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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. Aligned with The Institutes' curriculum, this exam prepares candidates for professional certification in enterprise risk management.
Version 1 Which one of the following types of risk analysis uses historical data to assign specific values to consequences and their probabilities to reach a numeric indication of the level of risk? - ANSWER-Quantitative analysis
From a system safety perspective, change analysis is an analysis
- ANSWER-That projects the effects a given system change is
likely to have on an existing system
A worker for Build-Rite Construction Company removed the pressure gauge and warning sticker from an air compressor. The pressure gauge automatically shuts off the compressor when the pressure gets too high. The sticker warned that an explosion could result if the pressure was too high. Without the pressure 1 / 4
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gauge in place, the air compressor exploded. The explosion killed one worker and severely injured another. If Build-Rite performs a root cause analysis (RCA) of this fatal accident, which one of the following might be determined to be a root cause? - ANSWER-Inadequate training
Using fault tree analysis, an "and" gate is connecting the events in rectangles C, D, and E to the event in rectangle A. If the probabilities of events in rectangles C, D, and E of the fault tree are .10, .20, and .30, respectively, what is the probability that the event in rectangle A will occur? - ANSWER-.006 ----- (p(C) X p(D) X p(E); .10 X .20 X .30 = .006
A phase in the life of a system when the basic purpose and preliminary design of the system are formulated is the - ANSWER-Conceptual phase
Within a system safety context, the engineering phase of a system's life cycle is that phase in which - ANSWER-The system's design is constructed and prototypes are tested.
One form of root cause analysis utilizes a fishbone diagram.Under this technique, a team of investigators brainstorms the causes of a risk event, sorts them into categories, and traces 2 / 4
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them to their origin. This type of analysis relies heavily on a - ANSWER-"5 Whys" analysis.
The second step in the root cause analysis (RCA) process is charting the agents that directly result in one event triggering another event. In RCA, these agents are called - ANSWER- Causal factors
Harris Company is analyzing its workers compensation loss exposure. Harris Company retains most of the exposure and purchases excess insurance to cap its liability on any individual claim. Because Harris Company has a large work force, it can predict its workers compensation cost with some level of accuracy. For next year, the risk manager estimates that there is a 70% chance that workers compensation costs will be $6 million or less, a 25% chance workers compensation costs will be between $6 million and $8 million, and a 5% chance workers compensation costs will exceed $8 million. The type of analysis the risk manager performed is called - ANSWER-Quantitative analysis
Vicki has been hired to investigate industrial accidents 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 3 / 4
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safety analysis technique would be most appropriate for this application? - ANSWER-Fault tree analysis
An approach to accident causation, which looks at an organization as a whole to identify potential sources of losses is
- ANSWER-System safety analysis
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 - ANSWER-Indenture levels
After a metal pressing machine crushed an employee's arm, the risk manager of Metal Fab Company called a meeting. Those present at the meeting included the company's safety manager, the plant foreman, the part-time mechanic in charge of maintenance of the machine, the co-worker who taught the injured worker to use the machine, and the plant manager who purchased the machine two years ago. After completely
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