ARM 54: Risk Management Principles and Practices Exam Review

87 Pages·2016·9.43 MB·English

by  Joe Zwielich

ARM 54: Risk Management Principles
and Practices Exam Review
CAD007
Speakers:
• Ann E. Myhr, CPCU, ARM, AIM, ASLI, AU, Senior Director of Knowledge Resources,
The Institutes
• Susan Kearney, CPCU, ARM, AAI, AU, Senior Director of Knowledge Resources,
The Institutes
Learning Objectives
At the end of this session, you will:
• Anticipate the ARM 54 Exam Format
• Recall specific principles likely to appear on the ARM 54 exam
• Appraise your strengths and weaknesses applied to ARM 54
exam subjects
Session Overview
• Exam Basics – What to Expect
• Test Taking Tips
• Review of the “Top” Most Challenging Educational Objectives of
ARM 54
Exam Basics – What to Expect
• Exam Length, Exam Format
• Educational Objectives
• Balanced Exam
• Formulas and Tables
Test Taking Tips
• Don’t get bogged down early
• Try the exam in “waves”
• Get the easy ones
• Eliminate the obviously wrong answers
• Use the mark for later review feature
• Use your scratch paper to keep track
Segment A
Segment A Segment B Segment C
● Intro to Risk Mgt. ● Risk Mgt. Framework ● Financial Statement
and Process Risk Analysis
● Risk Mgt. Standards
and Guidelines ● Risk Identification ● Capital Investment
and Financial Risk
● Hazard Risk ● Risk Analysis
● Monitoring and
● Operational, ● Risk Treatment
Reporting on Risk
Financial and Strategic
Risk
Assignment 1: Introduction to
Risk Management
• The Risk Management Environment
• Benefits of Risk Management
• Risk Management Objectives and Goals
• Basic Risk Measures
• Risk Classifications
• Enterprise Risk Management
Classifications of Risk
Risk Quadrants
Risk can be classified as diversifiable or nondiversifiable. Which
one of the following statements is true?
A: Inflation, unemployment, and natural disasters, such as
hurricanes, are examples of diversifiable risk.
B: Diversifiable risks tend not to be correlated so they can be
managed through diversification or spread of risk.
C: The distinction between diversifiable and nondiversifiable
risks is clear; risks cannot fall under both classifications
simultaneously.
D: Private insurance tends to concentrate on nondiversifiable
risks; government insurance is often suitable for diversifiable
risks.