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ARM 401 Holistically Assessing Risk 2025 Exam
Prep Test Banks 1, 2 & 3 with 600 Questions and
Correct Answers / ARM 401 Exam Prep Qs and As
Risk threshold - ...ANSWER...✓✓ The range or amount of
risk that is acceptable.
Sensor - ...ANSWER...✓✓ A device that detects and
measures stimuli in its environment.
Radio frequency identification (RFID) - ...ANSWER...✓✓ A
technology that uses radio frequency to identify objects.
Artificial intelligence (AI) - ...ANSWER...✓✓ Computer
processing or output that simulates human reasoning or
knowledge.
Computer vision - ...ANSWER...✓✓ A technology that
simulates human vision.
Risk register - ...ANSWER...✓✓ A tool developed at the
risk owner level that links specific activities, processes,
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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.
Risk map - ...ANSWER...✓✓ A template depicting the
likelihood and potential impact/consequences of risks.
Risk appetite - ...ANSWER...✓✓ Amount of risk an
organization is willing to take on in order to achieve an
anticipated result or return.
Inherent risk - ...ANSWER...✓✓ 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.
Residual risk - ...ANSWER...✓✓ The level of risk
remaining after actions are taken to alter the level of risk.
Optimum risk - ...ANSWER...✓✓ The level of risk that is
within an organization's risk appetite.
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Risk control - ...ANSWER...✓✓ A conscious act or
decision not to act that reduces the frequency and/or
severity of losses or makes losses more predictable.
Energy transfer theory - ...ANSWER...✓✓ 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.
Technique of operations review (TOR) - ...ANSWER...✓✓
An approach to accident causation that views the cause of
accidents to be a result of management's shortcomings.
Change analysis - ...ANSWER...✓✓ An analysis that
projects the effects a given system change is likely to
have on an existing system.
Job safety analysis (JSA) - ...ANSWER...✓✓ An analysis
that dissects a repetitive task, whether performed by a
person or machine, to determine potential hazards if each
action is not performed.
ARM 401 Holistically Assessing Risk 2025 Exam
Prep Test Banks 1, 2 & 3 with 600 Questions and
Correct Answers / ARM 401 Exam Prep Qs and As
Risk threshold - ...ANSWER...✓✓ The range or amount of
risk that is acceptable.
Sensor - ...ANSWER...✓✓ A device that detects and
measures stimuli in its environment.
Radio frequency identification (RFID) - ...ANSWER...✓✓ A
technology that uses radio frequency to identify objects.
Artificial intelligence (AI) - ...ANSWER...✓✓ Computer
processing or output that simulates human reasoning or
knowledge.
Computer vision - ...ANSWER...✓✓ A technology that
simulates human vision.
Risk register - ...ANSWER...✓✓ A tool developed at the
risk owner level that links specific activities, processes,
,2|Page
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.
Risk map - ...ANSWER...✓✓ A template depicting the
likelihood and potential impact/consequences of risks.
Risk appetite - ...ANSWER...✓✓ Amount of risk an
organization is willing to take on in order to achieve an
anticipated result or return.
Inherent risk - ...ANSWER...✓✓ 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.
Residual risk - ...ANSWER...✓✓ The level of risk
remaining after actions are taken to alter the level of risk.
Optimum risk - ...ANSWER...✓✓ The level of risk that is
within an organization's risk appetite.
, 3|Page
Risk control - ...ANSWER...✓✓ A conscious act or
decision not to act that reduces the frequency and/or
severity of losses or makes losses more predictable.
Energy transfer theory - ...ANSWER...✓✓ 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.
Technique of operations review (TOR) - ...ANSWER...✓✓
An approach to accident causation that views the cause of
accidents to be a result of management's shortcomings.
Change analysis - ...ANSWER...✓✓ An analysis that
projects the effects a given system change is likely to
have on an existing system.
Job safety analysis (JSA) - ...ANSWER...✓✓ An analysis
that dissects a repetitive task, whether performed by a
person or machine, to determine potential hazards if each
action is not performed.
