ARM 401(Actual) Exam Graded A+

strategic risk - ANSWER-uncertainties associated with the organizations long term goals and management decisions operational risk - ANSWER-uncertainties associated with the organizations procedures, systems, and policies predictive modeling definition - ANSWER-vastly more and better data coupled with newer sophisticated software tools that analyze and predict outcomes IoA definiton - ANSWER-the network of smart devices that sense the environment and process ands share data covariance - ANSWER-refers to the measure of how two random risk variables will change in relation to each other and is used to calculate the correlation variance - ANSWER-refers to the spread of the data set or how far apart the numbers are in relation to the mean the Monte Carlo simulation - ANSWER-a statistical computer model that stimulates the effects that various types of uncertainty may have on a process what is the Delphi Metho - ANSWER-involves submitting two rounds of queries to experts. First the experts answer the questions. They are then shown the anonymous responses, and asked to revise their answers if they would like. continues for as many rounds as they want. benefits of the Delphi method - ANSWER-cost effective eliminate group bias encourage participants to give their honest opinion biggest disadvantage of the Delphi method - ANSWER-experts opinion is limited to their current thinking on a subject and may not be forward thinking what is scenario analysis - ANSWER-identifies risks and predicts the potential consequences of those risks what is a HAZOP study - ANSWER-a comprehensive review of a process or system made up of 5 steps what are the 5 steps of the HAZOP process - ANSWER-subdivides the project into small components reviews each component identifies the cause and potential outcomes of each risk