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ARM 400 Assignment 1 questions with complete solutions 2024
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ARM 400 Assignment 1 questions with complete solutions 2024
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ARM 400 Assignment 1-3Traditional Risk Management (TRM) - correct answer ✔- Risks are evaluated
in a "silo" approach
- Losses are usually insurable, pure risks
-focus on cost reduction rather than value creation
-root cause analysis (RCA) approach
ERM - correct answer ✔Enterprise Risk Management
Enterprise Risk Management (ERM) - correct answer ✔a comprehensive risk
management program that addresses the organization's pure, speculative,
strategic, and operational risks
Data Capture - correct answer ✔Term for the various methods by which data
can be entered into the computer so that it can be processed.
ex. smart products, IoT
Smart Products - correct answer ✔cature and process data through sensors,
wireless sensor networks, and data collection transmission
enable item to be faster, more useful, etc
Internet of Things (IoT) - correct answer ✔a world where interconnected,
Internet-enabled devices or "things" can collect and share data without human
intervention
,Data Storage - correct answer ✔The process of updating one or more
databases with new transactions.
Cloud Computing - correct answer ✔the practice of using a network of
remote servers hosted on the Internet to store, manage, and process data,
rather than a local server or a personal computer.
vast amounts of data can be stored or shared w/o a direct server connection
Blockchain - correct answer ✔-trusted, independent source of data
-distributed digital ledger that facilitates secure transactions w/o need for a 3rd
party
-track chronology of a particular values change over time, adding a block to
the chain
-reliability depends on authority controlling access to ledger or blockchain (ie.
cryptocurrencies)
Data Mining - correct answer ✔verification process that establishes trust w/o
centralized authority
Examples of Blockchains - correct answer ✔travel and crop insurance
-cancellation or weather event creates a block in the chain that sybolizes
automatic payment to the insured, therefore lowering costs
Data Analytics - correct answer ✔allows RM professionals to better access
and analyze data to more efficiently and quickly conceive, develop, and
distribute products
Data Analytics Examples - correct answer ✔1. vehicle telematics
, 2. new data relationships
3. text mining
4. developing new products (parametric insurance)
Telematics - correct answer ✔the use of technological devices in vehicles w/
wireless communication and GPS tracking that transmit data to businesses or
gvmt agencies; some return info for the driver
Text Mining - correct answer ✔Obtaining information through language
recognition
Tolerable Uncertainty - correct answer ✔aligning risks with the organization's
risk appetite
Risk Appetite - correct answer ✔amount of risk an org is willing to take in
order to achieve an anticipated result or return
Value at Risk (VaR) - correct answer ✔The technique to measure the level of
financial risk within a firm by measuring the likelihood of losing more than a
specific amount of money over a specific period of time
Reducing Downside Risk - correct answer ✔-ex. losses and failures
-speculative risk
-business risk
-threshold limits
Speculative Risk - correct answer ✔A chance of loss, no loss, or gain.
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