PASSMATE TUTORIALS
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE FRAMEWORK IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A POSSIBLE
SOLUTION TO THE TASK CONSISTENT WITH THEORY. THIS ASSIGNMENT IS
INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH THEIR ASSIGNMENT,
AND IN NO CASE THIS DOCUMENT SHOULD BE USED FOR CHEATING. WE BELIEVE
THIS WILL BE A GOOD STARTING POINT AS IT WAS PREPARED BY OUR TEAM OF
PROFESSIONAL PRIVATE TUTORS WHO ARE EXPERTS IN THE FIELD, AND IT WAS
PREPARED USING VARIOUS SOURCES. ANY SIMILARITY WITH ANY EXISTING
THEORY OR DISCUSSION BY OTHER AUTHORS IS EXCUSED. THE AUTHORS
HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF
THE ANSWERS CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER GUIDELINE
ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE IN GENERAL,
CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI, MNMs,
MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION PREPARATION,
RESEARCH AND RESEARCH PROPOSALS, DISSERTATION EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ, UP etc
For any enquiries the following numbers can be used for calling, SMS, WhatsApp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144
, PASSMATE TUTORIALS
Question 1 – Cost of Risk
The total cost of risk (TCOR) is the sum of all costs an organisation incurs in managing its risk
exposures, whether these costs relate to transferring risk (insurance), retaining risk (uninsured
losses and excesses), controlling risk (prevention and reduction), or administering the risk
management function, plus the opportunity cost of capital tied up in funding retained losses.
Innovative Solutions Ltd's cost of risk is calculated below.
Amount
Cost of risk category Item / basis of calculation Calculation
(R)
General insurance premiums
A. Risk transfer costs
(property, furniture, R1 200 000 × 14 400
(insurance premiums &
equipment, business 12 000
statutory cover)
interruption, liability)
R380 000 ×
UIF contributions 4 560 000
12
Compensation for
Occupational Injuries and R480 000 ×
5 760 000
Diseases (COID) 12
contributions
24 720
Subtotal A
000
B. Cost of retained losses
Laptop theft – excess borne by
(uninsured losses & 120 × R5 000 600 000
organisation (120 claims)
excesses)
Vehicle accident damage –
excess borne by organisation 25 × R7 000 175 000
(25 claims)
Ransomware payment – claim Full amount 10 000
invalid (ransom paid before retained 000
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144
DISCLAIMER: THIS IS NOT AN OFFICIAL GUIDE FROM UNISA. THE FRAMEWORK IS
NOT PREPARED NOR APPROVED BY UNISA, RATHER REPRESENTS A POSSIBLE
SOLUTION TO THE TASK CONSISTENT WITH THEORY. THIS ASSIGNMENT IS
INTENDED TO ASSIST STUDENTS IN GETTING STARTED WITH THEIR ASSIGNMENT,
AND IN NO CASE THIS DOCUMENT SHOULD BE USED FOR CHEATING. WE BELIEVE
THIS WILL BE A GOOD STARTING POINT AS IT WAS PREPARED BY OUR TEAM OF
PROFESSIONAL PRIVATE TUTORS WHO ARE EXPERTS IN THE FIELD, AND IT WAS
PREPARED USING VARIOUS SOURCES. ANY SIMILARITY WITH ANY EXISTING
THEORY OR DISCUSSION BY OTHER AUTHORS IS EXCUSED. THE AUTHORS
HOWEVER DO NOT CLAIM MONOPOLY TO KNOWLEDGE HENCE MODIFICATION OF
THE ANSWERS CONTAINED IN THIS FRAMEWORK MAY NOT BE PROHIBITED AS IT
CONTRIBUTES TO EXPANSION OF KNOWLEDGE. FOR ANY FURTHER GUIDELINE
ABOUT THE INFORMATION CONTAINED HERE AND THE MODULE IN GENERAL,
CONTACT PASSMATE TUTORIALS.
WE ASSIST WITH OTHER MODULES INCLUDING:
ECSs, FACs, MACs, MNGs, INTs, TRLs, HMEMS, PRMs, PROs, MNBs, DSC, QMI, MNMs,
MNO, MNPs, FIN, PUBs, MNMs, RESEARCH among others.
WE OFFER CLASSES, ASSIGNMENT GUIDELINES, EXAMINATION PREPARATION,
RESEARCH AND RESEARCH PROPOSALS, DISSERTATION EDITING etc.
OTHER THAN UNISA, WE ALSO ASSIST STUDENTS AT VARIOUS INSTITUTIONS
INCLUDING MANCOSA, REGENT, REGEYNESES, BOSTON, STADIO, OLG, UJ, UP etc
For any enquiries the following numbers can be used for calling, SMS, WhatsApp and
telegram
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144
, PASSMATE TUTORIALS
Question 1 – Cost of Risk
The total cost of risk (TCOR) is the sum of all costs an organisation incurs in managing its risk
exposures, whether these costs relate to transferring risk (insurance), retaining risk (uninsured
losses and excesses), controlling risk (prevention and reduction), or administering the risk
management function, plus the opportunity cost of capital tied up in funding retained losses.
Innovative Solutions Ltd's cost of risk is calculated below.
Amount
Cost of risk category Item / basis of calculation Calculation
(R)
General insurance premiums
A. Risk transfer costs
(property, furniture, R1 200 000 × 14 400
(insurance premiums &
equipment, business 12 000
statutory cover)
interruption, liability)
R380 000 ×
UIF contributions 4 560 000
12
Compensation for
Occupational Injuries and R480 000 ×
5 760 000
Diseases (COID) 12
contributions
24 720
Subtotal A
000
B. Cost of retained losses
Laptop theft – excess borne by
(uninsured losses & 120 × R5 000 600 000
organisation (120 claims)
excesses)
Vehicle accident damage –
excess borne by organisation 25 × R7 000 175 000
(25 claims)
Ransomware payment – claim Full amount 10 000
invalid (ransom paid before retained 000
CONTACT PASSMATE TUTORIALS @061 262 1185/068 053 8213/0717 513 144
