ARM 401 Exam Practice 428 REAL EXAM QUESTIONS WITH 100%
ACCURATE ANSWERS 100% VERIFIED GUARANTEED PASS GET A+
A risk map showing a large difference between inherent and residual risk indicates which one of
the following?
A. The risk is within the organization's risk appetite
B. The current risk treatment is ineffective
C. The current risk treatment is effective
D. The risk does not need to be treated - (ANSWER)C
Lucas, a risk professional for Jones Incorporated, recently met with experts from the utility
industry to discuss the potential loss of supply and risks to the infrastructure. Lucas must now
decide which risks, and proposed treatments, need to be communicated to the board of Jones
Incorporated. Lucas should make 心的坚强决定了我们的命运。当
this decision based on
A. The supply source involved. 我们面对挫折时，是一颗不屈的
B. The organization's risk appetite心让我们勇敢前行
and tolerance levels.
C. Whether the risk in natural or man-made.
D. Whether any government regulations are involved or not. - (ANSWER)B
SoCal Movie Company produces movies at a studio in Southern California. The risk manager
decided to identify the range of potential consequences associated with various risks that the
company faces. For example, if a severe earthquake occurred while the company was filming a
movie, there could be deaths and injuries, destruction of movie sets, delays in production, costs
associated with filming at an alternative location, and loss of reputation and good will. The type
of analysis performed by the risk manager is called
A. SWOT analysis.
B. Scenario analysis.
C. Sensitivity analysis.
D. HAZOP analysis. - (ANSWER)B
,Insurance Company (IC) sells its coverages through independent insurance agents. Independent
agents represent several insurance companies. Tom, the president of IC, has learned that the
independent agent who is the highest producer for IC is considering selling his agency. IC is
considering acquiring the agency since Tom is concerned that if the agency is sold, IC may lose a
substantial amount of business. Tom asked IC's risk manager to analyze the prospective
purchase. The analysis revealed that the acquisition would likely secure most of IC's book of
business with the agency but also revealed local competitors that would try to place the business
as well. In addition, the analysis revealed the opportunity for IC to move some accounts
currently placed with other insurers over to IC. Also, it was learned that a competitor expressed
an interest in the agency acquisition. The analysis performed by the risk manager is a -
(ANSWER)D
Murray Trucking is interested in evaluating which risk factors are most likely to lead to the most
costly accidents. They are evaluating risk factors such as speed, weather conditions, driver
experience, distance traveled, and gross vehicle weight. Which one of the following statistical
measurements would be useful for the risk manager when calculating the probability of the
different risk factors causing severe accidents?
心的坚强决定了我们的命运。当
A. Telematics
我们面对挫折时，是一颗不屈的
B. Inverse covariance
心让我们勇敢前行
C. Variance
D. Monte Carlo simulation - (ANSWER)C
Blithe Manufacturing has experienced a drop in market share. The marketing department has
come up with a way to differentiate their product in order to regain market share. Blithe has
assembled a team of individuals representing different organizational functions to analyze both
internal and external factors of the new product and decide whether or not it is feasible. Which
one of the following team approaches to risk identification is Blithe using?
A. Delphi technique
B. HAZOP workshop
C. SWOT analysis
D. Scenario analysis - (ANSWER)C
,William is a project manager for Parker International. He has been assigned a key project with a
short deadline. William realizes that this project is going to require revising the job duties of
some individuals and a collaborative effort from of all team members. When revising job duties,
William should do which one of the following?
A. Overload some individuals with more work than others
B. Try to enrich individuals' work rather than merely expand it
C. Rely on the most senior individuals to take on additional duties
D. Focus on the individuals' personality rather than results - (ANSWER)B
Shelton Manufacturing executives are growing increasingly concerned about wildfires and the
potential effects on supply chain management. As the risk professional, Carla has been asked to
meet with experts on the subject and report back to the executive team. Which one of the
following should Carla do before meeting with external wildfire experts?
A. Carla should speak with internal subject-matter experts in hopes that she can avoid needing
the external wildfire experts. 心的坚强决定了我们的命运。当
B. Carla should research the field 我们面对挫折时，是一颗不屈的
and get a working understanding of wildfires.
C. Carla should solicit questions from internal experts and submit them to the external wildfire
心让我们勇敢前行
experts.
D. Carla should try to learn as much as possible about wildfires, so she can impress the wildfire
experts. - (ANSWER)B
An organization practicing holistic risk management would assess the cost of raw materials and
foreign exchange risk under which one of the following quadrants of risk?
A. Strategic risk
B. Financial risk
C. Operational risk
D. Hazard risk - (ANSWER)B
Risk maps differ from other risk assessment tools and techniques in which one of the following
ways?
, A. Risk maps dissect processes within the organization from input to output for the purpose of
improving them.
B. Risk maps identify, prioritize, and quantify risks in a two-dimensional pictorial that illustrates
frequency and severity on vertical and horizontal axes.
C. Risk maps have the potential to identify both negative risks and opportunity risks.
D. Risk maps are able to quickly explore a vast number of possible outcomes based on large
datasets. - (ANSWER)B
As a best practice, a risk register should be an interactive computer system. Which one of the
following individuals should be responsible for continually updating risk information?
A. Customer
B. Risk management professional
C. Risk owner
D. Chief executive officer - (ANSWER)C
心的坚强决定了我们的命运。当
我们面对挫折时，是一颗不屈的
A tool developed at the risk owner心让我们勇敢前行
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 is called a
A. Risk report.
B. Risk map.
C. Risk matrix.
D. Risk register. - (ANSWER)D
Which one of the following risk assessment tools has the potential to identify both negative risks
and opportunity risks?
