage participants to
give honest answers
Disadvantage of Delphi Technique - Answers -Experts opinions may be limited to their
current thinking on a subject
Technique: Identifies risks and predicts the potential consequences of those specific
risks
Benefit: Brings all of these concerns together, so they can be addressed as a whole
Disadvantage: The risk identification process may be limited by the imagination and
brainstorming capabilities of the team selected, which could lead to overlooking key
risks or consequences of risks - Answers -Scenario Analysis
Technique: A team of subject matter experts and stakeholders identifies the risks
associated with a given process and recommends a solution
-Primary used to design complex, scientific systems such as those used in engineering,
chemical, computer ops, etc. - Answers -HAZOP
What are the steps in the HAZOP Process? - Answers -1. Subdivides the project or
system design into small components
2. Reviews each component to identify risks
3. Identifies the cause and potential outcomes for each risk
4. Develops a solution for each risk
5. Ensures that solutions work and reevaluates as necessary
Technique: Team approach that's useful in analyzing a new project or product. The
strengths and weaknesses are internal environmental factors to be considered. The
opportunities and threats are external factors
-Useful when there is a specific goal, such as determining whether engaging in a new
product or project is feasible
