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ARM 401 EXAM PRACTICE RATED 100%
CORRECT
Question 1: Risk maps differ from other risk assessment tools
and techniques in which one of the following ways?
CORRECT ANSWER : Risk maps identify, prioritize, and
quantify risks in a two-dimensional pictorial that illustrates frequency and severity on vertical and horizontal axes.
Question 2: 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 safety analysis technique would be most appropriate for this application?
CORRECT ANSWER : Fault tree analysis
Question 3: The important first step in a decision-making model
is to
CORRECT ANSWER : Define the problem
Question 4: Modifying the contact surface or basic structure that
can be affected by installing breakaway highway light poles or
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requiring front and side airbags in automobiles to cushion occupants' impact is a basic strategy of the
CORRECT ANSWER : Energy transfer theory
Question 5: Degree, closeness, and betweeness all fall into
which one of the following categories?
CORRECT ANSWER : Centrality Measures
Question 6: A risk management professional should ensure that
an organizational risk register has which one of the following characteristics?
CORRECT ANSWER : Provides interactive use for risk owners
Question 7: The chief financial officer of XYZ Insurance
Company believes that $50 million is the appropriate capital 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)?
CORRECT ANSWER : 8.00%
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Question 8: Which one of the following occurs when
individuals, departments, or teams from different areas work together to accomplish a shared organizational goal?
CORRECT ANSWER: Collaboration
Question 9: A phase in the life of a system when the basic
purpose and preliminary design of the system are formulated is the
CORRECT ANSWER : Conceptual phase
Question 10: The unauthorized intrusion into a company's
computer network resulting in damage to intellectual property is best classified as which one of the following types of cyber liability exposures?
CORRECT ANSWER : Intangible Property
Question 11: Data analytics is especially useful for
CORRECT ANSWER : unstructured data
Question 12: One of the ways in which probabilities can be
developed is theoretically. Which one of the following is an
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example of an event for which probability can be determined theoretically?
CORRECT ANSWER : The number of times heads can be
expected to turn up over multiple coin tosses
Question 13: James is the risk manager for a large
manufacturing organization with six locations. Each location has a 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 according to the potential effect on the organization. James wants an interactive tool that will adequately identify the organization's risks, and allow them to be measured based on likelihood and the level of risk to the organization. Which one of the following is the most appropriate tool for James?
CORRECT ANSWER : Organizational risk register
Question 14: Economic capital attempts to quantify the various
risks faced by an organization. One such risk is loss of value because of not properly matching asset and liability cash flows.This risk is called