ARM 400 - Chapter 1
Big data - correct answer ✔Sets of data that are too large to be gathered and
analyzed by traditional methods.
Smart product - correct 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) - correct answer ✔A network of objects that transmit
data to and from each other without human interaction.
Cloud computing - correct answer ✔Information, technology, and storage
services contractually provided from remote locations, through the internet or
another network, without a direct server connection.
Blockchain - correct answer ✔A distributed digital ledger that facilitates
secure transactions without the need for a third party.
Telematics - correct 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 - correct answer ✔Obtaining information through language
recognition.
True or False: Most organizations' sole risk management objective is to
mitigate the effects of accidents. - correct answer ✔False. A holistic risk
management approach entails the pursuit of a variety of objectives besides
mitigating the effects of accidents.
, Enterprise Risk Management (ERM) - correct answer ✔Holistic risk
management strategy, minimize threats and exploit opportunities
Root cause analysis (RCA) - correct answer ✔Identifies a loss's predominant
cause. RCA can only look backward
Risk - correct answer ✔An expression of uncertainty about the future
Tolerable Uncertainty - correct answer ✔aligning risks with the organization's
risk appetite
Risk Appetite - correct answer ✔Amount of risk an organization is willing to
take on in order to achieve an anticipated result or return.
Value at risk (VaR0 - correct 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 - correct answer ✔The total cost incurred by an organization
because of the possibility of accidental loss.
Exposure - correct answer ✔Any condition that presents a possibility of gain
or loss, whether or not an actual loss occurs.
Provides a measure of the maximum potential damage associated with an
occurrence. Generally, the risk level increases as the exposure increases,
assuming the risk is nondiversifiable.
Big data - correct answer ✔Sets of data that are too large to be gathered and
analyzed by traditional methods.
Smart product - correct 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) - correct answer ✔A network of objects that transmit
data to and from each other without human interaction.
Cloud computing - correct answer ✔Information, technology, and storage
services contractually provided from remote locations, through the internet or
another network, without a direct server connection.
Blockchain - correct answer ✔A distributed digital ledger that facilitates
secure transactions without the need for a third party.
Telematics - correct 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 - correct answer ✔Obtaining information through language
recognition.
True or False: Most organizations' sole risk management objective is to
mitigate the effects of accidents. - correct answer ✔False. A holistic risk
management approach entails the pursuit of a variety of objectives besides
mitigating the effects of accidents.
, Enterprise Risk Management (ERM) - correct answer ✔Holistic risk
management strategy, minimize threats and exploit opportunities
Root cause analysis (RCA) - correct answer ✔Identifies a loss's predominant
cause. RCA can only look backward
Risk - correct answer ✔An expression of uncertainty about the future
Tolerable Uncertainty - correct answer ✔aligning risks with the organization's
risk appetite
Risk Appetite - correct answer ✔Amount of risk an organization is willing to
take on in order to achieve an anticipated result or return.
Value at risk (VaR0 - correct 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 - correct answer ✔The total cost incurred by an organization
because of the possibility of accidental loss.
Exposure - correct answer ✔Any condition that presents a possibility of gain
or loss, whether or not an actual loss occurs.
Provides a measure of the maximum potential damage associated with an
occurrence. Generally, the risk level increases as the exposure increases,
assuming the risk is nondiversifiable.