A. Risk maps
B. Audits
C. Cause and effect analysis
D. Failure mode and effects analysis - (ANSWER)B
ACCURATE ANSWERS 100% VERIFIED GUARANTEED PASS GET A+
A risk map showing a large difference between inherent and residual risk indicates which one of
the following?
A. The risk is within the organization's risk appetite
B. The current risk treatment is ineffective
C. The current risk treatment is effective
D. The risk does not need to be treated - (ANSWER)C
Lucas, a risk professional for Jones Incorporated, recently met with experts from the utility
industry to discuss the potential loss of supply and risks to the infrastructure. Lucas must now
decide which risks, and proposed treatments, need to be communicated to the board of Jones
Incorporated. Lucas should make 心的坚强决定了我们的命运。当
this decision based on
A. The supply source involved. 我们面对挫折时，是一颗不屈的
B. The organization's risk appetite心让我们勇敢前行
and tolerance levels.
C. Whether the risk in natural or man-made.
D. Whether any government regulations are involved or not. - (ANSWER)B
SoCal Movie Company produces movies at a studio in Southern California. The risk manager
decided to identify the range of potential consequences associated with various risks that the
company faces. For example, if a severe earthquake occurred while the company was filming a
movie, there could be deaths and injuries, destruction of movie sets, delays in production, costs
associated with filming at an alternative location, and loss of reputation and good will. The type
of analysis performed by the risk manager is called
A. SWOT analysis.
B. Scenario analysis.
C. Sensitivity analysis.
D. HAZOP analysis. - (ANSWER)B
,Insurance Company (IC) sells its coverages through independent insurance agents. Independent
agents represent several insurance companies. Tom, the president of IC, has learned that the
independent agent who is the highest producer for IC is considering selling his agency. IC is
considering acquiring the agency since Tom is concerned that if the agency is sold, IC may lose a
substantial amount of business. Tom asked IC's risk manager to analyze the prospective
purchase. The analysis revealed that the acquisition would likely secure most of IC's book of
business with the agency but also revealed local competitors that would try to place the business
as well. In addition, the analysis revealed the opportunity for IC to move some accounts
currently placed with other insurers over to IC. Also, it was learned that a competitor expressed
an interest in the agency acquisition. The analysis performed by the risk manager is a -
(ANSWER)D
Murray Trucking is interested in evaluating which risk factors are most likely to lead to the most
costly accidents. They are evaluating risk factors such as speed, weather conditions, driver
experience, distance traveled, and gross vehicle weight. Which one of the following statistical
measurements would be useful for the risk manager when calculating the probability of the
different risk factors causing severe accidents?
心的坚强决定了我们的命运。当
A. Telematics
我们面对挫折时，是一颗不屈的
B. Inverse covariance
心让我们勇敢前行
C. Variance
D. Monte Carlo simulation - (ANSWER)C
Blithe Manufacturing has experienced a drop in market share. The marketing department has
come up with a way to differentiate their product in order to regain market share. Blithe has
assembled a team of individuals representing different organizational functions to analyze both
internal and external factors of the new product and decide whether or not it is feasible. Which
one of the following team approaches to risk identification is Blithe using?
A. Delphi technique
B. HAZOP workshop
C. SWOT analysis
D. Scenario analysis - (ANSWER)C
,William is a project manager for Parker International. He has been assigned a key project with a
short deadline. William realizes that this project is going to require revising the job duties of
some individuals and a collaborative effort from of all team members. When revising job duties,
William should do which one of the following?
A. Overload some individuals with more work than others
B. Try to enrich individuals' work rather than merely expand it
C. Rely on the most senior individuals to take on additional duties
D. Focus on the individuals' personality rather than results - (ANSWER)B
Shelton Manufacturing executives are growing increasingly concerned about wildfires and the
potential effects on supply chain management. As the risk professional, Carla has been asked to
meet with experts on the subject and report back to the executive team. Which one of the
following should Carla do before meeting with external wildfire experts?
A. Carla should speak with internal subject-matter experts in hopes that she can avoid needing
the external wildfire experts. 心的坚强决定了我们的命运。当
B. Carla should research the field 我们面对挫折时，是一颗不屈的
and get a working understanding of wildfires.
C. Carla should solicit questions from internal experts and submit them to the external wildfire
心让我们勇敢前行
experts.
D. Carla should try to learn as much as possible about wildfires, so she can impress the wildfire
experts. - (ANSWER)B
An organization practicing holistic risk management would assess the cost of raw materials and
foreign exchange risk under which one of the following quadrants of risk?
A. Strategic risk
B. Financial risk
C. Operational risk
D. Hazard risk - (ANSWER)B
Risk maps differ from other risk assessment tools and techniques in which one of the following
ways?
, A. Risk maps dissect processes within the organization from input to output for the purpose of
improving them.
B. Risk maps identify, prioritize, and quantify risks in a two-dimensional pictorial that illustrates
frequency and severity on vertical and horizontal axes.
C. Risk maps have the potential to identify both negative risks and opportunity risks.
D. Risk maps are able to quickly explore a vast number of possible outcomes based on large
datasets. - (ANSWER)B
As a best practice, a risk register should be an interactive computer system. Which one of the
following individuals should be responsible for continually updating risk information?
A. Customer
B. Risk management professional
C. Risk owner
D. Chief executive officer - (ANSWER)C
心的坚强决定了我们的命运。当
我们面对挫折时，是一颗不屈的
A tool developed at the risk owner心让我们勇敢前行
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 is called a
A. Risk report.
B. Risk map.
C. Risk matrix.
D. Risk register. - (ANSWER)D
Which one of the following risk assessment tools has the potential to identify both negative risks
and opportunity risks?
A. Risk maps
B. Audits
C. Cause and effect analysis
D. Failure mode and effects analysis - (ANSWER)B
