ARM 400 - Risk in an Evolving World
Big Data - correct answer ✔Sets of data that are too large to be gathered
and analyzed by traditional methods
Smart Product - correct answer ✔An innovative item that uses sensors;
wireless sensor networks; and data collection and transmission and analysis
to further enable the item to be faster, more useful and otherwise improved
Internet of Things (IoT) - correct answer ✔A network of objects that transmit
data to and from each other without human interaction
Cloud Computing - correct answer ✔Information, technology and storage
services contractually provided from remote locations, through the Internet or
another network, without a direct server connection
Blockchain - correct answer ✔A distributed digital ledger that facilitates
secure transactions without the need for a third party
Telematics - correct answer ✔The use of technological devices in vehicles
with wireless communication and GPS tracking that transmit data to
businesses or government agencies; some return information to the driver
Text Mining - correct answer ✔Obtaining information through language
recognition
Risk Appetite - correct answer ✔Amount of risk an organization is willing to
take on in order to achieve an anticipated result or return
, Value at Risk (VaR) - 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
Cost of Risk - correct answer ✔Total cost incurred by an organization
because of the probability of accidental loss
Tolerable Uncertainty - correct answer ✔Aligning risks with the organization's
risk appetite
Downside Risk - correct answer ✔Includes delays, errors, cost increases,
and the failure of any aspect of the operation
Hedging - correct answer ✔Risk management technique used to manage
downside risk resulting from market volatility
Earnings Stability - correct answer ✔Requires precise forecasting of
fluctuations in asset values, liability values, and risk management costs
Exposure - correct answer ✔Any condition that presents a possibility of gain
or loss, whether or not an actual loss occurs.
Volatility - correct answer ✔Frequent fluctuations, such as in the price of an
asset.
Likelihood - correct answer ✔A qualitative estimate of certainty with which
the outcome of a specific event can be predicted
Big Data - correct answer ✔Sets of data that are too large to be gathered
and analyzed by traditional methods
Smart Product - correct answer ✔An innovative item that uses sensors;
wireless sensor networks; and data collection and transmission and analysis
to further enable the item to be faster, more useful and otherwise improved
Internet of Things (IoT) - correct answer ✔A network of objects that transmit
data to and from each other without human interaction
Cloud Computing - correct answer ✔Information, technology and storage
services contractually provided from remote locations, through the Internet or
another network, without a direct server connection
Blockchain - correct answer ✔A distributed digital ledger that facilitates
secure transactions without the need for a third party
Telematics - correct answer ✔The use of technological devices in vehicles
with wireless communication and GPS tracking that transmit data to
businesses or government agencies; some return information to the driver
Text Mining - correct answer ✔Obtaining information through language
recognition
Risk Appetite - correct answer ✔Amount of risk an organization is willing to
take on in order to achieve an anticipated result or return
, Value at Risk (VaR) - 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
Cost of Risk - correct answer ✔Total cost incurred by an organization
because of the probability of accidental loss
Tolerable Uncertainty - correct answer ✔Aligning risks with the organization's
risk appetite
Downside Risk - correct answer ✔Includes delays, errors, cost increases,
and the failure of any aspect of the operation
Hedging - correct answer ✔Risk management technique used to manage
downside risk resulting from market volatility
Earnings Stability - correct answer ✔Requires precise forecasting of
fluctuations in asset values, liability values, and risk management costs
Exposure - correct answer ✔Any condition that presents a possibility of gain
or loss, whether or not an actual loss occurs.
Volatility - correct answer ✔Frequent fluctuations, such as in the price of an
asset.
Likelihood - correct answer ✔A qualitative estimate of certainty with which
the outcome of a specific event can be predicted
