ARM 400 Assignment 1-3 Exam
Questions and Answers 100% Pass
Traditional Risk Management (TRM) - ✔✔- 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 - ✔✔Enterprise Risk Management
Enterprise Risk Management (ERM) - ✔✔a comprehensive risk
management program that addresses the organization's pure, speculative,
strategic, and operational risks
Data Capture - ✔✔Term for the various methods by which data can be
entered into the computer so that it can be processed.
1
100% Pass Guarantee Katelyn Whitman, All Rights
,ex. smart products, IoT
Smart Products - ✔✔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) - ✔✔a world where interconnected, Internet-
enabled devices or "things" can collect and share data without human
intervention
Data Storage - ✔✔The process of updating one or more databases with new
transactions.
Cloud Computing - ✔✔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.
2
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,vast amounts of data can be stored or shared w/o a direct server
connection
Blockchain - ✔✔-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 - ✔✔verification process that establishes trust w/o centralized
authority
Examples of Blockchains - ✔✔travel and crop insurance
-cancellation or weather event creates a block in the chain that sybolizes
automatic payment to the insured, therefore lowering costs
3
100% Pass Guarantee Katelyn Whitman, All Rights
, Data Analytics - ✔✔allows RM professionals to better access and analyze
data to more efficiently and quickly conceive, develop, and distribute
products
Data Analytics Examples - ✔✔1. vehicle telematics
2. new data relationships
3. text mining
4. developing new products (parametric insurance)
Telematics - ✔✔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 - ✔✔Obtaining information through language recognition
Tolerable Uncertainty - ✔✔aligning risks with the organization's risk
appetite
Risk Appetite - ✔✔amount of risk an org is willing to take in order to
achieve an anticipated result or return
4
100% Pass Guarantee Katelyn Whitman, All Rights
Questions and Answers 100% Pass
Traditional Risk Management (TRM) - ✔✔- 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 - ✔✔Enterprise Risk Management
Enterprise Risk Management (ERM) - ✔✔a comprehensive risk
management program that addresses the organization's pure, speculative,
strategic, and operational risks
Data Capture - ✔✔Term for the various methods by which data can be
entered into the computer so that it can be processed.
1
100% Pass Guarantee Katelyn Whitman, All Rights
,ex. smart products, IoT
Smart Products - ✔✔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) - ✔✔a world where interconnected, Internet-
enabled devices or "things" can collect and share data without human
intervention
Data Storage - ✔✔The process of updating one or more databases with new
transactions.
Cloud Computing - ✔✔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.
2
100% Pass Guarantee Katelyn Whitman, All Rights
,vast amounts of data can be stored or shared w/o a direct server
connection
Blockchain - ✔✔-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 - ✔✔verification process that establishes trust w/o centralized
authority
Examples of Blockchains - ✔✔travel and crop insurance
-cancellation or weather event creates a block in the chain that sybolizes
automatic payment to the insured, therefore lowering costs
3
100% Pass Guarantee Katelyn Whitman, All Rights
, Data Analytics - ✔✔allows RM professionals to better access and analyze
data to more efficiently and quickly conceive, develop, and distribute
products
Data Analytics Examples - ✔✔1. vehicle telematics
2. new data relationships
3. text mining
4. developing new products (parametric insurance)
Telematics - ✔✔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 - ✔✔Obtaining information through language recognition
Tolerable Uncertainty - ✔✔aligning risks with the organization's risk
appetite
Risk Appetite - ✔✔amount of risk an org is willing to take in order to
achieve an anticipated result or return
4
100% Pass Guarantee Katelyn Whitman, All Rights
