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ARM 400 Assignment 1-3 Questions with Detailed
Verified Answers
Traditional Risk Management (TRM) Ans: ✓ ✓ ✓ - Risks are evaluated in a "silo" approach
- Losses are usually insurable, pure risks
-focus on cost reduction rather than value creation
-root cause analysis (RCA) approach
ERM Ans: ✓ ✓ ✓ Enterprise Risk Management
Enterprise Risk Management (ERM) Ans: ✓ ✓ ✓ a comprehensive risk management program that
addresses the organization's pure, speculative, strategic, and operational risks
Data Capture Ans: ✓ ✓ ✓ Term for the various methods by which data can be entered into the
computer so that it can be processed.
ex. smart products, IoT
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Smart Products Ans: ✓ ✓ ✓ cature and process data through sensors, wireless sensor networks,
and data collection transmission
enable item to be faster, more useful, etc
Internet of Things (IoT) Ans: ✓ ✓ ✓ a world where interconnected, Internet-enabled devices or
"things" can collect and share data without human intervention
Data Storage Ans: ✓ ✓ ✓ The process of updating one or more databases with new transactions.
Cloud Computing Ans: ✓ ✓ ✓ the practice of using a network of remote servers hosted on the
Internet to store, manage, and process data, rather than a local server or a personal computer.
vast amounts of data can be stored or shared w/o a direct server connection
Blockchain Ans: ✓ ✓ ✓ -trusted, independent source of data
-distributed digital ledger that facilitates secure transactions w/o need for a 3rd party
-track chronology of a particular values change over time, adding a block to the chain
-reliability depends on authority controlling access to ledger or blockchain (ie. cryptocurrencies)
Data Mining Ans: ✓ ✓ ✓ verification process that establishes trust w/o centralized authority
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Examples of Blockchains Ans: ✓ ✓ ✓ travel and crop insurance
-cancellation or weather event creates a block in the chain that sybolizes automatic payment to the
insured, therefore lowering costs
Data Analytics Ans: ✓ ✓ ✓ allows RM professionals to better access and analyze data to more
efficiently and quickly conceive, develop, and distribute products
Data Analytics Examples Ans: ✓ ✓ ✓ 1. vehicle telematics
2. new data relationships
3. text mining
4. developing new products (parametric insurance)
Telematics Ans: ✓ ✓ ✓ the use of technological devices in vehicles w/ wireless communication and
GPS tracking that transmit data to businesses or gvmt agencies; some return info for the driver
Text Mining Ans: ✓ ✓ ✓ Obtaining information through language recognition
Tolerable Uncertainty Ans: ✓ ✓ ✓ aligning risks with the organization's risk appetite
Risk Appetite Ans: ✓ ✓ ✓ amount of risk an org is willing to take in order to achieve an anticipated
result or return
Value at Risk (VaR) Ans: ✓ ✓ ✓ The technique to measure the level of financial risk within a firm by
measuring the likelihood of losing more than a specific amount of money over a specific period of
time
© Get it right 2025 Getaway - Stuvia US All rights reserved
ARM 400 Assignment 1-3 Questions with Detailed
Verified Answers
Traditional Risk Management (TRM) Ans: ✓ ✓ ✓ - Risks are evaluated in a "silo" approach
- Losses are usually insurable, pure risks
-focus on cost reduction rather than value creation
-root cause analysis (RCA) approach
ERM Ans: ✓ ✓ ✓ Enterprise Risk Management
Enterprise Risk Management (ERM) Ans: ✓ ✓ ✓ a comprehensive risk management program that
addresses the organization's pure, speculative, strategic, and operational risks
Data Capture Ans: ✓ ✓ ✓ Term for the various methods by which data can be entered into the
computer so that it can be processed.
ex. smart products, IoT
© Get it right 2025 Getaway - Stuvia US All rights reserved
,Click here for more: Scholars nexus
Smart Products Ans: ✓ ✓ ✓ cature and process data through sensors, wireless sensor networks,
and data collection transmission
enable item to be faster, more useful, etc
Internet of Things (IoT) Ans: ✓ ✓ ✓ a world where interconnected, Internet-enabled devices or
"things" can collect and share data without human intervention
Data Storage Ans: ✓ ✓ ✓ The process of updating one or more databases with new transactions.
Cloud Computing Ans: ✓ ✓ ✓ the practice of using a network of remote servers hosted on the
Internet to store, manage, and process data, rather than a local server or a personal computer.
vast amounts of data can be stored or shared w/o a direct server connection
Blockchain Ans: ✓ ✓ ✓ -trusted, independent source of data
-distributed digital ledger that facilitates secure transactions w/o need for a 3rd party
-track chronology of a particular values change over time, adding a block to the chain
-reliability depends on authority controlling access to ledger or blockchain (ie. cryptocurrencies)
Data Mining Ans: ✓ ✓ ✓ verification process that establishes trust w/o centralized authority
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
Examples of Blockchains Ans: ✓ ✓ ✓ travel and crop insurance
-cancellation or weather event creates a block in the chain that sybolizes automatic payment to the
insured, therefore lowering costs
Data Analytics Ans: ✓ ✓ ✓ allows RM professionals to better access and analyze data to more
efficiently and quickly conceive, develop, and distribute products
Data Analytics Examples Ans: ✓ ✓ ✓ 1. vehicle telematics
2. new data relationships
3. text mining
4. developing new products (parametric insurance)
Telematics Ans: ✓ ✓ ✓ the use of technological devices in vehicles w/ wireless communication and
GPS tracking that transmit data to businesses or gvmt agencies; some return info for the driver
Text Mining Ans: ✓ ✓ ✓ Obtaining information through language recognition
Tolerable Uncertainty Ans: ✓ ✓ ✓ aligning risks with the organization's risk appetite
Risk Appetite Ans: ✓ ✓ ✓ amount of risk an org is willing to take in order to achieve an anticipated
result or return
Value at Risk (VaR) Ans: ✓ ✓ ✓ The technique to measure the level of financial risk within a firm by
measuring the likelihood of losing more than a specific amount of money over a specific period of
time
© Get it right 2025 Getaway - Stuvia US All rights reserved
