ARM 400 - Segment A Flashcards
Learn vocab for 400 test
big data
sets of data that are too large to be gathered and analyzed by traditional methods
smart products
an innovative item that uses sensors, wireless sensor networks, data collection, and analysis to further enable the item to be faster, more useful, or otherwise improved
internet of things
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 digital leger 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
risk appetite
amount of risk an organization is willing to take on in order to achieve an anticipated result or return
value-at-risk
a technique to quantify financial risk by measuring the likelihood of losing more than a specific dollar amount over a specific period of time
downside risk
the potential for a significant financial loss or negative outcome, focusing primarily on the worst-case scenario where an investment or insured asset experiences a decline in value
cost of risk
the total cost incurred by an organization because of the possibility of accidental loss
non-insurance indemnity
contractual agreement where one party agrees to compensate another party for losses or damages incurred, without the involvement of an insurance policy
deterrent effects
the impact of legal punishment on individuals or the use of technology to encourage certain behaviors
exposure
any condition that represents a possibility of a gain or loss, whether or not an actual loss occurs
volatility
frequent fluctuations, 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, or an occurrence
time horizon
estimated duration of risk acceptance (longer durations = higher risk)
correlation
a relationship between variables (higher correlation means higher overall risk)
pure risk
a chance of loss or no loss, but no chance of gain
speculative risk
involves a chance of gain – every business venture involves speculative risks
price risk
uncertainty about cash flows resulting from possible changes in the cost of raw materials and other inputs
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
risk that affects only some individuals, businesses, or small groups
systemic risks
the potential for a major disruption in the function of an entire market or financial system
market risk
uncertainty about an investments 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. Considers factors such as causes of risks; effects of risks; metrics used to measure effects of risk; timeframe of potential effects of risk; methods to determine level of risk; and approach to combinations of risk and systemic risks
internal control
a system or process than organization uses to achieve its operational goals, internal and external financial reporting goals, or legal and regulatory compliance goals
insurtech
the use of emerging technologies in the insurance industry
risktech ecosystem
a system that uses technology to identify, measure, manage, and reduce risks. It’s part of a connected risk approach and combines risk management with technology to improve decision-making
sensor
a device that detects stimuli in its environment
preventive analytics
statistical and analytical techniques used to influence or prevent future events or behaviors
transducer
a device that converts one form of energy into another
actuator
a mechanical device that turns energy into motion or otherwise effects a change in position or rotation using a signal and an energy source
accelerometer
a device that measures acceleration, motion, and tilt
digital twin
virtual model of a physical objects, system, or process that uses real-time data to simulate its behavior and monitor operations
computer vision
a field of AI that uses machine learning and neural networks to teach computers to analyze visual inputs, such as images and videos
