ARM 400 UPDATED REVIEW EXAMS QUESTIONS
AND ANSWERS SURE A+
✔✔Frequent fluctuations, such as in the price of an asset. - ✔✔volatility
✔✔A qualitative estimate of the certainty with which the outcome of a specific even can
be predicted. - ✔✔likelihood
✔✔The effects, positive or negative, of an occurrence - ✔✔consequences
✔✔Estimated duration. - ✔✔time horizon
✔✔A relationship between variables. - ✔✔correlation
✔✔A chance of loss or no loss, but no chance of gain. - ✔✔pure risk
✔✔A chance of loss, no loss, or gain. - ✔✔speculative risk
✔✔The risk that customers or other creditors will fail to make promised payments as
they come due. - ✔✔credit risk
, ✔✔The perceived amount of risk based on an individual's or organization's opinion. -
✔✔subjective risk
✔✔The measurable variation in uncertain outcomes based on facts and data. -
✔✔objective risk
✔✔A risk that affects only some individuals, businesses, or small groups. -
✔✔diversifiable risk
✔✔The potential for a major disruption in the function of an entire market or financial
system. - ✔✔systemic risk
✔✔Uncertainty about investments future value because of potential changes in the
market for that type of investment. - ✔✔market risk
✔✔The risk that an asset cannot be sold on short notice without incurring loss. -
✔✔liquidity risk
✔✔A foundation for applying the risk management process throughout the organization.
- ✔✔risk management framework
✔✔Information used as a basis for measuring the significance of a risk. - ✔✔risk criteria
✔✔A system or process that an organization uses to achieve its operational goals,
internal and external financial reporting goals, or legal and regulatory compliance goals.
- ✔✔internal control
✔✔The use of emerging technologies in the insurance industry - ✔✔insurtech
✔✔An innovative item that uses sensors; wireless sensor networks; and data collection,
transmission, and analysis to further enable the item to be faster, more useful, or
otherwise improved - ✔✔smart product
✔✔A network of objects that transmit data to and from each other without human
interaction - ✔✔internet of things
✔✔A device that detects and measures stimuli in its environment - ✔✔sensor
✔✔Statistical and analytical techniques used to influence or prevent future events or
behaviors - ✔✔preventative analytics
✔✔A device that converts one form of energy into anothe - ✔✔transducer
AND ANSWERS SURE A+
✔✔Frequent fluctuations, such as in the price of an asset. - ✔✔volatility
✔✔A qualitative estimate of the certainty with which the outcome of a specific even can
be predicted. - ✔✔likelihood
✔✔The effects, positive or negative, of an occurrence - ✔✔consequences
✔✔Estimated duration. - ✔✔time horizon
✔✔A relationship between variables. - ✔✔correlation
✔✔A chance of loss or no loss, but no chance of gain. - ✔✔pure risk
✔✔A chance of loss, no loss, or gain. - ✔✔speculative risk
✔✔The risk that customers or other creditors will fail to make promised payments as
they come due. - ✔✔credit risk
, ✔✔The perceived amount of risk based on an individual's or organization's opinion. -
✔✔subjective risk
✔✔The measurable variation in uncertain outcomes based on facts and data. -
✔✔objective risk
✔✔A risk that affects only some individuals, businesses, or small groups. -
✔✔diversifiable risk
✔✔The potential for a major disruption in the function of an entire market or financial
system. - ✔✔systemic risk
✔✔Uncertainty about investments future value because of potential changes in the
market for that type of investment. - ✔✔market risk
✔✔The risk that an asset cannot be sold on short notice without incurring loss. -
✔✔liquidity risk
✔✔A foundation for applying the risk management process throughout the organization.
- ✔✔risk management framework
✔✔Information used as a basis for measuring the significance of a risk. - ✔✔risk criteria
✔✔A system or process that an organization uses to achieve its operational goals,
internal and external financial reporting goals, or legal and regulatory compliance goals.
- ✔✔internal control
✔✔The use of emerging technologies in the insurance industry - ✔✔insurtech
✔✔An innovative item that uses sensors; wireless sensor networks; and data collection,
transmission, and analysis to further enable the item to be faster, more useful, or
otherwise improved - ✔✔smart product
✔✔A network of objects that transmit data to and from each other without human
interaction - ✔✔internet of things
✔✔A device that detects and measures stimuli in its environment - ✔✔sensor
✔✔Statistical and analytical techniques used to influence or prevent future events or
behaviors - ✔✔preventative analytics
✔✔A device that converts one form of energy into anothe - ✔✔transducer
