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ARM 401 (Associate in Risk Management)
Exam (2 versions)includes accurate and
verified questions covering foundational risk
management topics such as risk
identification, analysis, control techniques,
risk financing, and the risk management
process. A
holistic approach to managing risk - . . ANSWER ✔ ✔-
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
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strategic risk - . . ANSWER ✔ ✔-uncertainties associated
with the organization's long-term goals and management
decisions
-may carry a greater risk dynamic, positive or negative,
that the other categories
operational risk - . . ANSWER ✔ ✔uncertainties
associated with the organization's procedures, systems,
and policies
financial risk - . . ANSWER ✔ ✔uncertainties associated
with the organization's financial activities
today's conception of risk - . . ANSWER ✔ ✔incorporates
the idea that taking risks is fundamentally necessary for
growth
predictive modeling - . . ANSWER ✔ ✔can empower
decision making by uncovering previously imperceptible
risk factors
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Internet of Things - . . ANSWER ✔ ✔network of devices
that sense their environment, process data, and share it
instantly
cloud computing - . . ANSWER ✔ ✔enables orgs to store
and share data through wireless internet and networking
services
blockchain technology - . . ANSWER ✔ ✔-facilitates
secure transactions without the need for a third party
-protects against cyber threats
-eliminates the need to verify the accuracy of risk
management data
-lets risk managers spend more time on forward-looking
functions
what fuels the future of holistic risk management? - . .
ANSWER ✔ ✔the capture, storage, and analysis of data
covariance - . . ANSWER ✔ ✔-the measure of how two
random risk variables will change in relation to each other
-calculates correlation between the variables
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variance - . . ANSWER ✔ ✔-the spread of the data set, or
how far apart the numbers are in relation to the mean
team approaches to risk identification - . . ANSWER ✔ ✔1.
facilitated workshops
2. Delphi technique
3. scenario analysis
4. HAZOP
5. SWOT
why is it important to take a team-oriented approach to
identifying risks? - . . ANSWER ✔ ✔-provide diverse
perspectives on risks
-can reveal how risks are connected across an org,
reducing the likelihood for risks to be overlooked
facilitated workshops - . . ANSWER ✔ ✔-a neutral party,
who has no stake in the outcome, administers the risk
workshop and propels the group to achieve its goal
-wise to include people from diverse groups
ARM 401 (Associate in Risk Management)
Exam (2 versions)includes accurate and
verified questions covering foundational risk
management topics such as risk
identification, analysis, control techniques,
risk financing, and the risk management
process. A
holistic approach to managing risk - . . ANSWER ✔ ✔-
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
,2|Page
strategic risk - . . ANSWER ✔ ✔-uncertainties associated
with the organization's long-term goals and management
decisions
-may carry a greater risk dynamic, positive or negative,
that the other categories
operational risk - . . ANSWER ✔ ✔uncertainties
associated with the organization's procedures, systems,
and policies
financial risk - . . ANSWER ✔ ✔uncertainties associated
with the organization's financial activities
today's conception of risk - . . ANSWER ✔ ✔incorporates
the idea that taking risks is fundamentally necessary for
growth
predictive modeling - . . ANSWER ✔ ✔can empower
decision making by uncovering previously imperceptible
risk factors
,3|Page
Internet of Things - . . ANSWER ✔ ✔network of devices
that sense their environment, process data, and share it
instantly
cloud computing - . . ANSWER ✔ ✔enables orgs to store
and share data through wireless internet and networking
services
blockchain technology - . . ANSWER ✔ ✔-facilitates
secure transactions without the need for a third party
-protects against cyber threats
-eliminates the need to verify the accuracy of risk
management data
-lets risk managers spend more time on forward-looking
functions
what fuels the future of holistic risk management? - . .
ANSWER ✔ ✔the capture, storage, and analysis of data
covariance - . . ANSWER ✔ ✔-the measure of how two
random risk variables will change in relation to each other
-calculates correlation between the variables
, 4|Page
variance - . . ANSWER ✔ ✔-the spread of the data set, or
how far apart the numbers are in relation to the mean
team approaches to risk identification - . . ANSWER ✔ ✔1.
facilitated workshops
2. Delphi technique
3. scenario analysis
4. HAZOP
5. SWOT
why is it important to take a team-oriented approach to
identifying risks? - . . ANSWER ✔ ✔-provide diverse
perspectives on risks
-can reveal how risks are connected across an org,
reducing the likelihood for risks to be overlooked
facilitated workshops - . . ANSWER ✔ ✔-a neutral party,
who has no stake in the outcome, administers the risk
workshop and propels the group to achieve its goal
-wise to include people from diverse groups
