RSK4803
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Page 1 of 11 RSK4803
Jan /Feb 2024
CONFIDENTIAL
RSK4803
JAN/FEB 2024
RISK FINANCING
STUDENT NUMBER
IDENTITY NUMBER
Marks
Question
Examiners
No
1 2 3
FOR USE BY EXAMINATION
INVIGILATOR 1
2
3
4
…………………………………………………
…….
Subject
…………………………………………………
…….
Number of paper
…………………………………………………
…….
Date of examination
Total
Open Rubric
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Page 2 of 11 RSK4803
Jan /Feb 2024
SPECIFIC INSTRUCTIONS FOR THE EXAMINATION
1. Answer ALL the questions.
2. Do NOT rewrite the questions.
3. Start each question on a new page.
4. Use the exact number sequence for your answers as is used for the questions.
5. Use a table for your answers to Question 1
6. Show ALL calculations.
7. Round calculations to two decimal places.
Preparing for upload
8. Use the following naming convention for your answer file:
Student number_RSK4803_Exam
9. Ensure that the pages in the answer file are in the correct sequence.
10. You may only upload one document – combine all the pages into one PDF document.
Declaration of own work
By submitting my answers to the examination paper, I hereby declare that I was admitted to
the examination, downloaded the examination myself, that the answer file is my own work and
that I have not received assistance from other students or people in completing this
assessment.
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Page 3 of 11 RSK4803
Jan /Feb 2024
Question 1 35 marks
1.1 In a management meeting it was decided that the company needed to recruit a risk
manager. However, there were different views about the main responsibility of the risk
management function.
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 Choose the statement that shows the two basic mistakes made when measuring risks. (2)
a. A claims manager understated the cost of a flood by 5% and accurately identified the
areas where losses would arise.
b. A bank manager overpriced the credit risk for home loans and did not consider the job
security of applicants.
c. The university management correctly anticipated that both its students and workers
would strike in the beginning of the academic year, but forgot to estimate the loss on
fees.
d. The National Treasury overstated the revenue to be collected, but correctly forecasted
the social welfare budget.
1.3 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. develop an appropriate budget for risk financing and present it to management and the
board for approval.
d. ensure that management and the board understand the probabilities associated with
the possible outcomes of the firm’s strategy before resources are allocated.
Downloaded by Corona Virus ()
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, lOMoARcPSD|22437965
Page 1 of 11 RSK4803
Jan /Feb 2024
CONFIDENTIAL
RSK4803
JAN/FEB 2024
RISK FINANCING
STUDENT NUMBER
IDENTITY NUMBER
Marks
Question
Examiners
No
1 2 3
FOR USE BY EXAMINATION
INVIGILATOR 1
2
3
4
…………………………………………………
…….
Subject
…………………………………………………
…….
Number of paper
…………………………………………………
…….
Date of examination
Total
Open Rubric
Downloaded by Corona Virus ()
, lOMoARcPSD|22437965
Page 2 of 11 RSK4803
Jan /Feb 2024
SPECIFIC INSTRUCTIONS FOR THE EXAMINATION
1. Answer ALL the questions.
2. Do NOT rewrite the questions.
3. Start each question on a new page.
4. Use the exact number sequence for your answers as is used for the questions.
5. Use a table for your answers to Question 1
6. Show ALL calculations.
7. Round calculations to two decimal places.
Preparing for upload
8. Use the following naming convention for your answer file:
Student number_RSK4803_Exam
9. Ensure that the pages in the answer file are in the correct sequence.
10. You may only upload one document – combine all the pages into one PDF document.
Declaration of own work
By submitting my answers to the examination paper, I hereby declare that I was admitted to
the examination, downloaded the examination myself, that the answer file is my own work and
that I have not received assistance from other students or people in completing this
assessment.
Downloaded by Corona Virus ()
, lOMoARcPSD|22437965
Page 3 of 11 RSK4803
Jan /Feb 2024
Question 1 35 marks
1.1 In a management meeting it was decided that the company needed to recruit a risk
manager. However, there were different views about the main responsibility of the risk
management function.
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 Choose the statement that shows the two basic mistakes made when measuring risks. (2)
a. A claims manager understated the cost of a flood by 5% and accurately identified the
areas where losses would arise.
b. A bank manager overpriced the credit risk for home loans and did not consider the job
security of applicants.
c. The university management correctly anticipated that both its students and workers
would strike in the beginning of the academic year, but forgot to estimate the loss on
fees.
d. The National Treasury overstated the revenue to be collected, but correctly forecasted
the social welfare budget.
1.3 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. develop an appropriate budget for risk financing and present it to management and the
board for approval.
d. ensure that management and the board understand the probabilities associated with
the possible outcomes of the firm’s strategy before resources are allocated.
Downloaded by Corona Virus ()