ARM 400 CERTIFICATION REVIEW SOLVED
QUESTIONS WITH COMPLETE SOLUTION
●● 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
QUESTIONS WITH COMPLETE SOLUTION
●● 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
