ARM 400 COMPREHENSIVE QUESTIONS AND
CORRECT ANSWERS
◉ Smart Product.
Answer: An innovative item that uses sensors' wireless sensor
networks; and date collection, transmission and analysis to further
enable the item to be faster, more useful and otherwise improved.
◉ Internet of Things (IoT).
Answer: A network of objects that transmit data to and from each
other without human interaction
◉ Cloud Computing.
Answer: Information, technology, and storage services contractually
provided from remote locations, through the internet or another
network, without a direct server connection.
◉ Blockchain.
Answer: A distributed digital ledger that facilitates secure
transaction without the need of the third party
◉ Telematics.
,Answer: The use of technological devices in vehicles with wireless
communication and GPS tracking that transmits data to a business
or government agency; some return info to the driver.
◉ Text Mining.
Answer: Obtaining information through language recognition
◉ Risk Appetite.
Answer: Amount of rick an organization is willing to take on in order
to achieve an anticipated result or return
◉ Value at Risk (VaR).
Answer: A technique to quantify financial risk by measuring the
likelihood of losing more than a specific dollar amount over a
specific period of time
◉ Cost of Risk.
Answer: The total cost incurred by an organization because of the
possibility of accidental loss
◉ Exposure.
Answer: Any condition that presents a possibility of gain or loss,
whether or not an actual loss occurs
,◉ Volatility.
Answer: Frequent fluctuations, such as in the price of an asset
◉ Likelihood.
Answer: A qualitative estimate of the certainty with which the
outcome of a specific event can be predicted
◉ Consequences.
Answer: The effects, positive or negative, of an occurrence
◉ Time Hosizon.
Answer: Estimated duration
◉ Correlation.
Answer: A relationship between variable
◉ Pure Risk.
Answer: A chance of loss or no loss, but no chance of gain
◉ Speculative Risk.
Answer: A chance of loss, no loss or gain
, ◉ Credit Risk.
Answer: The risk that customers or other creditors will fail to make
promised payments as they come due
◉ Subjective Risk.
Answer: The perceived amount of risk based on an individual's or
organizations opinion
◉ Objective Risk.
Answer: The measurable variation in uncertain outcomes based on
facts and data
◉ Diversifiable Risk.
Answer: A risk that affects only some individuals, businesses or
small groups
◉ Systemic Risk.
Answer: The potential for a major disruption in the function of an
entire market or financial system
◉ Market Risk.
Answer: Uncertainty about an investment's future value because of
potential chances in the market for that type of investment
CORRECT ANSWERS
◉ Smart Product.
Answer: An innovative item that uses sensors' wireless sensor
networks; and date collection, transmission and analysis to further
enable the item to be faster, more useful and otherwise improved.
◉ Internet of Things (IoT).
Answer: A network of objects that transmit data to and from each
other without human interaction
◉ Cloud Computing.
Answer: Information, technology, and storage services contractually
provided from remote locations, through the internet or another
network, without a direct server connection.
◉ Blockchain.
Answer: A distributed digital ledger that facilitates secure
transaction without the need of the third party
◉ Telematics.
,Answer: The use of technological devices in vehicles with wireless
communication and GPS tracking that transmits data to a business
or government agency; some return info to the driver.
◉ Text Mining.
Answer: Obtaining information through language recognition
◉ Risk Appetite.
Answer: Amount of rick an organization is willing to take on in order
to achieve an anticipated result or return
◉ Value at Risk (VaR).
Answer: A technique to quantify financial risk by measuring the
likelihood of losing more than a specific dollar amount over a
specific period of time
◉ Cost of Risk.
Answer: The total cost incurred by an organization because of the
possibility of accidental loss
◉ Exposure.
Answer: Any condition that presents a possibility of gain or loss,
whether or not an actual loss occurs
,◉ Volatility.
Answer: Frequent fluctuations, such as in the price of an asset
◉ Likelihood.
Answer: A qualitative estimate of the certainty with which the
outcome of a specific event can be predicted
◉ Consequences.
Answer: The effects, positive or negative, of an occurrence
◉ Time Hosizon.
Answer: Estimated duration
◉ Correlation.
Answer: A relationship between variable
◉ Pure Risk.
Answer: A chance of loss or no loss, but no chance of gain
◉ Speculative Risk.
Answer: A chance of loss, no loss or gain
, ◉ Credit Risk.
Answer: The risk that customers or other creditors will fail to make
promised payments as they come due
◉ Subjective Risk.
Answer: The perceived amount of risk based on an individual's or
organizations opinion
◉ Objective Risk.
Answer: The measurable variation in uncertain outcomes based on
facts and data
◉ Diversifiable Risk.
Answer: A risk that affects only some individuals, businesses or
small groups
◉ Systemic Risk.
Answer: The potential for a major disruption in the function of an
entire market or financial system
◉ Market Risk.
Answer: Uncertainty about an investment's future value because of
potential chances in the market for that type of investment
