[Type the company name]
RSK4802
Assignment
1 Memo |
Due 29 May
2025
NO PLAGIARISM
[Pick the date]
, Exam (elaborations)
RSK4802 Assignment 1 Memo | Due 29 May
2025
Course
Governance, Risk and Compliance Management (RSK4802)
Institution
University Of South Africa (Unisa)
Book
Risk Management
RSK4802 Assignment 1 Memo | Due 29 May 2025. All questions fully
answered.
Questions 1) Identify 4 keys risks that the bank may face as a result of its
non- compliance with the statutes as detailed in the article (8 marks).
Question 1: Identify 4 key risks that the bank may face as a result of its non-compliance
with the statutes as detailed in the article.
1. Legal and Regulatory Risk
Non-compliance with statutes such as the Financial Intelligence Centre Act (FICA), Banks Act,
or Companies Act can lead to legal sanctions. The bank may face lawsuits, regulatory fines, or
even suspension of its operating license. This undermines the institution’s legal standing and
could result in costly litigation.
2. Reputational Risk
When a bank is found to be non-compliant, especially with consumer protection or anti-money
laundering regulations, public trust deteriorates. Negative media coverage and loss of client
confidence can harm the bank’s brand, leading to customer attrition and declining market share.
3. Financial Risk
Non-compliance may result in direct financial penalties and increased costs of compliance in the
future. Furthermore, if the bank is found liable for losses to clients or stakeholders due to its
negligence, it may have to pay compensation, which affects profitability and liquidity.
4. Operational Risk
Failure to adhere to statutory requirements often points to poor internal controls and governance.
This can disrupt internal operations, lead to inefficiencies, and expose the bank to fraud and data
breaches, which may further compound financial and reputational damage.
RSK4802
Assignment
1 Memo |
Due 29 May
2025
NO PLAGIARISM
[Pick the date]
, Exam (elaborations)
RSK4802 Assignment 1 Memo | Due 29 May
2025
Course
Governance, Risk and Compliance Management (RSK4802)
Institution
University Of South Africa (Unisa)
Book
Risk Management
RSK4802 Assignment 1 Memo | Due 29 May 2025. All questions fully
answered.
Questions 1) Identify 4 keys risks that the bank may face as a result of its
non- compliance with the statutes as detailed in the article (8 marks).
Question 1: Identify 4 key risks that the bank may face as a result of its non-compliance
with the statutes as detailed in the article.
1. Legal and Regulatory Risk
Non-compliance with statutes such as the Financial Intelligence Centre Act (FICA), Banks Act,
or Companies Act can lead to legal sanctions. The bank may face lawsuits, regulatory fines, or
even suspension of its operating license. This undermines the institution’s legal standing and
could result in costly litigation.
2. Reputational Risk
When a bank is found to be non-compliant, especially with consumer protection or anti-money
laundering regulations, public trust deteriorates. Negative media coverage and loss of client
confidence can harm the bank’s brand, leading to customer attrition and declining market share.
3. Financial Risk
Non-compliance may result in direct financial penalties and increased costs of compliance in the
future. Furthermore, if the bank is found liable for losses to clients or stakeholders due to its
negligence, it may have to pay compensation, which affects profitability and liquidity.
4. Operational Risk
Failure to adhere to statutory requirements often points to poor internal controls and governance.
This can disrupt internal operations, lead to inefficiencies, and expose the bank to fraud and data
breaches, which may further compound financial and reputational damage.
