ARM - Associate in Risk Management Risk Identification and Analysis Questions and Answers

Question 1

A risk manager is using a risk analysis technique that starts with a top-level event (e.g., system failure) and deductively works backward to identify all the potential underlying causes.
This technique uses logic gates like 'AND' and 'OR' to model the relationships between events.
Which risk analysis technique is being used?

Accepted Answer

Fault Tree Analysis (FTA)

Answer

Event Tree Analysis (ETA)

Answer

Bow-Tie Analysis

Answer

SWOT Analysis

Question 2

A manufacturing company is conducting a comprehensive risk identification process. The risk management team decides to analyze the company's internal capabilities, such as its skilled workforce and proprietary technology, as well as external factors like new market entrants and changing regulations. Which of the following identification tools is best suited for this type of analysis?

Accepted Answer

SWOT Analysis

Answer

Checklists and Questionnaires

Answer

Incident Analysis

Answer

Process Flow Analysis

Question 3

Which of the following is a key characteristic of Event Tree Analysis (ETA)?

Accepted Answer

It graphically represents the consequences of a single initiating event.

Answer

It is a 'top-down' deductive approach.

Answer

It primarily focuses on identifying the root causes of a past event.

Answer

It combines the causes and consequences of an event in one diagram.

Question 4

A risk manager for an airline wants to create a single, comprehensive diagram to visualize a specific high-consequence risk, such as an engine failure. The diagram should show the potential causes (threats) on the left, the critical event in the center, and the potential consequences on the right, along with the preventative and mitigating controls. Which analysis method would be most appropriate?

Accepted Answer

Bow-Tie Analysis

Answer

Fault Tree Analysis (FTA)

Answer

Root Cause Analysis (RCA)

Answer

Failure Mode and Effects Analysis (FMEA)

Question 5

A project team is creating a risk register for an upcoming software development project. Which of the following pieces of information is LEAST likely to be included for each identified risk in the initial risk register?

Accepted Answer

The detailed, step-by-step mitigation plan.

Answer

A description of the risk.

Answer

The probability and potential impact of the risk.

Answer

The name of the assigned risk owner.

Question 6

A risk manager at a chemical processing plant needs to analyze the potential outcomes following a specific initiating event, such as a valve failure. The goal is to understand the sequence of events and the effectiveness of safety barriers in preventing a major incident. The analysis should proceed forward in time from the initial failure. Which technique is most suitable for this purpose?

Accepted Answer

Event Tree Analysis (ETA)

Answer

SWOT Analysis

Answer

Fault Tree Analysis (FTA)

Answer

Brainstorming