ARM 400 COMPREHENSIVE EXAMINATION
TEST 2026 FULL QUESTIONS AND
ANSWERS HIGH SCORE SET
◉ Smart Product. 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. Answer: describes a system in which everyday
objects are connected to the internet and in turn are able to
communicate information throughout an interconnected system
◉ Cloud Computing. 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.
◉ Blockchain. Answer: A digital ledger in which transactions made
in bitcoin or another cryptocurrency are recorded chronologically
and publicly
◉ Telematics. 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.
◉ Risk Appetite. Answer: The degree of uncertainty an entity is
willing to take on, in anticipation of a reward.
◉ Value at Risk (VaR). 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. Answer: The total cost incurred by an organization
because of the possibility of accidental loss.
◉ Risk Exposure. Answer: An aggregate measure of the potential
impact of all risks at any given point in time in a project, program, or
portfolio.
◉ Volatility. Answer: Indicates how much and how quickly the value
of an investment, market, or market sector changes.
◉ likelihood. Answer: probability
◉ consequence. Answer: the result of an action
,◉ Time Horizon. Answer: the intended duration of a plan
◉ Correlation. Answer: A measure of the extent to which two factors
vary together, and thus of how well either factor predicts the other.
◉ Pure Risk. Answer: A chance of loss or no loss, but no chance of
gain.
◉ Speculative Risk. Answer: Chance of loss or gain
◉ Subjective Risk. Answer: The perceived amount of risk based on
an individual's or organization's opinion.
◉ Objective Risk. Answer: The measurable variation in uncertain
outcomes based on facts and data.
◉ diversifiable risk. Answer: A risk that affects only some
individuals, businesses, or small groups.
◉ nondiversifiable risk. Answer: a risk that affects the entire
economy or large numbers of persons or groups within the economy
◉ systemic risk. Answer: The potential for a major disruption in the
function of an entire market or financial system.
, ◉ market risk. Answer: risk that affects all companies in the stock
market
◉ Liquidity Risk. Answer: The risk that an asset cannot be sold on
short notice without incurring a loss
◉ Hazard risk. Answer: arises from property, liability, or personnel
loss exposures.
◉ Operational Risk. Answer: arises from people, processes, systems,
or controls
◉ financial risk. Answer: arises from the effect of market forces on
financial assets or liabilities
◉ Strategic Risk. Answer: Arises from trends in the economy and
society. Economic Environment. Political Environment.
Demographics Competition.
◉ risk management framework. Answer: A foundation for applying
the risk management process throughout the organization.
◉ Process for managing risk. Answer: -scan environment
TEST 2026 FULL QUESTIONS AND
ANSWERS HIGH SCORE SET
◉ Smart Product. 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. Answer: describes a system in which everyday
objects are connected to the internet and in turn are able to
communicate information throughout an interconnected system
◉ Cloud Computing. 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.
◉ Blockchain. Answer: A digital ledger in which transactions made
in bitcoin or another cryptocurrency are recorded chronologically
and publicly
◉ Telematics. 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.
◉ Risk Appetite. Answer: The degree of uncertainty an entity is
willing to take on, in anticipation of a reward.
◉ Value at Risk (VaR). 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. Answer: The total cost incurred by an organization
because of the possibility of accidental loss.
◉ Risk Exposure. Answer: An aggregate measure of the potential
impact of all risks at any given point in time in a project, program, or
portfolio.
◉ Volatility. Answer: Indicates how much and how quickly the value
of an investment, market, or market sector changes.
◉ likelihood. Answer: probability
◉ consequence. Answer: the result of an action
,◉ Time Horizon. Answer: the intended duration of a plan
◉ Correlation. Answer: A measure of the extent to which two factors
vary together, and thus of how well either factor predicts the other.
◉ Pure Risk. Answer: A chance of loss or no loss, but no chance of
gain.
◉ Speculative Risk. Answer: Chance of loss or gain
◉ Subjective Risk. Answer: The perceived amount of risk based on
an individual's or organization's opinion.
◉ Objective Risk. Answer: The measurable variation in uncertain
outcomes based on facts and data.
◉ diversifiable risk. Answer: A risk that affects only some
individuals, businesses, or small groups.
◉ nondiversifiable risk. Answer: a risk that affects the entire
economy or large numbers of persons or groups within the economy
◉ systemic risk. Answer: The potential for a major disruption in the
function of an entire market or financial system.
, ◉ market risk. Answer: risk that affects all companies in the stock
market
◉ Liquidity Risk. Answer: The risk that an asset cannot be sold on
short notice without incurring a loss
◉ Hazard risk. Answer: arises from property, liability, or personnel
loss exposures.
◉ Operational Risk. Answer: arises from people, processes, systems,
or controls
◉ financial risk. Answer: arises from the effect of market forces on
financial assets or liabilities
◉ Strategic Risk. Answer: Arises from trends in the economy and
society. Economic Environment. Political Environment.
Demographics Competition.
◉ risk management framework. Answer: A foundation for applying
the risk management process throughout the organization.
◉ Process for managing risk. Answer: -scan environment
