ARM 400 RISK IN AN EVOLVING
WORLD REVIEW 2026 EXAM SCRIPT
SOLVED QUESTIONS 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 (IoT).
Answer: A network of objects that transmit data to and from each other
without human interaction.
◉ Cloud computing.
Answer: Information, technology, and storage services contractually
provided from remote locations, through the internet or another network,
without a direct server connection.
◉ Blockchain.
Answer: A distributed digital ledger that facilitates secure transactions
without the need for a third party.
◉ 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.
, ◉ Text mining.
Answer: Obtaining information through language recognition.
◉ Risk appetite.
Answer: Amount of risk an organization is willing to take on in order to
achieve an anticipated result or return.
◉ 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.
◉ Exposure.
Answer: Any condition that presents a possibility of gain or loss,
whether or not an actual loss occurs.
◉ Volatility.
Answer: Frequent fluctuations, such as in the price of an asset.
WORLD REVIEW 2026 EXAM SCRIPT
SOLVED QUESTIONS 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 (IoT).
Answer: A network of objects that transmit data to and from each other
without human interaction.
◉ Cloud computing.
Answer: Information, technology, and storage services contractually
provided from remote locations, through the internet or another network,
without a direct server connection.
◉ Blockchain.
Answer: A distributed digital ledger that facilitates secure transactions
without the need for a third party.
◉ 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.
, ◉ Text mining.
Answer: Obtaining information through language recognition.
◉ Risk appetite.
Answer: Amount of risk an organization is willing to take on in order to
achieve an anticipated result or return.
◉ 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.
◉ Exposure.
Answer: Any condition that presents a possibility of gain or loss,
whether or not an actual loss occurs.
◉ Volatility.
Answer: Frequent fluctuations, such as in the price of an asset.
