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  • Exam Code: sca_ses5
  • Exam Name: Certified Administrator in Enterprise Storage 5 (050-751-SCA-EntStor-5)
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NEW QUESTION: 1
When modeling operational risk using separate distributions for loss frequency and loss severity, which of the following is true?
A. Loss severity and loss frequency are modeled using the same units of measurement
B. Loss severity and loss frequency are considered independent
C. Loss severity and loss frequency distributions are considered as a bivariate model with positive correlation
D. Loss severity and loss frequency are modeled as conditional probabilities
Answer: B
Explanation:
Explanation
When modeling operational loss frequency distribution (which, for example, may be based upon a Poisson distribution) and a loss severity distribution (for example, based upon a lognormal distribution), it is assumed that the frequency of losses and the severity of the losses are completely independent and do not impact each other. Therefore Choice 'a' is correct, and the others are not valid assumptions underlying the operational loss modeling.
Once each of these distributions has been built, a random number is drawn from each to determine a loss scenario. The process is repeated many times as part of a Monte Carlo simulation to get a the loss distribution.

NEW QUESTION: 2
KPIs are quantitative measurement of progress against the tactical goals of an organization. Which are three characteristics of KPIs? (Choose three.)
A. KPIs are set according to priorities: magnitude and urgency
B. KPIs must be strategic and tactical in nature
C. KPIs can be financial, managerial, or operational
D. KPIs measure progress against goals
E. KPIs define what needs to happen to achieve desired results in the time, budget, and level of expected quality
Answer: C,D,E

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