ASSIGNMENT 1 2026
UNIQUE NO. 265691
DUE DATE: 29 MAY 2026
, Credit Risk Management - RSK4804
Assignment 01 2026
QUESTION 1
1.1 Five risks applicable in this case with reasons
1. Compliance Risk
Standard Bank faced compliance risk because it failed to comply with several provisions
of the Financial Intelligence Centre Act (FIC Act), including sections 21C, 23(c), 28 and
29. The bank did not perform ongoing due diligence, failed to keep proper records, and
did not report transactions within the required timeframes. This exposed the institution
to regulatory penalties and sanctions.
2. Operational Risk
Operational risk arose from weaknesses in the bank’s internal systems and processes.
The automated transaction monitoring system generated thousands of alerts that were
not attended to within the required 48 hours. This indicates ineffective operational
controls and poor processing systems.
3. Reputational Risk
The publication of the R13 million fine damaged Standard Bank’s reputation.
Customers, investors and stakeholders may lose confidence in the bank’s ability to
manage compliance and financial crime obligations effectively. Negative publicity can
reduce customer trust and future business opportunities.
4. Money Laundering Risk
The failure to conduct proper due diligence and delayed reporting of suspicious
transactions increased the risk that illegal transactions could pass through the bank