ARM 400 Risk in an Evolving World 2026
Latest Exam: 200 Questions and
Answers|| LATEST UPDATE
Big Data -CORRECTANSWER Set of data that is to large to be gathered and analyzed
by traditional methods
Smart Product -CORRECTANSWER An innovative item that uses sensors' wireless
sensor networks; and date collection, transmission and analysis to further enable the
item to be faster, more useful and otherwise improved.
Internet of Things (IoT) -CORRECTANSWER A network of objects that transmit data to
and from each other without human interaction
Cloud Computing -CORRECTANSWER Information, technology, and storage services
contractually provided from remote locations, through the internet or another network,
without a direct server connection.
Blockchain -CORRECTANSWER A distributed digital ledger that facilitates secure
transaction without the need of the third party
,Telematics -CORRECTANSWER The use of technological devices in vehicles with
wireless communication and GPS tracking that transmits data to a business or
government agency; some return info to the driver.
Text Mining -CORRECTANSWER Obtaining information through language recognition
Risk Appetite -CORRECTANSWER Amount of rick an organization is willing to take on
in order to achieve an anticipated result or return
Value at Risk (VaR) -CORRECTANSWER 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 -CORRECTANSWER The total cost incurred by an organization because
of the possibility of accidental loss
Exposure -CORRECTANSWER Any condition that presents a possibility of gain or loss,
whether or not an actual loss occurs
Volatility -CORRECTANSWER Frequent fluctuations, such as in the price of an asset
Likelihood -CORRECTANSWER A qualitative estimate of the certainty with which the
outcome of a specific event can be predicted
,Consequences -CORRECTANSWER The effects, positive or negative, of an
occurrence
Time Hosizon -CORRECTANSWER Estimated duration
Correlation -CORRECTANSWER A relationship between variable
Pure Risk -CORRECTANSWER A chance of loss or no loss, but no chance of gain
Speculative Risk -CORRECTANSWER A chance of loss, no loss or gain
Credit Risk -CORRECTANSWER The risk that customers or other creditors will fail to
make promised payments as they come due
Subjective Risk -CORRECTANSWER The perceived amount of risk based on an
individual's or organizations opinion
Objective Risk -CORRECTANSWER The measurable variation in uncertain outcomes
based on facts and data
Diversifiable Risk -CORRECTANSWER A risk that affects only some individuals,
businesses or small groups
, Systemic Risk -CORRECTANSWER The potential for a major disruption in the function
of an entire market or financial system
Market Risk -CORRECTANSWER Uncertainty about an investment's future value
because of potential chances in the market for that type of investment
Liquidity Risk -CORRECTANSWER The risk that an asset cannot be sold on short
notice without incurring a loss
Process for Managing Risk (5 steps) -CORRECTANSWER 1. Scan Environment
2. identify Risk
3. Analyze Risk
4. Treat Risks
5. Monitor & Review
Risk Management Framework -CORRECTANSWER A foundation for applying the risk
management process throughout the organization.
Risk Criteria -CORRECTANSWER Information used as a basis for measuring the
significance of a risk
Major options to treat risk (5) -CORRECTANSWER 1. Avoid the risk
Latest Exam: 200 Questions and
Answers|| LATEST UPDATE
Big Data -CORRECTANSWER Set of data that is to large to be gathered and analyzed
by traditional methods
Smart Product -CORRECTANSWER An innovative item that uses sensors' wireless
sensor networks; and date collection, transmission and analysis to further enable the
item to be faster, more useful and otherwise improved.
Internet of Things (IoT) -CORRECTANSWER A network of objects that transmit data to
and from each other without human interaction
Cloud Computing -CORRECTANSWER Information, technology, and storage services
contractually provided from remote locations, through the internet or another network,
without a direct server connection.
Blockchain -CORRECTANSWER A distributed digital ledger that facilitates secure
transaction without the need of the third party
,Telematics -CORRECTANSWER The use of technological devices in vehicles with
wireless communication and GPS tracking that transmits data to a business or
government agency; some return info to the driver.
Text Mining -CORRECTANSWER Obtaining information through language recognition
Risk Appetite -CORRECTANSWER Amount of rick an organization is willing to take on
in order to achieve an anticipated result or return
Value at Risk (VaR) -CORRECTANSWER 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 -CORRECTANSWER The total cost incurred by an organization because
of the possibility of accidental loss
Exposure -CORRECTANSWER Any condition that presents a possibility of gain or loss,
whether or not an actual loss occurs
Volatility -CORRECTANSWER Frequent fluctuations, such as in the price of an asset
Likelihood -CORRECTANSWER A qualitative estimate of the certainty with which the
outcome of a specific event can be predicted
,Consequences -CORRECTANSWER The effects, positive or negative, of an
occurrence
Time Hosizon -CORRECTANSWER Estimated duration
Correlation -CORRECTANSWER A relationship between variable
Pure Risk -CORRECTANSWER A chance of loss or no loss, but no chance of gain
Speculative Risk -CORRECTANSWER A chance of loss, no loss or gain
Credit Risk -CORRECTANSWER The risk that customers or other creditors will fail to
make promised payments as they come due
Subjective Risk -CORRECTANSWER The perceived amount of risk based on an
individual's or organizations opinion
Objective Risk -CORRECTANSWER The measurable variation in uncertain outcomes
based on facts and data
Diversifiable Risk -CORRECTANSWER A risk that affects only some individuals,
businesses or small groups
, Systemic Risk -CORRECTANSWER The potential for a major disruption in the function
of an entire market or financial system
Market Risk -CORRECTANSWER Uncertainty about an investment's future value
because of potential chances in the market for that type of investment
Liquidity Risk -CORRECTANSWER The risk that an asset cannot be sold on short
notice without incurring a loss
Process for Managing Risk (5 steps) -CORRECTANSWER 1. Scan Environment
2. identify Risk
3. Analyze Risk
4. Treat Risks
5. Monitor & Review
Risk Management Framework -CORRECTANSWER A foundation for applying the risk
management process throughout the organization.
Risk Criteria -CORRECTANSWER Information used as a basis for measuring the
significance of a risk
Major options to treat risk (5) -CORRECTANSWER 1. Avoid the risk
