[Type the company name]
RSK4802
Assignment
1 Memo |
Due 29 May
2025
NO PLAGIARISM
[Pick the date]
, Exam (elaborations)
RSK4802 Assignment 1 Memo | Due 29 May
2025
Course
Governance, Risk and Compliance Management (RSK4802)
Institution
University Of South Africa (Unisa)
Book
Risk Management
RSK4802 Assignment 1 Memo | Due 29 May 2025. All questions fully
answered.
Questions 1) Identify 4 keys risks that the bank may face as a result of its
non- compliance with the statutes as detailed in the article (8 marks).
1. Financial Penalties and Fines: Regulatory bodies have the authority to impose
significant monetary penalties on banks for failing to comply with laws and regulations.
The amount of the fine can vary greatly depending on the severity and nature of the non-
compliance, potentially reaching substantial figures that impact the bank's profitability
and capital adequacy.
2. Reputational Damage and Loss of Customer Trust: Non-compliance incidents can
severely damage a bank's reputation and erode public trust. Negative media coverage,
legal proceedings, and regulatory scrutiny can lead to a loss of customer confidence,
impacting deposit volumes, customer acquisition, and overall business. This reputational
harm can be long-lasting and difficult to recover from.
3. Legal and Regulatory Sanctions: Beyond financial penalties, non-compliance can result
in a range of other legal and regulatory sanctions. These may include restrictions on the
bank's operations, suspension or revocation of licenses, increased regulatory scrutiny and
audits, and potential legal action from affected parties (e.g., customers, shareholders). In
severe cases, individuals within the bank could even face criminal charges.
4. Operational Disruptions and Increased Costs: Addressing non-compliance issues
often requires significant time, resources, and management attention. Banks may need to
undertake costly remediation efforts, implement new compliance programs and controls,
and potentially face operational disruptions due to regulatory investigations or
enforcement actions. This can divert resources from core business activities and
negatively impact efficiency and profitability.
To provide a more specific answer tailored to the article you mentioned, please provide the
content of the article.
RSK4802
Assignment
1 Memo |
Due 29 May
2025
NO PLAGIARISM
[Pick the date]
, Exam (elaborations)
RSK4802 Assignment 1 Memo | Due 29 May
2025
Course
Governance, Risk and Compliance Management (RSK4802)
Institution
University Of South Africa (Unisa)
Book
Risk Management
RSK4802 Assignment 1 Memo | Due 29 May 2025. All questions fully
answered.
Questions 1) Identify 4 keys risks that the bank may face as a result of its
non- compliance with the statutes as detailed in the article (8 marks).
1. Financial Penalties and Fines: Regulatory bodies have the authority to impose
significant monetary penalties on banks for failing to comply with laws and regulations.
The amount of the fine can vary greatly depending on the severity and nature of the non-
compliance, potentially reaching substantial figures that impact the bank's profitability
and capital adequacy.
2. Reputational Damage and Loss of Customer Trust: Non-compliance incidents can
severely damage a bank's reputation and erode public trust. Negative media coverage,
legal proceedings, and regulatory scrutiny can lead to a loss of customer confidence,
impacting deposit volumes, customer acquisition, and overall business. This reputational
harm can be long-lasting and difficult to recover from.
3. Legal and Regulatory Sanctions: Beyond financial penalties, non-compliance can result
in a range of other legal and regulatory sanctions. These may include restrictions on the
bank's operations, suspension or revocation of licenses, increased regulatory scrutiny and
audits, and potential legal action from affected parties (e.g., customers, shareholders). In
severe cases, individuals within the bank could even face criminal charges.
4. Operational Disruptions and Increased Costs: Addressing non-compliance issues
often requires significant time, resources, and management attention. Banks may need to
undertake costly remediation efforts, implement new compliance programs and controls,
and potentially face operational disruptions due to regulatory investigations or
enforcement actions. This can divert resources from core business activities and
negatively impact efficiency and profitability.
To provide a more specific answer tailored to the article you mentioned, please provide the
content of the article.
