ARM 401 Questions And Answers
1. strategic risk: uncertainties associated with the organizations long term goals
and management decisions
2. operational risk: uncertainties associated with the organizations procedures,
systems, and policies
3. financial risk: uncertainties associated with the organizations financial activities
4. facilitated workshops: a neutral party, who has no stake int he outcome or
participation responsibilities, administers the risk workshop and propels the group
to achieve its goal
5. delphi technique: uses opinions of a select group of experts to identify risks
6. scenario analysis: identifies risks and predicts the potential consequences of
those specific risks
7. HAZOP: a team of subject matter experts and stakeholders identifies the risks
associated with a given process and recommends a solution
primarily used to design complex, scientific systems such as those used in engineer-
ing, chemical, mechanical, electronic, and computer operations.
8. SWOT analysis: strengths, weaknesses, opportunities, and threats
this is a team approach thats useful in analyzing a new project or product
9. risk threshold: the range or amount of risk that is acceptable
10. sensor: a device that detects and measures stimuli in its environment
11. radio frequency identification (RFID): a technology that uses radio frequency
to identify objects
12. artificial intelligence: computer process or output that stimulates human rea-
soning or knowledge
13. computer vision: a technology that simulates human vision
14. risk register: a tool developed at the risk owner level that links specific activities,
processes, projects, or plans to a list of identified risks and results of risk analysis
and evaluation and that is ultimately consolidated at the enterprise level
15. risk map: a template depicting the likelihood and potential impact/conse-
quences of risk
identify, prioritize, and quantify risks in a two dimensional pictorial that illustrates
frequency and severity on vertical and horizontal axes
16. process flow analysis: dissects processes within the organization from input to
output for the purpose of improving them
17. audits: internal and external audits have the potential to identify both negative
risks and opportunity risks
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, ARM 401 Questions And Answers
18. cause and effect analysis: identifies the possible reasons, direct and contrib-
utory, that caused a negative event or problem by looking backwards through a
defective process
19. fault tree analysis: a process that originates with an assumption about what
caused an event or failure
working downward from the assumption, a diagram is used to connect the factors
that caused the failure and determine how to devise methods to prevent similar
failures in the future
20. failure mode and effect analysis: uses a team of individuals to examine a
process and identify potential failures at each step in the process, as well as the
consequences of each failure. when failures are identified, designs and processes
can be modified.
21. risk appetite: amount of risk an organization is willing to take on in order to
achieve an anticipated result or return
22. inherent risk: the level of risk that would be faced if it were to remain untreated
or no action were to be taken to alter the level of risk
23. residual risk: the level of risk remaining after actions are taken to alter the level
of risk
24. optimum risk: the level of risk that is within and organization's risk appetite
25. risk control: a conscious act or decision not to act that reduces the frequency
and/or severity of losses or makes losses more predictable
26. sequence of events theory: proposes that these five factors can form a chain
of events that lead in succession to the resulting accident
1. ancestry and social environment
2. faults of a person
3. an unsafe act and/or a mechanical or physical hazard
4. the accident itself
5. the resulting injury
27. energy transfer theory: an approach to accident causation that views accidents
as energy that is released and that affects objects, including living things, in amounts
or at rates that the objects cannot tolerate
28. technique of operations review (TOR): an approach to accident causation that
views the cause of accidents to be a result of management's shortcomings
29. change analysis: an analysis that projects the effects a given system change
is likely to have on an existing system
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1. strategic risk: uncertainties associated with the organizations long term goals
and management decisions
2. operational risk: uncertainties associated with the organizations procedures,
systems, and policies
3. financial risk: uncertainties associated with the organizations financial activities
4. facilitated workshops: a neutral party, who has no stake int he outcome or
participation responsibilities, administers the risk workshop and propels the group
to achieve its goal
5. delphi technique: uses opinions of a select group of experts to identify risks
6. scenario analysis: identifies risks and predicts the potential consequences of
those specific risks
7. HAZOP: a team of subject matter experts and stakeholders identifies the risks
associated with a given process and recommends a solution
primarily used to design complex, scientific systems such as those used in engineer-
ing, chemical, mechanical, electronic, and computer operations.
8. SWOT analysis: strengths, weaknesses, opportunities, and threats
this is a team approach thats useful in analyzing a new project or product
9. risk threshold: the range or amount of risk that is acceptable
10. sensor: a device that detects and measures stimuli in its environment
11. radio frequency identification (RFID): a technology that uses radio frequency
to identify objects
12. artificial intelligence: computer process or output that stimulates human rea-
soning or knowledge
13. computer vision: a technology that simulates human vision
14. risk register: a tool developed at the risk owner level that links specific activities,
processes, projects, or plans to a list of identified risks and results of risk analysis
and evaluation and that is ultimately consolidated at the enterprise level
15. risk map: a template depicting the likelihood and potential impact/conse-
quences of risk
identify, prioritize, and quantify risks in a two dimensional pictorial that illustrates
frequency and severity on vertical and horizontal axes
16. process flow analysis: dissects processes within the organization from input to
output for the purpose of improving them
17. audits: internal and external audits have the potential to identify both negative
risks and opportunity risks
\
, ARM 401 Questions And Answers
18. cause and effect analysis: identifies the possible reasons, direct and contrib-
utory, that caused a negative event or problem by looking backwards through a
defective process
19. fault tree analysis: a process that originates with an assumption about what
caused an event or failure
working downward from the assumption, a diagram is used to connect the factors
that caused the failure and determine how to devise methods to prevent similar
failures in the future
20. failure mode and effect analysis: uses a team of individuals to examine a
process and identify potential failures at each step in the process, as well as the
consequences of each failure. when failures are identified, designs and processes
can be modified.
21. risk appetite: amount of risk an organization is willing to take on in order to
achieve an anticipated result or return
22. inherent risk: the level of risk that would be faced if it were to remain untreated
or no action were to be taken to alter the level of risk
23. residual risk: the level of risk remaining after actions are taken to alter the level
of risk
24. optimum risk: the level of risk that is within and organization's risk appetite
25. risk control: a conscious act or decision not to act that reduces the frequency
and/or severity of losses or makes losses more predictable
26. sequence of events theory: proposes that these five factors can form a chain
of events that lead in succession to the resulting accident
1. ancestry and social environment
2. faults of a person
3. an unsafe act and/or a mechanical or physical hazard
4. the accident itself
5. the resulting injury
27. energy transfer theory: an approach to accident causation that views accidents
as energy that is released and that affects objects, including living things, in amounts
or at rates that the objects cannot tolerate
28. technique of operations review (TOR): an approach to accident causation that
views the cause of accidents to be a result of management's shortcomings
29. change analysis: an analysis that projects the effects a given system change
is likely to have on an existing system
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