RSK4801
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CONFIDENTIAL RSK4801
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May/June 2024
UNIVERSITY EXAMINATIONS
May/June 2024
RSK4801
OPERATIONAL RISK MANAGEMENT
100 marks
Duration: 4 hours
STUDENT NUMBER
Examiners:
Primary: Prof. AT Mutezo
Co-Primary: Ms. S Maré
Secondary: Mrs. Z Yousuf
External: Dr. H Le Roux
INSTRUCTIONS
This online assessment consists of 26 pages. Please read the instructions for the invigilator
app below and scan the QR code.
This paper consists of five questions based on a case study.
Write your answers in the designated spaces below the questions or answer the questions in a Word
document, number your answers correctly and submit in PDF format. Please note that this is a
closed-book examination.
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Open Rubric
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CONFIDENTIAL RSK4801
Page 2 of 26
May/June 2024
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Instructions:
Read the case study below and then answer ALL the questions related to it.
CASE STUDY: THE AIRPORT MANAGEMENT COMPANY (AMC) LTD
Introduction
The Airport Management Company Ltd (AMC) is listed on the Johannesburg Stock
Exchange (JSE). It manages an international airport near Johannesburg in Gauteng
and seven regional airports across South Africa. Over the past two years, several
high-profile events have caused AMC to experience a decline in headline earnings
and receive negative media coverage.
Governance
A corporate governance lobby group criticised AMC during the most recent annual
general meeting (AGM) for not complying with the King IV Report on Corporate
Governance. The lobby group was quite vocal about the audit committee's role,
which also took responsibility for the risk management oversight, and expressed
concern that the internal audit function lacked independence, as it also performed
specific operational roles, such as loss control and security. Significant pressure was
also placed on AMC to restructure the board and its sub-committees when the main
board was ignorant of the scope and impact of the high-profile events referred to
above.
Three years ago, the AMC Board decided that the company should become the
preferred airport management company in Southern Africa. They planned to achieve
this by acquiring small regional airports. AMC successfully acquired these airports,
but now both management and the Board are concerned about its ability to
effectively manage the larger portfolio of airports. Recent events at Johannesburg’s
flagship airport have underscored that the management team is overburdened and
faces constraints in effectively handling additional crises.
[TURN OVER]
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EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, lOMoARcPSD|22437965
CONFIDENTIAL RSK4801
Page 1 of 26
May/June 2024
UNIVERSITY EXAMINATIONS
May/June 2024
RSK4801
OPERATIONAL RISK MANAGEMENT
100 marks
Duration: 4 hours
STUDENT NUMBER
Examiners:
Primary: Prof. AT Mutezo
Co-Primary: Ms. S Maré
Secondary: Mrs. Z Yousuf
External: Dr. H Le Roux
INSTRUCTIONS
This online assessment consists of 26 pages. Please read the instructions for the invigilator
app below and scan the QR code.
This paper consists of five questions based on a case study.
Write your answers in the designated spaces below the questions or answer the questions in a Word
document, number your answers correctly and submit in PDF format. Please note that this is a
closed-book examination.
[TURN OVER]
Open Rubric
Downloaded by Corona Virus ()
, lOMoARcPSD|22437965
CONFIDENTIAL RSK4801
Page 2 of 26
May/June 2024
[TURN OVER]
Downloaded by Corona Virus ()
, lOMoARcPSD|22437965
CONFIDENTIAL RSK4801
Page 3 of 26
May/June 2024
Instructions:
Read the case study below and then answer ALL the questions related to it.
CASE STUDY: THE AIRPORT MANAGEMENT COMPANY (AMC) LTD
Introduction
The Airport Management Company Ltd (AMC) is listed on the Johannesburg Stock
Exchange (JSE). It manages an international airport near Johannesburg in Gauteng
and seven regional airports across South Africa. Over the past two years, several
high-profile events have caused AMC to experience a decline in headline earnings
and receive negative media coverage.
Governance
A corporate governance lobby group criticised AMC during the most recent annual
general meeting (AGM) for not complying with the King IV Report on Corporate
Governance. The lobby group was quite vocal about the audit committee's role,
which also took responsibility for the risk management oversight, and expressed
concern that the internal audit function lacked independence, as it also performed
specific operational roles, such as loss control and security. Significant pressure was
also placed on AMC to restructure the board and its sub-committees when the main
board was ignorant of the scope and impact of the high-profile events referred to
above.
Three years ago, the AMC Board decided that the company should become the
preferred airport management company in Southern Africa. They planned to achieve
this by acquiring small regional airports. AMC successfully acquired these airports,
but now both management and the Board are concerned about its ability to
effectively manage the larger portfolio of airports. Recent events at Johannesburg’s
flagship airport have underscored that the management team is overburdened and
faces constraints in effectively handling additional crises.
[TURN OVER]
Downloaded by Corona Virus ()