ARM 54 Risk Assessment
Chapter 1
, Risk - CORRECT ANSWERS-Uncertainty about outcomes that can be either negative
or positive.
Risk Management Process - CORRECT ANSWERS-This process includes 6 steps:
1. Identify (exposures)
2. Analzye (exposures)
3. Examine (feasabilities)
4. Select (RM techniques)
5. Implement (RM techniques)
6. Monitor (RM program)
"I (decided I'm) A(n) E-SIM"
Risk Management - CORRECT ANSWERS-The process of making and implementing
decisions that will minimize the adverse effects of accidental losses on an organization.
Why continually monitor the risk management program? - CORRECT ANSWERS-
Because of changes in:
1. An organization's resources
2. An organization's activites & its resulting additional exposures to accidental loss
3. Relative costs of alternative risk management techniques
4. An organization's legal requirements
5. An organization's goals
6. The economic environment
Business Risk - CORRECT ANSWERS-Risk that is inherent in the operation of a
particular organization, including the possibility of loss, no loss OR GAIN; aka
speculative risk.
Hazard Risk - CORRECT ANSWERS-Risk from accidental loss, including the possibility
of loss and no loss; affects property, liability, personnel and net income loss exposures;
aka pure risk.
Loss Exposure - CORRECT ANSWERS-Any condition that presents a possibility of
loss, whether or not an actual loss occurs (i.e. new product lines could be met by
market acceptance & consequential financial gain, or by rejection & consequential loss).
Enterprise Risk Management - CORRECT ANSWERS-An approach to managing all of
an organization's key business risks and opportunities with the intent of MAXIMIZING
SHAREHOLDER VALUE.
Enterprise Risk Management - CORRECT ANSWERS-Some categories of Risk
included in this type of management:
1. Strategic Risk
2. Operational Risk
3. Financial Risk
Chapter 1
, Risk - CORRECT ANSWERS-Uncertainty about outcomes that can be either negative
or positive.
Risk Management Process - CORRECT ANSWERS-This process includes 6 steps:
1. Identify (exposures)
2. Analzye (exposures)
3. Examine (feasabilities)
4. Select (RM techniques)
5. Implement (RM techniques)
6. Monitor (RM program)
"I (decided I'm) A(n) E-SIM"
Risk Management - CORRECT ANSWERS-The process of making and implementing
decisions that will minimize the adverse effects of accidental losses on an organization.
Why continually monitor the risk management program? - CORRECT ANSWERS-
Because of changes in:
1. An organization's resources
2. An organization's activites & its resulting additional exposures to accidental loss
3. Relative costs of alternative risk management techniques
4. An organization's legal requirements
5. An organization's goals
6. The economic environment
Business Risk - CORRECT ANSWERS-Risk that is inherent in the operation of a
particular organization, including the possibility of loss, no loss OR GAIN; aka
speculative risk.
Hazard Risk - CORRECT ANSWERS-Risk from accidental loss, including the possibility
of loss and no loss; affects property, liability, personnel and net income loss exposures;
aka pure risk.
Loss Exposure - CORRECT ANSWERS-Any condition that presents a possibility of
loss, whether or not an actual loss occurs (i.e. new product lines could be met by
market acceptance & consequential financial gain, or by rejection & consequential loss).
Enterprise Risk Management - CORRECT ANSWERS-An approach to managing all of
an organization's key business risks and opportunities with the intent of MAXIMIZING
SHAREHOLDER VALUE.
Enterprise Risk Management - CORRECT ANSWERS-Some categories of Risk
included in this type of management:
1. Strategic Risk
2. Operational Risk
3. Financial Risk
