,RSK4803 Assignment 3 (COMPLETE ANSWERS)
2024 - DUE 7 October 2024 ; 100% TRUSTED
Complete, trusted solutions and explanations.
Question 1 22 marks 1.1 In a management meeting, it was
decided that the company needs to establish the risk
management function. However, there were different views
about the main objective of risk management. Choose the
correct view about the responsibility of risk management. (2) a.
The chief executive officer held that the responsibility of risk
management would be to assess, control and finance critical
risks facing the organisation and report the outcomes to the
board. b. The chief financial officer stated that the responsibility
of risk management would be to assess critical risks facing the
organisation and communicate the assessment to management
and the board. c. The human resources director argued that the
responsibility of risk management would be to compile a report
on all risk exposures of the organisation for reporting to the
board. d. The compliance officer emphasised that the
responsibility of risk management would be to provide
assurance about the management of risks to stakeholders of
the organisation. 1.2 Eskom, South Africa’s largest electricity
provider, navigates a challenging and promising environment in
its mission to deliver reliable and sustainable energy to the
nation. The utility’s handling of debts is crucial for its financial
stability, operational efficiency, and environmental impact.
Despite these factors, Eskom’s decisions regarding liabilities play
a pivotal role in its financial stability. Eskom's total liabilities
, increased from R77,000 million in 2006 to R480,000 million in
2016. Given that the liabilities in 2012 were 50% higher than
that in 2006, the total liabilities for 2012 would be calculated as
follows: (2) a. R115,500 million b. R480,000 million c. R38,500
million d. R557,000 million 1.3 Which of the following is not an
example of unreimbursed losses? (2) a. Underinsurance b.
Franchise deductibles. c. Losses resulting from risks with
available insurance cover d. Uninsured Losses, either
intentionally or unintentionally Page 2 of 7 RSK4803 Tutorial
Letter 102 © UNISA 2023 1.4 Comair Limited, a South African
airline, operated scheduled services domestically as a British
Airways franchisee and under its own budget brand, K. The
airline faced various challenges, including fluctuating fuel
prices, regulatory requirements, weather disruptions, and
passenger demand variability. These challenges directly affected
flight schedules, operational costs, and customer experiences.
During a particular disruption, around 191,000 passengers were
affected by flight cancellations and 78,000 passengers
experienced delays at Comair during the disruption. If Comair
had initially scheduled flights for 300,000 passengers, what
percentage of passengers were not directly affected by
cancellations or delays? (2) a. 10% b. 11% c. 31% d. 32% 1.5 In
terms of funding the organisation’s strategy, the job of the risk
manager is to … (2) a. provide adequate funds for managing
risks and select an appropriate funding ratio between capital
and debt. b. provide adequate funds for managing risks and
guide management to use less costly sources of funds. c.
2024 - DUE 7 October 2024 ; 100% TRUSTED
Complete, trusted solutions and explanations.
Question 1 22 marks 1.1 In a management meeting, it was
decided that the company needs to establish the risk
management function. However, there were different views
about the main objective of risk management. Choose the
correct view about the responsibility of risk management. (2) a.
The chief executive officer held that the responsibility of risk
management would be to assess, control and finance critical
risks facing the organisation and report the outcomes to the
board. b. The chief financial officer stated that the responsibility
of risk management would be to assess critical risks facing the
organisation and communicate the assessment to management
and the board. c. The human resources director argued that the
responsibility of risk management would be to compile a report
on all risk exposures of the organisation for reporting to the
board. d. The compliance officer emphasised that the
responsibility of risk management would be to provide
assurance about the management of risks to stakeholders of
the organisation. 1.2 Eskom, South Africa’s largest electricity
provider, navigates a challenging and promising environment in
its mission to deliver reliable and sustainable energy to the
nation. The utility’s handling of debts is crucial for its financial
stability, operational efficiency, and environmental impact.
Despite these factors, Eskom’s decisions regarding liabilities play
a pivotal role in its financial stability. Eskom's total liabilities
, increased from R77,000 million in 2006 to R480,000 million in
2016. Given that the liabilities in 2012 were 50% higher than
that in 2006, the total liabilities for 2012 would be calculated as
follows: (2) a. R115,500 million b. R480,000 million c. R38,500
million d. R557,000 million 1.3 Which of the following is not an
example of unreimbursed losses? (2) a. Underinsurance b.
Franchise deductibles. c. Losses resulting from risks with
available insurance cover d. Uninsured Losses, either
intentionally or unintentionally Page 2 of 7 RSK4803 Tutorial
Letter 102 © UNISA 2023 1.4 Comair Limited, a South African
airline, operated scheduled services domestically as a British
Airways franchisee and under its own budget brand, K. The
airline faced various challenges, including fluctuating fuel
prices, regulatory requirements, weather disruptions, and
passenger demand variability. These challenges directly affected
flight schedules, operational costs, and customer experiences.
During a particular disruption, around 191,000 passengers were
affected by flight cancellations and 78,000 passengers
experienced delays at Comair during the disruption. If Comair
had initially scheduled flights for 300,000 passengers, what
percentage of passengers were not directly affected by
cancellations or delays? (2) a. 10% b. 11% c. 31% d. 32% 1.5 In
terms of funding the organisation’s strategy, the job of the risk
manager is to … (2) a. provide adequate funds for managing
risks and select an appropriate funding ratio between capital
and debt. b. provide adequate funds for managing risks and
guide management to use less costly sources of funds. c.
