RSK4803 Assignment 3
2024 - DUE 7 October
2024
QUESTIONS WITH COMPLETE ANSWERS
[DATE]
[COMPANY NAME]
[Company address]
,RSK4803 Assignment 3 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 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%
2024 - DUE 7 October
2024
QUESTIONS WITH COMPLETE ANSWERS
[DATE]
[COMPANY NAME]
[Company address]
,RSK4803 Assignment 3 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 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%
