ARM 400 Concepts assignment 2023 #31 Questions and answers

ARM 400 Concepts assignment 2023
#31 Questions and answers.
Benefits of risk management (6) - -

1. tolerable uncertainty
2. profitability and growth
3. legal and regulatory compliance
4. social responsibility
5. reduced cost of risk
6. reduced deterrent effects of hazard risk

-Basic risk measures (6) - -
1. exposure
2. volatility
3. likelihood
4. consequences
5. time horizon
6. correlation

-3 pairs of risk classifications - -
1. pure-speculative
2. subjective-objective
3. diversifiable-nondiversifiable

-4 risk quadrants - -hazard, operational, financial, strategic

-RM cycle - -scan-identify-analyze-treat-monitor+review
(communicate + collaborate)

-4 risk environments - -
physical
social
legal
economic

-3 bases of organizational culture - -
beliefs
values
behaviors