ARM 400 - Risk in Evolving World
Big Data - Answer-Sets of data that are too large to be gathered and analyzed by traditional methods.
Smart Product - 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 (IoT) - Answer-A network of objects that transmit data to and from each other
without human interaction.
Cloud Computing - Answer-Information, technology, and storage services contractually provided from
remote locations, through the internet or another network, without a direct server connection.
Blockchain - Answer-A distributed digital ledger that facilitates secure transactions without the need for
a third party.
Telematics - 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 - Answer-Obtaining information through language recognition.
Risk Appetite - Answer-Amount of risk an organization is willing to take on in order to achieve an
anticipated result or return.
, Value at Risk (VaR) - 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 - Answer-The total cost incurred by an organization because of the possibility of accidental
loss.
Exposure - Answer-Any condition that presents a possibility of gain or loss, whether or not an actual loss
occurs.
Volitility - Answer-Frequent fluctuations, such as in the price of an asset.
Likelihood - Answer-A qualitative estimate of the certainty with which the outcome of a specific event
can be predicted.
Consequences - Answer-The effects, positive or negative, of an occurrence.
Time Horizon - Answer-Estimated duration.
Correlation - Answer-A relationship between variables.
Pure Risk - Answer-A chance of loss or no loss, but no chance of gain.
Speculative Risk - Answer-A chance of loss, no loss, or gain.
Credit Risk - Answer-The risk that customers or other creditors will fail to make promised payments as
they come due.
Big Data - Answer-Sets of data that are too large to be gathered and analyzed by traditional methods.
Smart Product - 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 (IoT) - Answer-A network of objects that transmit data to and from each other
without human interaction.
Cloud Computing - Answer-Information, technology, and storage services contractually provided from
remote locations, through the internet or another network, without a direct server connection.
Blockchain - Answer-A distributed digital ledger that facilitates secure transactions without the need for
a third party.
Telematics - 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 - Answer-Obtaining information through language recognition.
Risk Appetite - Answer-Amount of risk an organization is willing to take on in order to achieve an
anticipated result or return.
, Value at Risk (VaR) - 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 - Answer-The total cost incurred by an organization because of the possibility of accidental
loss.
Exposure - Answer-Any condition that presents a possibility of gain or loss, whether or not an actual loss
occurs.
Volitility - Answer-Frequent fluctuations, such as in the price of an asset.
Likelihood - Answer-A qualitative estimate of the certainty with which the outcome of a specific event
can be predicted.
Consequences - Answer-The effects, positive or negative, of an occurrence.
Time Horizon - Answer-Estimated duration.
Correlation - Answer-A relationship between variables.
Pure Risk - Answer-A chance of loss or no loss, but no chance of gain.
Speculative Risk - Answer-A chance of loss, no loss, or gain.
Credit Risk - Answer-The risk that customers or other creditors will fail to make promised payments as
they come due.
