Exam (elaborations)
ARM 402 2024 RECENT UPDATE COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS GRADE A+
- Course
- Institution
ARM 402 2024 RECENT UPDATE COMPREHENSIVE QUESTIONS AND VERIFIED ANSWERS GRADE A+
[Show more]
1 review
By: TheAlphanurse • 4 months ago
Great doc!!
Content preview
ARM 402 2024 RECENT UPDATE COMPREHENSIVEQUESTIONS AND VERIFIED ANSWERS GRADE A+
Prouty Approach - (correct answer) identifies four broad categories
of loss frequency and three broad categories of loss severity
Prouty's 3 categories of loss severity - (correct answer)
1) slight- losses that can be retained easily
2) significant- part of the loss must be transferred
3) severe- the organization's survival depends on the transfer of loss
Prouty's 4 categories of loss frequency - (correct answer) 1) Almost
nil- extremely unlikely to occur
2) Slight- could occur, but hasn't
3) Moderate- occurs occasionally
4) Definite- occurs regularly
Risk Avoidance - (correct answer) A risk control technique that
involves ceasing or never undertaking an activity so that the possibility
of a future loss occurring from that activity is eliminated.
Risk Modification - (correct answer) A process to increase likelihood
and/or consequences from positive or negative outcome
Risk Treatment - (correct answer) The selection and implementation
of actions to help manage or mitigate a risk.
Residual Risk - (correct answer) The level of risk remaining after
actions are taken to alter the level of risk.
,5 common ways risk managers treat risk - (correct answer)
Avoidance, modification, transfer, retention, or (for opportunities)
exploitation.
Risk Transfer - (correct answer) buying insurance to shift the risk of
financial loss to an insurance company - transferring the risk to another
party (budgeting for the cost)
Risk Retention - (correct answer) accepting that some risks simply
arise in the course of one's life and consciously retaining that risk -
assumption of risk in which gains and losses are retained within the
organization
Risk exploitation - (correct answer) A risk management strategy for
making a positive uncertainty more likely to occur
Risk Financing - (correct answer) refers to techniques that provide for
payment of losses after they occur
Duplication - (correct answer) risk retention and modification
technique that creates backups of exposure units
(duplication/separation/diversification are all techniques) - Creating
copies of asset so if the primary asset is threatened the organization will
still have the data/use available - good for files/documents
Separation - (correct answer) Mitigating and retention that physically
divides so the asset or activity isn't all impacted at once
,Hedging - (correct answer) A financial transaction in which one asset
is held to offset the risk associated with another asset.
credit derivatives - (correct answer) derivatives used to reduce a
lender's exposure to credit risk by a 3rd party for a fee
Diversification - (correct answer) A risk control technique that
spreads loss exposures over numerous projects, products, markets, or
regions
Holistic risk management - (correct answer) Manages risk across all
levels and functions within an organization presents a more complete
picture of an organization's risk portfolio and profile. Allows for better
decisions and improved outcomes for senior management. Also uses
available resources as efficiently as possible to maximize outcomes.
Elements of successful holistic risk management - (correct answer)
organization-wide involvement, organizational and departmental
structure that facilitates managing risks as a group, policies that cross
departmental barriers, Measurements that consider the entire
organization, visible upper management engagement, and performance
metrics
Covariance - (correct answer) relative association between variables
to move in tandem or independently of each other
Correlation - (correct answer) A measure of the relationship between
two variables. Strength of the relationship -1 to 1, which is the
correlation coefficient value.
, 3 modes of persuasion - (correct answer) ethos, logos, pathos
Ethos - (correct answer) credibility
Logos - (correct answer) Appeal to logic
Pathos - (correct answer) Appeal to emotion
nonverbal communication (ethos) - (correct answer) tone of voice,
level of eye contact, and body language
Eye contact (ethos) - (correct answer) When you're uncertain about
appropriate eye contact, shift your vision from the other person's eyes
to between the eyes, or to the nose or lower face, and then back again
to the eyes
body language - (correct answer) sitting up and leaning slightly
toward your audience can convey confidence in your message and
interest in those around you
Effective meetings - (correct answer) Agenda, objectives, anticipated
questions, knowledge of subject, invite the right people. Structure
should be strong opening, succinct supporting material, and a powerful
conclusion. End of meeting should be a plan to execute objectives. Use
of visual aids limited but impactful. Start with an attention grabbing fact.
Present just enough facts and figures to make it believable.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller MEGAMINDS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $0.00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now