ARM 400 Exam Questions with Complete Answers (Latest 2023)

What two things lie at the base of every risk management concept Correct Answer the intersection of different types of risk A method for identifying, assessing, and treating all risks Traditional risk assessment techniques focus on what Correct Answer root cause analysis - which identifies a loss's predominant cause What is wrong with Root Cause Analyses Correct Answer it can only look backward and might not catch all root causes What are the 3 steps in how big data transforms RM Correct Answer data capture Data storage Data analytics What enables data capture Correct Answer smart products - uses sensors and data collection/transmission in order to be more useful What allows a vast amount of data to be stored and shared Correct Answer cloud computing 4 ways insurers use data to provide better results/decisions Correct Answer organizing large volumes of new data Discovering new relationships in data Exploring new sources of data Developing new products What is text mining Correct Answer obtaining information through language recognition What is Value at Risk Correct 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 What is one way organizations reduce downside risk Correct Answer threshold limits - basically management is alerted once established risk criteria triggers are hit How does risk management align with organizational objectives Correct Answer intelligent, strategic risk taking Identification and management of cross enterprise risks Improved capital allocation