ARM 401 Chapter 8 - Part 3-Assessing Risks through Text Mining -2023/2024 Answered Questions

A company's reputation is an ethereal thing. It's an invaluable asset and yet can't be measured on a balance sheet. It can help a company get through rough times but can also be shattered without a moment's notice by the simplest of rumors. Because a good reputation can act as the pillar of a company's legitimacy, or its social license to operate, this activity should play a part in any robust risk management program: - ANSWER-Staying in front of any reputational risks that may develop via social media. Social media provides a vehicle for any message to be instantaneously: - ANSWER-Multiplied, expanded on, and communicated to millions of people. A single negative item of information, whether patently false, true, misinterpreted, or taken out of context, can reverse: - ANSWER-A company's positive image, and severely damage its reputation almost immediately. For example, when 60 people suffered from an E. coli outbreak at Chipotle restaurants in 2015, the company's sales dropped 36% in the aftermath of the outbreak. Meanwhile, in 1992 and before the advent of social media, a similar outbreak at Jack in the Box restaurants affected 500 people and resulted in 4 deaths, yet: - ANSWER-Sales dropped only about 22%. Examples of online resources for text mining initiatives regarding popular opinion of a company include: - ANSWER-Social media sites such as Twitter, Facebook, and LinkedIn, as well as discussion boards and news aggregation sites. The analysis of large amounts of data to find new relationships and patterns that will assist in developing business solutions, is called: - ANSWER-Data mining. The risk that negative publicity, whether true or not, will damage a company's reputation and its ability to operate its business, is called: - ANSWER-Reputational risk. Obtaining information through language recognition, is called: - ANSWER-Text mining. A collection of writings or documents, is called: - ANSWER-Corpus. The process of determining the opinion or emotion behind a selection of text, is called: - ANSWER-Sentiment analysis.