What is Active Risk Manager?

Active Risk Manager (ARM) from Sword GRC, is a web browser based software solution that enables customers to achieve all of the benefits possible from a mature enterprise risk and opportunity management process.

What are the four types of risk management?

Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories:

• Avoidance (eliminate, withdraw from or not become involved)
• Reduction (optimize – mitigate)
• Sharing (transfer – outsource or insure)
• Retention (accept and budget)

What is the ORM process?

The term operational risk management (ORM) is defined as a continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in acceptance, mitigation, or avoidance of risk.

What is ARM risk management?

The Associate in Risk Management (ARM) program helps you enhance your risk management skills by teaching you how to build and implement a balanced risk financing strategy using retention, transfer, and hybrids. Increase participation in risk control programs through better understanding of staff motivation.

What is risk management explain?

Risk management is the process of identifying, assessing and controlling threats to an organization’s capital and earnings. These threats, or risks, could stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents and natural disasters.

What are the 3 types of risk in risk management?

There are different types of risks that a firm might face and needs to overcome. Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk.

How is risk managed?

Risk management is the practice of using processes, methods and tools for managing these risks. Risk management focuses on identifying what could go wrong, evaluating which risks should be dealt with and implementing strategies to deal with those risks.

What is the role of Active Risk Management?

The previously discussed risk identification, analysis, and mitigation planning are important, but they are not sufficient. Active risk management includes the assignment of mitigation responsibilities to appropriate project participants and the oversight of follow-through regarding every risk factor.

Which is the best measure of active risk?

In finance, tracking error or active risk is a measure of the risk in an investment portfolio that is due to active management decisions made by the portfolio manager; it indicates how closely a portfolio follows the index to which it is benchmarked. The best measure is the standard deviation of the difference between…

What is the difference between active and passive risk?

Active risk arises through portfolio management decisions that deviate a portfolio or investment away from its passive benchmark. Active risk comes directly from human or software decisions. Active risk is created by taking an active investment strategy instead of a completely passive one.

What is the difference between active and systematic risk?

Specifically, active risk is that difference between the managed portfolio’s return less the benchmark return over some time period. All portfolios have risk, but systematic and residual risk are out of the hands of a portfolio manager, while active risk directly arises from active management itself.