ARM 54 Segment A- Test Questions and Answers 100%
Solved
Dodd-Frank Act Correct Ans-Financial bank holding and other public companies to have a
risk committee and at least one member must be a RM expert.
What regulations/acts have the purpose of reducing system risk? Correct Ans-Dodd-Frank
Act, Solvency II and Basel III
Subjective risk is based upon Correct Ans-Opinion rather than fact
A standard is... Correct Ans-A means of determinig what something should be.
What is the major distinction between COSO ERM and ISO 31100? Correct Ans-ISO
definition of "the effect of uncertainity of objectives" reflects a more recent thinking about
risk, which contemplates the potential for positive and adverse results.
Difference between Basel II and Basel III Correct Ans-Basel III is a set of reform measures
to strengthen the regulation, supervision and RM of the banking sector.
Types of loss exposure Correct Ans-Property loss exposure
Liability loss exposure
Personnel loss exposure
Net income loss exposure
, ARM 54 Segment A- Test Questions and Answers 100%
Solved
What was missing with Basel I? Correct Ans-Calcs of risk adjusted assets did not take in to
account changes in the risk of assets or systemic risk.
Two types of pure risk Correct Ans-Hazard
Operational
Systemic risk is reduced via Correct Ans-Dodd Frank Act
Solvency II
Basel II
Basic measures that apply to risk management Correct Ans-Exposure
Volatility
Likelihood
Consequences
Time Horizon
Correlation
Quadrants of risk Correct Ans-Hazard
Operational
Financial
Solved
Dodd-Frank Act Correct Ans-Financial bank holding and other public companies to have a
risk committee and at least one member must be a RM expert.
What regulations/acts have the purpose of reducing system risk? Correct Ans-Dodd-Frank
Act, Solvency II and Basel III
Subjective risk is based upon Correct Ans-Opinion rather than fact
A standard is... Correct Ans-A means of determinig what something should be.
What is the major distinction between COSO ERM and ISO 31100? Correct Ans-ISO
definition of "the effect of uncertainity of objectives" reflects a more recent thinking about
risk, which contemplates the potential for positive and adverse results.
Difference between Basel II and Basel III Correct Ans-Basel III is a set of reform measures
to strengthen the regulation, supervision and RM of the banking sector.
Types of loss exposure Correct Ans-Property loss exposure
Liability loss exposure
Personnel loss exposure
Net income loss exposure
, ARM 54 Segment A- Test Questions and Answers 100%
Solved
What was missing with Basel I? Correct Ans-Calcs of risk adjusted assets did not take in to
account changes in the risk of assets or systemic risk.
Two types of pure risk Correct Ans-Hazard
Operational
Systemic risk is reduced via Correct Ans-Dodd Frank Act
Solvency II
Basel II
Basic measures that apply to risk management Correct Ans-Exposure
Volatility
Likelihood
Consequences
Time Horizon
Correlation
Quadrants of risk Correct Ans-Hazard
Operational
Financial
