ARM 54- Exam with Complete Solutions
Value at Risk Correct Ans-A threshold value such that the probability of loss on the
portfolio over the given time horizon exceeds this value, assuming normal markets and no
trading in the portfolio.
Typical Risk Management Goals Correct Ans-* Tolerable Uncertainty
* Legal and regulatory compliance
* Survival
* Business continuity
* Earning Stability
* Profitability and growth
* Social responsibility
*Economy of Risk Management Operations
Risk Management Goals: Tolerable Uncertainty Correct Ans-Aligning risks with the
organization's risk appetite
Risk Management Goals: Legal and Regulatory compliance Correct Ans-o Ensure that the
organization's legal obligations are satisfied
*Standard of care that is owed to others
*Contracts entered into by the organization
*Federal, state, provincial, territorial, and local laws and regulations
, ARM 54- Exam with Complete Solutions
Risk Management Goals: Survival Correct Ans-Identifying as many risks as possible that
could threaten the organization's ability to survive and managing those risks appropriately
Risk Management Goals: Business Continuity Correct Ans-Identifying clear, detailed
understanding of the specific operations for which continuity is essential and the maximum
tolerable interruption interval for each operation
Risk Management Goals: Earnings Stability Correct Ans-Emphasizing stability of earnings in
a given period rather than highest possible level of current profits
Risk Management Goals: Social Responsibility Correct Ans-Organization's ethical conduct
as well as the philanthropic commitments that the owners of the organization have made to
the community and society as a whole
Risk Management Goals: Economy of Risk Management Operations Correct Ans-
Organization should not incur substantial costs for slight benefits gained.
Risk Correct Ans-The possibility of loss or injury: peril
Risk ISO 31000:2009 Correct Ans-The effect of uncertainty on objectives
Value at Risk Correct Ans-A threshold value such that the probability of loss on the
portfolio over the given time horizon exceeds this value, assuming normal markets and no
trading in the portfolio.
Typical Risk Management Goals Correct Ans-* Tolerable Uncertainty
* Legal and regulatory compliance
* Survival
* Business continuity
* Earning Stability
* Profitability and growth
* Social responsibility
*Economy of Risk Management Operations
Risk Management Goals: Tolerable Uncertainty Correct Ans-Aligning risks with the
organization's risk appetite
Risk Management Goals: Legal and Regulatory compliance Correct Ans-o Ensure that the
organization's legal obligations are satisfied
*Standard of care that is owed to others
*Contracts entered into by the organization
*Federal, state, provincial, territorial, and local laws and regulations
, ARM 54- Exam with Complete Solutions
Risk Management Goals: Survival Correct Ans-Identifying as many risks as possible that
could threaten the organization's ability to survive and managing those risks appropriately
Risk Management Goals: Business Continuity Correct Ans-Identifying clear, detailed
understanding of the specific operations for which continuity is essential and the maximum
tolerable interruption interval for each operation
Risk Management Goals: Earnings Stability Correct Ans-Emphasizing stability of earnings in
a given period rather than highest possible level of current profits
Risk Management Goals: Social Responsibility Correct Ans-Organization's ethical conduct
as well as the philanthropic commitments that the owners of the organization have made to
the community and society as a whole
Risk Management Goals: Economy of Risk Management Operations Correct Ans-
Organization should not incur substantial costs for slight benefits gained.
Risk Correct Ans-The possibility of loss or injury: peril
Risk ISO 31000:2009 Correct Ans-The effect of uncertainty on objectives
