RSK2602
Assignment 1
Semester 2 2025
Due 20 August 2025
, RSK2602
Assignment 1
Semester 2 2025
Due 20 August 2025
Question 1: Evaluate the accuracy of each of the following statements. Indicate
whether you consider the statement accurate (true) or not (false) and provide a
full motivation for your answer.
1.1 Operational failures caused by staff are driven by error, fraud, and data theft.
Answer: True
Motivation: Staff-related operational failures typically arise from three primary causes:
human error (unintentional mistakes), fraud (deliberate deception for personal or
financial gain), and data theft (unauthorized access to or misappropriation of
information). These are recognized internal risk factors within organizational risk
management literature. For instance, an employee may incorrectly input data (error),
embezzle funds (fraud), or exfiltrate confidential records (data theft), each of which can
disrupt operations and compromise organizational integrity.
1.2 Technology and systems are examples of external drivers of operational risk
management.
Answer: False
Motivation: Technology and systems are internal organizational assets, designed,
maintained, and controlled within the enterprise. Although system failures can contribute
to operational risk, they do not qualify as external drivers. External drivers are
environmental or macro-level factors beyond managerial control, such as economic
volatility, regulatory shifts, or natural disasters.
Assignment 1
Semester 2 2025
Due 20 August 2025
, RSK2602
Assignment 1
Semester 2 2025
Due 20 August 2025
Question 1: Evaluate the accuracy of each of the following statements. Indicate
whether you consider the statement accurate (true) or not (false) and provide a
full motivation for your answer.
1.1 Operational failures caused by staff are driven by error, fraud, and data theft.
Answer: True
Motivation: Staff-related operational failures typically arise from three primary causes:
human error (unintentional mistakes), fraud (deliberate deception for personal or
financial gain), and data theft (unauthorized access to or misappropriation of
information). These are recognized internal risk factors within organizational risk
management literature. For instance, an employee may incorrectly input data (error),
embezzle funds (fraud), or exfiltrate confidential records (data theft), each of which can
disrupt operations and compromise organizational integrity.
1.2 Technology and systems are examples of external drivers of operational risk
management.
Answer: False
Motivation: Technology and systems are internal organizational assets, designed,
maintained, and controlled within the enterprise. Although system failures can contribute
to operational risk, they do not qualify as external drivers. External drivers are
environmental or macro-level factors beyond managerial control, such as economic
volatility, regulatory shifts, or natural disasters.
