CPCU 500 - Managing Evolving Risks Exam Study Guide.

CPCU 500 - Managing Evolving Risks Exam Study Guide. Big Data - answerSets of data that are too large to be gathered and analyzed by traditional methods. Smart product - answerAn 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 (IoT) - answerA network of objects that transmit data to and from each other without human interaction. Cloud computing - answerInformation, technology, and storage services contractually provided from remote locations, through the internet or another network, without a direct server connection. Blockchain - answerA distributed digital ledger that facilitates secure transactions without the need for a third party. Telematics - answerThe 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 - answerObtaining information through language recognition. ©THEBRIGHT EXAM SOLUTIONS 11/05/2024 12:06 PM Insurtech - answerThe use of emerging technologies in the insurance industry. Sensor - answerA device that detects and measures stimuli in its environment. Preventive analytics - answerStatistical and analytical techniques used to influence or prevent future events or behaviors. Transducer - answerA device that converts one form of energy into another. Actuator - answerA mechanical device that turns energy into motion or otherwise effectuates a change in position or rotation using a signal and an energy source. Accelerometer - answerA device that measures acceleration, motion, and tilt. Ergonomics - answerThe science of designing work space and equipment based on the needs of the people who use the work space and equipment. Risk management framework - answerA foundation for applying the risk management process throughout the organization. Risk criteria - answerInformation used as a basis for measuring the significance of a risk. Pure risk - answerA chance of loss or no loss, but no chance of gain. Speculative risk - answerA chance of loss, no loss, or gain. Credit risk - answerThe risk that customers or other creditors will fail to make promised payments as they come due. Subjective risk - answerThe perceived amount of risk based on an individual's ©THEBRIGHT EXAM SOLUTIONS 11/05/2024 12:06 PM or organization's opinion. Objective risk - answerThe measurable variation in uncertain outcomes based on facts and data. Diversifiable risk - answerA risk that affects only some individuals, businesses, or small groups. Systemic risk - answerThe potential for a major disruption in the function of an entire market or financial system. Market risk - answerUncertainty about an investment's future value because of potential changes in the market for that type of investment. Liquidity risk - answerThe risk that an asset cannot be sold on short notice without incurring a loss. Risk appetite - answerAmount of risk an organization is willing to take on in order to achieve an anticipated result or return. Value at risk (VaR) - answerA 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 - answerThe total cost incurred by an organization because of the possibility of accidental loss. Exposure - answerAny condition that presents a possibility of gain or loss, whether or not an actual loss occurs. Volatility - answerFrequent fluctuations, such as in the price of an asset. Likelihood - answerA qualitative estimate of the certainty with which the outcome of a specific event can be predicted. Consequences - answerThe effects, positive or negative, of an occurrence.