ARM 401 MISCELLANEOUS QUESTIONS
B. Indenture levels - Answers -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
delivery vans, etc.). In FMEA, these various systems and subsystems are called
A. Critical levels.
B. Indenture levels.
C. Complexity levels.
D. Risk priority levels.
A. One way of presenting a continuous probability distribution is to divide the distribution
into a countable number of bins. - Answers -Which one of the following statements is
correct with respect to continuous probability distributions?
A. One way of presenting a continuous probability distribution is to divide the distribution
into a countable number of bins.
B. There are a finite number of possible outcomes in a continuous probability
distribution.
C. They are typically used for loss frequency analysis rather than severity analysis.
D. They are most effectively illustrated using tables and pie charts.
B. To perpetuate a competent board through regular elections - Answers -Which one of
the following is a major responsibility of corporate directors?
A. To manage investments and disbursements of the corporation's assets
B. To perpetuate a competent board through regular elections
C. To establish the procedures and operational goals for each department
D. To create the proper annual and interim reports for shareholders
D. The risk treatment opportunity to further reduce risk. - Answers -The risk
management department at Computer Hardware Company uses risk maps to graph and
analyze the risks faced by the company. One area of special concern to the risk
management team is the difference between residual risk and optimum risk. This
difference represents
A. The risk that cannot be altered and is retained by the firm.
B. The potential risk that the organization does not currently face, but could face if
conditions change
C. The risk that is handled, by default, through avoidance.
D. The risk treatment opportunity to further reduce risk.
A. Purpose. - Answers -Decision tree analysis and event tree analysis are similar in a
number of ways, but differ in their
A. Purpose.
, B. Process.
C. Appearance.
D. Approach.
A. The Delphi technique. - Answers -After a month in which three employees were
seriously injured at company paper mills, Ashley, the risk manager of Bright White
Paper Company, wanted some answers about the causes of employee injuries. Ashley
independently contacted the plant manager and foreman at each of the company's
plants. She asked each person to complete a confidential questionnaire regarding
safety procedures. After receiving the responses to the questionnaire, Ashley
summarized the results and asked the same questions again instructing each person to
consider revising their responses based on the initial questionnaire results. The analysis
revealed that new workers were not being properly trained and that a lax attitude toward
safety was present at the majority of the plants. The team approach to risk identification
Ashley employed is called
A. The Delphi technique.
B. Scenario analysis.
C. SWOT analysis.
D. HAZOP analysis
D. Because of their security, blockchains can eliminate the need to verify the accuracy
of risk management data. - Answers -Which one of the following is a major benefit that
blockchain technology provides to holistic risk management?
A. Blockchain technology allows organizations to share data through wireless internet
and networking services.
B. Blockchain technology can monitor driving habits by measuring acceleration, speed,
braking, and distance traveled.
C. Blockchains can monitor things such as heat, moisture, noise, and air quality.
D. Because of their security, blockchains can eliminate the need to verify the accuracy
of risk management data.
C. Identify the various ways of interrupting the sequence of events leading to system
failure so that the failure itself can be prevented. - Answers -The purpose of fault tree
analysis is to
A. Project consequences of some failure of a system component.
B. Quantify the probability of each possibility identified in the analysis.
C. Identify the various ways of interrupting the sequence of events leading to system
failure so that the failure itself can be prevented.
D. Provide an opportunity to discover and correct any defects in a product or process
while it is still in its early engineering phases.
D. Closeness - Answers -Tom, the regional manager at Westfork Mutual, has planned
a community service day for all employees. He has asked his two assistant managers,
Julian and Leah, to spread the word to other employees and encourage them to attend.
Based on centrality measures of the company's email traffic, Tom is confident that
Julian will spread the word to more employees more quickly through email than will
B. Indenture levels - Answers -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
delivery vans, etc.). In FMEA, these various systems and subsystems are called
A. Critical levels.
B. Indenture levels.
C. Complexity levels.
D. Risk priority levels.
A. One way of presenting a continuous probability distribution is to divide the distribution
into a countable number of bins. - Answers -Which one of the following statements is
correct with respect to continuous probability distributions?
A. One way of presenting a continuous probability distribution is to divide the distribution
into a countable number of bins.
B. There are a finite number of possible outcomes in a continuous probability
distribution.
C. They are typically used for loss frequency analysis rather than severity analysis.
D. They are most effectively illustrated using tables and pie charts.
B. To perpetuate a competent board through regular elections - Answers -Which one of
the following is a major responsibility of corporate directors?
A. To manage investments and disbursements of the corporation's assets
B. To perpetuate a competent board through regular elections
C. To establish the procedures and operational goals for each department
D. To create the proper annual and interim reports for shareholders
D. The risk treatment opportunity to further reduce risk. - Answers -The risk
management department at Computer Hardware Company uses risk maps to graph and
analyze the risks faced by the company. One area of special concern to the risk
management team is the difference between residual risk and optimum risk. This
difference represents
A. The risk that cannot be altered and is retained by the firm.
B. The potential risk that the organization does not currently face, but could face if
conditions change
C. The risk that is handled, by default, through avoidance.
D. The risk treatment opportunity to further reduce risk.
A. Purpose. - Answers -Decision tree analysis and event tree analysis are similar in a
number of ways, but differ in their
A. Purpose.
, B. Process.
C. Appearance.
D. Approach.
A. The Delphi technique. - Answers -After a month in which three employees were
seriously injured at company paper mills, Ashley, the risk manager of Bright White
Paper Company, wanted some answers about the causes of employee injuries. Ashley
independently contacted the plant manager and foreman at each of the company's
plants. She asked each person to complete a confidential questionnaire regarding
safety procedures. After receiving the responses to the questionnaire, Ashley
summarized the results and asked the same questions again instructing each person to
consider revising their responses based on the initial questionnaire results. The analysis
revealed that new workers were not being properly trained and that a lax attitude toward
safety was present at the majority of the plants. The team approach to risk identification
Ashley employed is called
A. The Delphi technique.
B. Scenario analysis.
C. SWOT analysis.
D. HAZOP analysis
D. Because of their security, blockchains can eliminate the need to verify the accuracy
of risk management data. - Answers -Which one of the following is a major benefit that
blockchain technology provides to holistic risk management?
A. Blockchain technology allows organizations to share data through wireless internet
and networking services.
B. Blockchain technology can monitor driving habits by measuring acceleration, speed,
braking, and distance traveled.
C. Blockchains can monitor things such as heat, moisture, noise, and air quality.
D. Because of their security, blockchains can eliminate the need to verify the accuracy
of risk management data.
C. Identify the various ways of interrupting the sequence of events leading to system
failure so that the failure itself can be prevented. - Answers -The purpose of fault tree
analysis is to
A. Project consequences of some failure of a system component.
B. Quantify the probability of each possibility identified in the analysis.
C. Identify the various ways of interrupting the sequence of events leading to system
failure so that the failure itself can be prevented.
D. Provide an opportunity to discover and correct any defects in a product or process
while it is still in its early engineering phases.
D. Closeness - Answers -Tom, the regional manager at Westfork Mutual, has planned
a community service day for all employees. He has asked his two assistant managers,
Julian and Leah, to spread the word to other employees and encourage them to attend.
Based on centrality measures of the company's email traffic, Tom is confident that
Julian will spread the word to more employees more quickly through email than will
