ARM 401 Practice Exam UPDATED ACTUAL Questions and CORRECT
Answers
1. Risk maps differ from other risk assessment tools and Risk maps identify, prior-
techniques in which one of the following ways? itize, and quantify risks in
a two-dimensional pictori-
al that illustrates frequency
and severity on vertical and
horizontal axes.
2. Vicki has been hired to investigate industrial accidents Fault tree analysis
for a biotech company that produces a number of
drugs. In most cases, she will be asked to look at a
particular system failure and trace the events leading
to the failure backwards. Which system safety analysis
technique would be most appropriate for this applica-
tion?
3. The important first step in a decision-making model is Define the problem
to
4. Modifying the contact surface or basic structure that ny believes
can be affected by installing breakaway highway light that $50
poles or requiring front and side airbags in automo- million is the
biles to cushion occupants' impact is a basic strategy appropriate
of the capital
5. Degree, closeness, and betweeness all fall into which
one of the following categories?
6. A risk management professional should ensure that
an organizational risk register has which one of the
following characteristics?
7. The chief financial officer of XYZ Insurance Compa-
,Energy transfer theory
Centrality Measures
Provides interactive use forrisk owners
8.00%
, charge for the company's underwriting division. The
division is predicted to generate revenue of $25 million
this year and expenses of $22 million. Assuming a
risk-free rate of 2% on the capital charge, what is this
division's return on capital (ROC)?
8. Which one of the following occurs when individuals, Collaboration
departments, or teams from different areas work to-
gether to accomplish a shared organizational goal?
9. A phase in the life of a system when the basic purpose Conceptual phase
and preliminary design of the system are formulated
is the
10. The unauthorized intrusion into a company's comput- Intangible Property
er network resulting in damage to intellectual property
is best classified as which one of the following types of
cyber liability exposures?
11. Data analytics is especially useful for unstructured data
12. One of the ways in which probabilities can be devel- The number of times
oped is theoretically. Which one of the following is heads can be expected to
an example of an event for which probability can be turn up over multiple coin
determined theoretically? tosses
13. James is the risk manager for a large manufacturing Organizational risk regis-
organization with six locations. Each location has a ter
plant manager who is responsible for the operation of
that location. James feels that the plant managers are
in the best position to identify and measure risk at their
locations. He wants them to own the risk. However, he
is looking for a tool that will allow him to prioritize risk
Answers
1. Risk maps differ from other risk assessment tools and Risk maps identify, prior-
techniques in which one of the following ways? itize, and quantify risks in
a two-dimensional pictori-
al that illustrates frequency
and severity on vertical and
horizontal axes.
2. Vicki has been hired to investigate industrial accidents Fault tree analysis
for a biotech company that produces a number of
drugs. In most cases, she will be asked to look at a
particular system failure and trace the events leading
to the failure backwards. Which system safety analysis
technique would be most appropriate for this applica-
tion?
3. The important first step in a decision-making model is Define the problem
to
4. Modifying the contact surface or basic structure that ny believes
can be affected by installing breakaway highway light that $50
poles or requiring front and side airbags in automo- million is the
biles to cushion occupants' impact is a basic strategy appropriate
of the capital
5. Degree, closeness, and betweeness all fall into which
one of the following categories?
6. A risk management professional should ensure that
an organizational risk register has which one of the
following characteristics?
7. The chief financial officer of XYZ Insurance Compa-
,Energy transfer theory
Centrality Measures
Provides interactive use forrisk owners
8.00%
, charge for the company's underwriting division. The
division is predicted to generate revenue of $25 million
this year and expenses of $22 million. Assuming a
risk-free rate of 2% on the capital charge, what is this
division's return on capital (ROC)?
8. Which one of the following occurs when individuals, Collaboration
departments, or teams from different areas work to-
gether to accomplish a shared organizational goal?
9. A phase in the life of a system when the basic purpose Conceptual phase
and preliminary design of the system are formulated
is the
10. The unauthorized intrusion into a company's comput- Intangible Property
er network resulting in damage to intellectual property
is best classified as which one of the following types of
cyber liability exposures?
11. Data analytics is especially useful for unstructured data
12. One of the ways in which probabilities can be devel- The number of times
oped is theoretically. Which one of the following is heads can be expected to
an example of an event for which probability can be turn up over multiple coin
determined theoretically? tosses
13. James is the risk manager for a large manufacturing Organizational risk regis-
organization with six locations. Each location has a ter
plant manager who is responsible for the operation of
that location. James feels that the plant managers are
in the best position to identify and measure risk at their
locations. He wants them to own the risk. However, he
is looking for a tool that will allow him to prioritize risk
