ARM 400 - Assignment 1: The Changing
Risk Environment
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, transmission, and analysis to
further enable the item to be faster, more useful, or otherwise improved.
Internet of Things - 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 for the driver.
Text Mining - correct answer ✔Obtaining information through language
recognition
Risk Appetite - correct answer ✔Amount of risk the organization or function
is willing to pursue or accept to attain its goals.
, 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 ✔The total cost incurred by an organization
because of the possibility of accidental loss.
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 the certainty with
which the outcome of a specific event can be predicted.
Consequences - correct answer ✔The effects, positive or negative, of an
occurrence.
Time Horizon - correct answer ✔Estimated duration
Correlation - correct answer ✔A relationship between variables
Pure Risk - correct answer ✔A chance of loss or no loss, but no chance of
gain.
Speculative Risk - correct answer ✔A chance of loss, no loss, or gain.
Risk Environment
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, transmission, and analysis to
further enable the item to be faster, more useful, or otherwise improved.
Internet of Things - 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 for the driver.
Text Mining - correct answer ✔Obtaining information through language
recognition
Risk Appetite - correct answer ✔Amount of risk the organization or function
is willing to pursue or accept to attain its goals.
, 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 ✔The total cost incurred by an organization
because of the possibility of accidental loss.
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 the certainty with
which the outcome of a specific event can be predicted.
Consequences - correct answer ✔The effects, positive or negative, of an
occurrence.
Time Horizon - correct answer ✔Estimated duration
Correlation - correct answer ✔A relationship between variables
Pure Risk - correct answer ✔A chance of loss or no loss, but no chance of
gain.
Speculative Risk - correct answer ✔A chance of loss, no loss, or gain.
