RSK4803
Assignment 3
(COMPLETE
ANSWERS)
2024 - DUE 7
October
2024
,RSK4803 Assignment 3 (COMPLETE ANSWERS) 2024 - DUE 7 October
2024
Question 1 22 marks 1.1 In a management meeting, it was decided that the
company needs to establish the risk management function. However, there
were different views about the main objective of risk management. Choose
the correct view about the responsibility of risk management. (2) a. The chief
executive officer held that the responsibility of risk management would be to
assess, control and finance critical risks facing the organisation and report the
outcomes to the board. b. The chief financial officer stated that the
responsibility of risk management would be to assess critical risks facing the
organisation and communicate the assessment to management and the
board. c. The human resources director argued that the responsibility of risk
management would be to compile a report on all risk exposures of the
organisation for reporting to the board. d. The compliance officer emphasised
that the responsibility of risk management would be to provide assurance
about the management of risks to stakeholders of the organisation. 1.2
Eskom, South Africa’s largest electricity provider, navigates a challenging and
promising environment in its mission to deliver reliable and sustainable energy
to the nation. The utility’s handling of debts is crucial for its financial stability,
operational efficiency, and environmental impact. Despite these factors,
Eskom’s decisions regarding liabilities play a pivotal role in its financial
For assistance whatsapp +254702715801
, stability. Eskom's total liabilities increased from R77,000 million in 2006 to
R480,000 million in 2016. Given that the liabilities in 2012 were 50% higher
than that in 2006, the total liabilities for 2012 would be calculated as follows:
(2) a. R115,500 million b. R480,000 million c. R38,500 million d. R557,000
million 1.3 Which of the following is not an example of unreimbursed losses?
(2) a. Underinsurance b. Franchise deductibles. c. Losses resulting from risks
with available insurance cover d. Uninsured Losses, either intentionally or
unintentionally Page 2 of 7 RSK4803 Tutorial Letter 102 © UNISA 2023 1.4
Comair Limited, a South African airline, operated scheduled services
domestically as a British Airways franchisee and under its own budget brand,
K. The airline faced various challenges, including fluctuating fuel prices,
regulatory requirements, weather disruptions, and passenger demand
variability. These challenges directly affected flight schedules, operational
costs, and customer experiences. During a particular disruption, around
191,000 passengers were affected by flight cancellations and 78,000
passengers experienced delays at Comair during the disruption. If Comair had
initially scheduled flights for 300,000 passengers, what percentage of
passengers were not directly affected by cancellations or delays? (2) a. 10%
b. 11% c. 31% d. 32% 1.5 In terms of funding the organisation’s strategy, the
job of the risk manager is to … (2) a. provide adequate funds for managing
risks and select an appropriate funding ratio between capital and debt. b.
For assistance whatsapp +254702715801
Assignment 3
(COMPLETE
ANSWERS)
2024 - DUE 7
October
2024
,RSK4803 Assignment 3 (COMPLETE ANSWERS) 2024 - DUE 7 October
2024
Question 1 22 marks 1.1 In a management meeting, it was decided that the
company needs to establish the risk management function. However, there
were different views about the main objective of risk management. Choose
the correct view about the responsibility of risk management. (2) a. The chief
executive officer held that the responsibility of risk management would be to
assess, control and finance critical risks facing the organisation and report the
outcomes to the board. b. The chief financial officer stated that the
responsibility of risk management would be to assess critical risks facing the
organisation and communicate the assessment to management and the
board. c. The human resources director argued that the responsibility of risk
management would be to compile a report on all risk exposures of the
organisation for reporting to the board. d. The compliance officer emphasised
that the responsibility of risk management would be to provide assurance
about the management of risks to stakeholders of the organisation. 1.2
Eskom, South Africa’s largest electricity provider, navigates a challenging and
promising environment in its mission to deliver reliable and sustainable energy
to the nation. The utility’s handling of debts is crucial for its financial stability,
operational efficiency, and environmental impact. Despite these factors,
Eskom’s decisions regarding liabilities play a pivotal role in its financial
For assistance whatsapp +254702715801
, stability. Eskom's total liabilities increased from R77,000 million in 2006 to
R480,000 million in 2016. Given that the liabilities in 2012 were 50% higher
than that in 2006, the total liabilities for 2012 would be calculated as follows:
(2) a. R115,500 million b. R480,000 million c. R38,500 million d. R557,000
million 1.3 Which of the following is not an example of unreimbursed losses?
(2) a. Underinsurance b. Franchise deductibles. c. Losses resulting from risks
with available insurance cover d. Uninsured Losses, either intentionally or
unintentionally Page 2 of 7 RSK4803 Tutorial Letter 102 © UNISA 2023 1.4
Comair Limited, a South African airline, operated scheduled services
domestically as a British Airways franchisee and under its own budget brand,
K. The airline faced various challenges, including fluctuating fuel prices,
regulatory requirements, weather disruptions, and passenger demand
variability. These challenges directly affected flight schedules, operational
costs, and customer experiences. During a particular disruption, around
191,000 passengers were affected by flight cancellations and 78,000
passengers experienced delays at Comair during the disruption. If Comair had
initially scheduled flights for 300,000 passengers, what percentage of
passengers were not directly affected by cancellations or delays? (2) a. 10%
b. 11% c. 31% d. 32% 1.5 In terms of funding the organisation’s strategy, the
job of the risk manager is to … (2) a. provide adequate funds for managing
risks and select an appropriate funding ratio between capital and debt. b.
For assistance whatsapp +254702715801
