Exam (elaborations)
ARM 401: Holistically Assessing Risk: Qs And As (A+)
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ARM 401: Holistically Assessing Risk: Qs And As (A+)
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ARM 401: Holistically Assessing Risk: Qs And As (A+)Predictive modeling Right Ans - vastly more and better data, coupled with
newer, sophisticated software tools that analyze, extrapolate, and predict
outcomes.
Covariance Right Ans - the measure of how two random risk variables will
change in relation to each other, and it's used to calculate the correlation
(linear relationship) between the variables.
Variance Right Ans - the spread of the data set—or how far apart the
numbers are in relation to the mean (average).
Facilitated Workshops Right Ans - a neutral party (the facilitator), who has
no stake in the outcome or participation responsibilities, administers the risk
workshop and propels the group to achieve its goal.
Delphi Technique Right Ans - uses the opinions of a select group of experts
to identify risks. Typically, these experts don't meet but respond to a survey
or inquiry instead.
Scenario Analysis Right Ans - identifies risks and predicts the potential
consequences of those specific risks.
- idenities scenarios if a particular risk were to occur.
HAZOP Right Ans - a comprehensive review of a process or system
- A team of subject matter experts and stakeholders identifies the risks
associated with a given process and recommends a solution.
- derived from hazard and operability study
SWOT Analysis Right Ans - team approach that's useful in analyzing a new
project or product.
- strengths and weaknesses are internal environmental factors to be
considered
- opportunities and threats are external environmental factors.
Checklists Right Ans - easy to use and communicate known risks to
employees with little effort
- a list of tasks that need accomplished
,Workshops Right Ans - format allows attendees to brainstorm and assess
risks in an open, collaborative forum
Risk register Right Ans - essentially a ledger of identified risks, which are
recorded in a table within a text document, spreadsheet, or database.
- might include dates, descriptions of each risk, the type of each risk, the
likelihood of each risk taking place, the potential severity of each risk, controls
that might be employed to counteract the risk, and the party responsible for
executing those controls.
Risk map Right Ans - a graphic diagram showing the components of the
register
- identify, prioritize, and quantify risks in a two-dimensional pictorial that
illustrates frequency and severity on vertical and horizontal axes.
Process Flow Analysis Right Ans - dissects processes within the
organization from input to output for the purpose of improving them.
Cause and Effect Analysis Right Ans - identifies the possible reasons, direct
and contributory, that caused a negative event or problem.
- combines brainstorming, communications, and mapping in an effort to find
the cause of a problem and the solution.
Fault Tree Analysis Right Ans - a process that originates with an
assumption about what caused an event or a failure.
- Working downward from the assumption (the top event), 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.
Failure Mode and Effects Analysis Right Ans - 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.
Sensor Right Ans - A device that detects and measures stimuli in its
environment.
Radio frequency identification (RFID) Right Ans - A technology that uses
radio frequency to identify objects.
, Artificial intelligence (AI) Right Ans - Computer processing or output that
simulates human reasoning or knowledge.
Computer vision Right Ans - A technology that simulates human vision.
Risk appetite Right Ans - Amount of risk an organization is willing to take
on in order to achieve an anticipated result or return.
Inherent risk Right Ans - 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 Right Ans - The level of risk remaining after actions are taken
to alter the level of risk.
Optimum risk Right Ans - The level of risk that is within an organization's
risk appetite.
Three keys to effective collaboration Right Ans - gaining a holistic
perspective, motivating workers, and contributing toward a common goal.
Qualitative analysis Right Ans - measures a risk by the significance of
consequences
- may use such ratings as high, medium, and low.
Quantitative analysis Right Ans - assigns specific values to consequences
and their probabilities to reach a numeric indication of the level of risk
Risk control Right Ans - A conscious act or decision not to act that reduces
the frequency and/or severity of losses or makes losses more predictable.
Sequence of Events (Domino Theory) Right Ans - Says these 5 factors lead
to accident or injury:
1. Ancestry and social environment, such as inherited psychological disorders
and dysfunctional social environments
2. Fault of person, such as impulsiveness, violent temper, nervousness, or a
refusal to adapt to safe practices
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