RSK4802
ASSIGNMENT 1 2025
UNIQUE NO.
DUE DATE: 29 MAY 2025
, RSK4802
Assignment 1 2025
Unique Number:
Due Date: 29 May 2025
Governance, Risk and Compliance Management
Question 1: Identify four key risks that the bank may face as a result of its non-
compliance with the statutes as detailed in the article (8 marks)
1. Regulatory Risk:
Non-compliance with statutes such as the Financial Sector Regulation Act, the
Financial Intelligence Centre Act (FICA), or the National Credit Act (NCA)
exposes the bank to sanctions, fines, or license suspension by regulatory bodies
like the FSCA or SARB.
2. Reputational Risk:
Failure to comply can damage public trust. For a retail-focused bank like Capitec,
negative media exposure or regulatory action may lead to customer attrition and
market skepticism.
3. Operational Risk:
Non-compliance often signals weaknesses in internal controls, processes, or IT
systems. This can increase the risk of fraud, money laundering, or data
breaches, which can further lead to business disruptions.
4. Legal Risk:
Affected customers or stakeholders may initiate lawsuits, especially if the non-
compliance leads to financial loss. The bank could face civil litigation, class
actions, or other legal penalties, impacting its financial standing.
ASSIGNMENT 1 2025
UNIQUE NO.
DUE DATE: 29 MAY 2025
, RSK4802
Assignment 1 2025
Unique Number:
Due Date: 29 May 2025
Governance, Risk and Compliance Management
Question 1: Identify four key risks that the bank may face as a result of its non-
compliance with the statutes as detailed in the article (8 marks)
1. Regulatory Risk:
Non-compliance with statutes such as the Financial Sector Regulation Act, the
Financial Intelligence Centre Act (FICA), or the National Credit Act (NCA)
exposes the bank to sanctions, fines, or license suspension by regulatory bodies
like the FSCA or SARB.
2. Reputational Risk:
Failure to comply can damage public trust. For a retail-focused bank like Capitec,
negative media exposure or regulatory action may lead to customer attrition and
market skepticism.
3. Operational Risk:
Non-compliance often signals weaknesses in internal controls, processes, or IT
systems. This can increase the risk of fraud, money laundering, or data
breaches, which can further lead to business disruptions.
4. Legal Risk:
Affected customers or stakeholders may initiate lawsuits, especially if the non-
compliance leads to financial loss. The bank could face civil litigation, class
actions, or other legal penalties, impacting its financial standing.
