Ch. 1

Question 1

Blockchain

Answer 1

Distributed digital ledger that facilitates secure transactions

Question 2

Blockchain validation process

Answer 2

“Mining”

Question 3

Text mining

Answer 3

Obtaining info through language recognition

Question 4

6 Objectives of ERM

Answer 4

1. Tolerable Uncertainty
2. Profit & Growth
3. Legal and Reg. Compliance
4. Social Responsibility
5. Reduced COST of Risk
6. Reduced effects of hazard risks

Question 5

6 Risk Measures (EVLCTC)

Answer 5

1. Exposure
2. Volatility
3. Likelihood
4. Consequences
5. Time Horizon
6. Correlation

Question 6

Exposure

Answer 6

Maximum potential damage

Question 7

Longer time horizons are ___ than shorter ones

Answer 7

Riskier

Question 8

Pure risk

Answer 8

Loss or no loss

Question 9

Speculative risk

Answer 9

Gain, loss, or no loss

Question 10

4 Risk Quadrants (HOFS)

Answer 10

1. Hazard
2. Operational
3. Financial
4. Strategic

Question 11

Subjective Risk

Answer 11

Perceived risk based on opinion

Question 12

Process for managing risk (5 Steps)

Answer 12

1. Scan environment
2. Identify risks
3. Analyze Risks
4. Treat risks
5. Monitor and review

Question 13

5 Risk Treatments

Answer 13

1. Avoid
2. Modify likelihood or imapct
3. Transfer
4. Retain
5. Exploit

Question 14

Data analysts collaborate with risk professionals in this step of the ERM process

Answer 14

Analyze