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RSK2602 Assignment 1 (DETAILED ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED

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RSK2602 Assignment 1 (DETAILED ANSWERS) Semester 2 2025 - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED Answers, guidelines, workings and references....1.1 Operational failures caused by staff are driven by error, fraud and data theft. True/False 1.2 Technology and systems are examples of external drivers of operational risk management. True/False 1.3 Operational risk is the risk of loss arising from human error, management failure and fraud or shortcomings in systems or controls. This would include strategic and reputational risk. True/False Downloaded by Phuluso Mukwevh () lOMoARcPSD| RSK2602/02/2025 3 1.4 Risk-indifferent requires no changes in the risk/reward balance in return for an increase in risk. This attitude is usually not conducive for taking any risks to enhance the business. True/False 1.5 Self-insurance can be achieved by way of captives. True/False 1.6 Risk appetite is the financial amount that the organisation is not prepared to loose. True/False 1.7 The impact of risk exposures can be rated as probably, possible and remote. True/False 1.8 Risk transfer entails the physical transfer of the risk to a third party. True/False Downloaded by Phuluso Mukwevh () lOMoARcPSD| 4 1.9 The top-down approach to risk management involves only the top management of an organisation. True/False 1.10 Value-at-risk is used to determine how portfolios might behave under certain extreme conditions. True/False (20) Question 2 Explain briefly what is meant by risk appetite and highlight four principles that could be considered in determining the risk appetite for an organisation. (10) Downloaded by Phuluso Mukwevh () lOMoARcPSD| RSK2602/02/2025 5 Question 3 List and explain the cost components that comprise the overall cost of risk for a business organisation. (10)

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RSK2602
Assignment 1 Semester 2 2025
Unique #:

Due Date: 20 August 2025

Detailed solutions, explanations, workings
and references.

+27 81 278 3372

, 1. INTRODUCTION

This assignment examines two significant socio-economic challenges facing South
Africa: the connection between illegal immigration and drug trafficking, and the
emergence of child-headed households due to the AIDS pandemic. The first section
focuses on how porous borders and inadequate immigration controls can facilitate
the entry of individuals involved in organised crime, thereby contributing to the
trafficking and distribution of illegal drugs. It further considers the socio-economic
and security implications of this link and suggests measures to combat the problem
through stronger border management, law enforcement collaboration, and
community awareness initiatives. The second section explores the impact of
HIV/AIDS on family structures, particularly how it has led to an increase in child-
headed households. It will discuss the social, emotional, and economic challenges
these households face, as well as the need for targeted interventions by
government, NGOs, and communities. Together, these topics highlight pressing
issues that demand coordinated policy and societal responses.



2. DEFINITION OF KEY CONCEPTS

2.1. Illegal Immigration

Illegal immigration refers to the act of entering or residing in a country without
complying with its legal entry, residence, or documentation requirements. In South
Africa, this often involves crossing borders without official permits, overstaying visas,
or using fraudulent documents.



2.2. Drug Trafficking

Drug trafficking is the illegal production, transport, sale, or distribution of controlled
substances. It is a transnational organised crime that often exploits porous borders,
weak enforcement capacity, and corrupt networks to move illicit drugs into, through,
or out of South Africa.



2.3. Child-Headed Households


Varsity Cube 2025 +27 81 278 3372

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