Exam (elaborations)
ARM 54- Exam with Complete Solutions
- Course
- Institution
ARM 54- Exam with Complete Solutions
[Show more]
Content preview
ARM 54- Exam with Complete SolutionsValue at Risk Correct Ans-A threshold value such that the probability of loss on the
portfolio over the given time horizon exceeds this value, assuming normal markets and no
trading in the portfolio.
Typical Risk Management Goals Correct Ans-* Tolerable Uncertainty
* Legal and regulatory compliance
* Survival
* Business continuity
* Earning Stability
* Profitability and growth
* Social responsibility
*Economy of Risk Management Operations
Risk Management Goals: Tolerable Uncertainty Correct Ans-Aligning risks with the
organization's risk appetite
Risk Management Goals: Legal and Regulatory compliance Correct Ans-o Ensure that the
organization's legal obligations are satisfied
*Standard of care that is owed to others
*Contracts entered into by the organization
*Federal, state, provincial, territorial, and local laws and regulations
, ARM 54- Exam with Complete Solutions
Risk Management Goals: Survival Correct Ans-Identifying as many risks as possible that
could threaten the organization's ability to survive and managing those risks appropriately
Risk Management Goals: Business Continuity Correct Ans-Identifying clear, detailed
understanding of the specific operations for which continuity is essential and the maximum
tolerable interruption interval for each operation
Risk Management Goals: Earnings Stability Correct Ans-Emphasizing stability of earnings in
a given period rather than highest possible level of current profits
Risk Management Goals: Social Responsibility Correct Ans-Organization's ethical conduct
as well as the philanthropic commitments that the owners of the organization have made to
the community and society as a whole
Risk Management Goals: Economy of Risk Management Operations Correct Ans-
Organization should not incur substantial costs for slight benefits gained.
Risk Correct Ans-The possibility of loss or injury: peril
Risk ISO 31000:2009 Correct Ans-The effect of uncertainty on objectives
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TheeGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
80796 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now