RSK2602
Assignment 1
Semester 2 2025
(Answer Guide) -
DUE 20 August 2025
QUESTIONS WITH 100%
VERIFIED AND
CERTIFIED ANSWERS.
, 1|Page
RSK2602 Assignment 1 Semester 2 2025 (Answer Guide) - DUE 20 August 2025
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
Contents
Question 1 .................................................................................................................................................. 1
Question 2 .................................................................................................................................................. 4
Meaning of Risk Appetite ................................................................................................................... 4
Four Principles for Determining Risk Appetite ............................................................................ 4
Question 3 .................................................................................................................................................. 5
Cost Components of the Overall Cost of Risk ............................................................................. 5
References ................................................................................................................................................. 6
Question 1
1.1 Operational failures caused by staff are driven by error, fraud and data theft.
True – In operational risk management, staff-related failures often stem from
unintentional mistakes (errors), intentional misconduct (fraud), and the deliberate or
accidental leaking of confidential information (data theft). These human factors can
disrupt operations, cause financial loss, and harm organisational reputation (Basel
Committee, 2011).
1.2 Technology and systems are examples of external drivers of operational risk
management.
False – Technology and systems are generally considered internal drivers of
operational risk because they are part of the organisation’s internal environment and
infrastructure. External drivers are factors outside the organisation’s direct control, such
as natural disasters, political instability, or economic shifts (Hull, 2018).
Assignment 1
Semester 2 2025
(Answer Guide) -
DUE 20 August 2025
QUESTIONS WITH 100%
VERIFIED AND
CERTIFIED ANSWERS.
, 1|Page
RSK2602 Assignment 1 Semester 2 2025 (Answer Guide) - DUE 20 August 2025
VERIFIED AND CERTIFIED ANSWERS. WRITTEN IN REQUIRED FORMAT AND WITHIN
GIVEN GUIDELINES. IT IS GOOD TO USE AS A GUIDE AND FOR REFERENCE, NEVER
PLAGARIZE. Thank you and success in your academics.
UNISA, 2025
Contents
Question 1 .................................................................................................................................................. 1
Question 2 .................................................................................................................................................. 4
Meaning of Risk Appetite ................................................................................................................... 4
Four Principles for Determining Risk Appetite ............................................................................ 4
Question 3 .................................................................................................................................................. 5
Cost Components of the Overall Cost of Risk ............................................................................. 5
References ................................................................................................................................................. 6
Question 1
1.1 Operational failures caused by staff are driven by error, fraud and data theft.
True – In operational risk management, staff-related failures often stem from
unintentional mistakes (errors), intentional misconduct (fraud), and the deliberate or
accidental leaking of confidential information (data theft). These human factors can
disrupt operations, cause financial loss, and harm organisational reputation (Basel
Committee, 2011).
1.2 Technology and systems are examples of external drivers of operational risk
management.
False – Technology and systems are generally considered internal drivers of
operational risk because they are part of the organisation’s internal environment and
infrastructure. External drivers are factors outside the organisation’s direct control, such
as natural disasters, political instability, or economic shifts (Hull, 2018).
