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ARM 400 Risk in an Evolving World 2025
Latest Exam: 200 Questions and Answers
with Rationales | Comprehensive Test
Bank
Big Data - (ANSWER)Set of data that is to large to be gathered and analyzed by
traditional methods
Smart Product - (ANSWER)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) - (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
transaction without the need of the third party
Telematics - (ANSWER)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.
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Text Mining - (ANSWER)Obtaining information through language recognition
Risk Appetite - (ANSWER)Amount of rick 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
Likelihood - (ANSWER)A qualitative estimate of the certainty with which the
outcome of a specific event can be predicted
Consequences - (ANSWER)The effects, positive or negative, of an occurrence
Time Hosizon - (ANSWER)Estimated duration
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Correlation - (ANSWER)A relationship between variable
Pure Risk - (ANSWER)A chance of loss or no loss, but no chance of gain
Speculative Risk - (ANSWER)A chance of loss, no loss or gain
Credit Risk - (ANSWER)The risk that customers or other creditors will fail to make
promised payments as they come due
Subjective Risk - (ANSWER)The perceived amount of risk based on an individual's
or organizations 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
Systemic Risk - (ANSWER)The potential for a major disruption in the function of
an entire market or financial system
Market Risk - (ANSWER)Uncertainty about an investment's future value because
of potential chances in the market for that type of investment
ARM 400 Risk in an Evolving World 2025
Latest Exam: 200 Questions and Answers
with Rationales | Comprehensive Test
Bank
Big Data - (ANSWER)Set of data that is to large to be gathered and analyzed by
traditional methods
Smart Product - (ANSWER)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) - (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
transaction without the need of the third party
Telematics - (ANSWER)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.
, 2
Text Mining - (ANSWER)Obtaining information through language recognition
Risk Appetite - (ANSWER)Amount of rick 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
Likelihood - (ANSWER)A qualitative estimate of the certainty with which the
outcome of a specific event can be predicted
Consequences - (ANSWER)The effects, positive or negative, of an occurrence
Time Hosizon - (ANSWER)Estimated duration
, 3
Correlation - (ANSWER)A relationship between variable
Pure Risk - (ANSWER)A chance of loss or no loss, but no chance of gain
Speculative Risk - (ANSWER)A chance of loss, no loss or gain
Credit Risk - (ANSWER)The risk that customers or other creditors will fail to make
promised payments as they come due
Subjective Risk - (ANSWER)The perceived amount of risk based on an individual's
or organizations 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
Systemic Risk - (ANSWER)The potential for a major disruption in the function of
an entire market or financial system
Market Risk - (ANSWER)Uncertainty about an investment's future value because
of potential chances in the market for that type of investment
