Exam (elaborations)
ARM 400 Assignment 1 questions with complete solutions 2024
- Course
- Institution
ARM 400 Assignment 1 questions with complete solutions 2024
[Show more]
Content preview
ARM 400 Assignment 1-3Traditional Risk Management (TRM) - correct answer ✔- 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 - correct answer ✔Enterprise Risk Management
Enterprise Risk Management (ERM) - correct answer ✔a comprehensive risk
management program that addresses the organization's pure, speculative,
strategic, and operational risks
Data Capture - correct answer ✔Term for the various methods by which data
can be entered into the computer so that it can be processed.
ex. smart products, IoT
Smart Products - correct answer ✔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) - correct answer ✔a world where interconnected,
Internet-enabled devices or "things" can collect and share data without human
intervention
,Data Storage - correct answer ✔The process of updating one or more
databases with new transactions.
Cloud Computing - correct answer ✔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.
vast amounts of data can be stored or shared w/o a direct server connection
Blockchain - correct answer ✔-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 - correct answer ✔verification process that establishes trust w/o
centralized authority
Examples of Blockchains - correct answer ✔travel and crop insurance
-cancellation or weather event creates a block in the chain that sybolizes
automatic payment to the insured, therefore lowering costs
Data Analytics - correct answer ✔allows RM professionals to better access
and analyze data to more efficiently and quickly conceive, develop, and
distribute products
Data Analytics Examples - correct answer ✔1. vehicle telematics
, 2. new data relationships
3. text mining
4. developing new products (parametric insurance)
Telematics - correct answer ✔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 - correct answer ✔Obtaining information through language
recognition
Tolerable Uncertainty - correct answer ✔aligning risks with the organization's
risk appetite
Risk Appetite - correct answer ✔amount of risk an org is willing to take in
order to achieve an anticipated result or return
Value at Risk (VaR) - correct answer ✔The technique to measure the level of
financial risk within a firm by measuring the likelihood of losing more than a
specific amount of money over a specific period of time
Reducing Downside Risk - correct answer ✔-ex. losses and failures
-speculative risk
-business risk
-threshold limits
Speculative Risk - correct answer ✔A chance of loss, no loss, or gain.
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 LEWISSHAWN55. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79373 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now