SEP2606
ASSIGNMENT 1
DUE DATE: 12 AUGUST 2026
,SEP2606 ASSIGNMENT 1 2026
DUE 12 AUGUST 2026
SECTION A
QUESTION 1
After identifying the risks and security weaknesses within a client's organisation,
management must select the most cost-effective risk management strategy.
Discuss the four decisions available to management for managing risks cost-
effectively and provide your own examples.
Introduction
Once risks and security weaknesses have been identified, management must select the
most appropriate and cost-effective strategy. According to the SEP2606 Study Guide,
the overriding factor is normally cost. Management has four primary options known as
the "four Ts of risk management": terminate, tolerate, transfer, and treat (Study Guide,
Unit 1, pp. 10-12).
1. Terminate
The terminate option is chosen when the impact or consequence is so serious that the
activity must cease immediately (Study Guide, Unit 1, p. 10).
Advantages: No further loss can be suffered through exposure to the risk concerned.
Disadvantages: May destroy profit potential and offend clients.
, Example from Study Guide: Delivery vehicles are hijacked in a high-crime area;
deliveries to that area are stopped and customers collect goods elsewhere (Study
Guide, Unit 1, p. 10).
My own example would be a retail store experiencing armed robberies during late-night
operations decides to close at 18:00 instead of 21:00, eliminating the high-risk evening
window entirely.
2. Tolerate
The tolerate option is chosen when the impact of losses is small enough to accept
without expensive countermeasures (Study Guide, Unit 1, p. 11).
Advantages: No money spent on expensive security measures.
Disadvantages: Petty losses accumulate over time and create a culture of tolerance
leading to more serious crime.
Example from Study Guide: Staff occasionally take pens home; a trailer rental business
accepts occasional trailer theft (Study Guide, Unit 1, p. 11).
My own example would be A small office accepts minor personal photocopying costs
rather than implementing an expensive monitoring system.
3. Transfer
The transfer option outsources risk to a third party, typically through insurance (Study
Guide, Unit 1, p. 11).
Advantages: Protects against catastrophic losses.
ASSIGNMENT 1
DUE DATE: 12 AUGUST 2026
,SEP2606 ASSIGNMENT 1 2026
DUE 12 AUGUST 2026
SECTION A
QUESTION 1
After identifying the risks and security weaknesses within a client's organisation,
management must select the most cost-effective risk management strategy.
Discuss the four decisions available to management for managing risks cost-
effectively and provide your own examples.
Introduction
Once risks and security weaknesses have been identified, management must select the
most appropriate and cost-effective strategy. According to the SEP2606 Study Guide,
the overriding factor is normally cost. Management has four primary options known as
the "four Ts of risk management": terminate, tolerate, transfer, and treat (Study Guide,
Unit 1, pp. 10-12).
1. Terminate
The terminate option is chosen when the impact or consequence is so serious that the
activity must cease immediately (Study Guide, Unit 1, p. 10).
Advantages: No further loss can be suffered through exposure to the risk concerned.
Disadvantages: May destroy profit potential and offend clients.
, Example from Study Guide: Delivery vehicles are hijacked in a high-crime area;
deliveries to that area are stopped and customers collect goods elsewhere (Study
Guide, Unit 1, p. 10).
My own example would be a retail store experiencing armed robberies during late-night
operations decides to close at 18:00 instead of 21:00, eliminating the high-risk evening
window entirely.
2. Tolerate
The tolerate option is chosen when the impact of losses is small enough to accept
without expensive countermeasures (Study Guide, Unit 1, p. 11).
Advantages: No money spent on expensive security measures.
Disadvantages: Petty losses accumulate over time and create a culture of tolerance
leading to more serious crime.
Example from Study Guide: Staff occasionally take pens home; a trailer rental business
accepts occasional trailer theft (Study Guide, Unit 1, p. 11).
My own example would be A small office accepts minor personal photocopying costs
rather than implementing an expensive monitoring system.
3. Transfer
The transfer option outsources risk to a third party, typically through insurance (Study
Guide, Unit 1, p. 11).
Advantages: Protects against catastrophic losses.
