ARM 400 ;ALL IN ONE ( REVISION QUESTIONS AND ANSWERS AND SIMPLIFIED REVISION SUMMARY

big data Sets of data that are too large to be gathered and analyzed by traditional methods smart product 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) A network of objects that transmit data to and from each other without human interaction. Cloud computing Information, technology, and storage services contractually provided from remote locations, through the internet or another network, without a direct server connection. Blockchain A distributed digital ledger that facilitates secure transactions without the need for a third party. Telematics 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 Obtaining information through language recognition. Holistic risk management is also known as enterprise risk management (ERM) True or False: Most organizations' sole risk management objective is to mitigate the effects of accidents. False. A holistic risk management approach entails the pursuit of a variety of objectives besides mitigating the effects of accidents. Risk appetite Amount of risk an organization is willing to take on in order to achieve an anticipated result or return. Value at risk (VaR) 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 The total cost incurred by an organization because of the possibility of accidental loss. risk appetite Amount of risk an organization is willing to take on in order to achieve an anticipated result or return. There are numerous basic risk measures, but six commonly used ones are exposure, volatility, likelihood, consequences, time horizon, correlation Exposure any condition that presents a possibility of gain or loss whether or not an actual loss occurs Volatility Frequent fluctuations, such as in the price of an asset. Likelihood A qualitative estimate of the certainty with which the outcome of a specific event can be predicted. Consequences The effects, positive or negative, of an occurrence. time horizon estimated duration correlation a relationship between variables longer term time horizons are generally _ than shorter ones riskier What is fueled by the capture, storage, and analysis of data? the big data revolution What enables vast amounts of data to be stored and shared? Cloud computing True or False: The most experienced risk professionals understand how to exploit pure risk for upside False Pure risk A chance of loss or no loss, but no chance of gain. speculative risk A chance of loss, no loss, or gain. credit risk The risk that customers or other creditors will fail to make promised payments as they come due subjective risk The perceived amount of risk based on an individual's or organization's opinion. objective risk The measurable variation in uncertain outcomes based on facts and data. diversifiable risk A risk that affects only some individuals, businesses, or small groups. systemic risk The potential for a major disruption in the function of an entire market or financial system. market risk Uncertainty about an investment's future value because of potential changes in the market for that type of investment liquidity risk The risk that an asset cannot be sold on short notice without incurring a loss Risk management framework A foundation for applying the risk management process throughout the organization. risk criteria Information used as a basis for measuring the significance of a risk. active listening consists of how many elements three elements what are the elements of active listening? attention, suspension of judgement, response internal control A system or process that an organization uses to achieve its operational goals, internal and external financial reporting goals, or legal and regulatory compliance goals. Risk monitoring and mitigation technology is known as risktech Risktech is the result of emerging technologies coupled with smart products insurtech The use of emerging technologies in the insurance industry. sensor a device that detects and measures stimuli in its environment preventive analytics Statistical and analytical techniques used to influence or prevent future events or behaviors. Which risk