Assignment 2 Semester 1 2025
2 2025
Unique Number:
Due date: 2 October 2025
QUESTION 1
After risks are identified and vulnerabilities assessed, management must decide how to
respond in order to safeguard organisational assets. According to Rogers, Van Schalkwyk,
and Ngoveni (2017), there are four cost-effective decisions available to management,
commonly referred to as the “four Ts” of risk management: terminate, tolerate, transfer, and
treat.
The first option, terminate, involves stopping the risky activity altogether. This is chosen
when the potential consequences are too severe to justify continuation. For example, if
delivery trucks are repeatedly hijacked in a high-crime zone, a company may decide to
terminate deliveries to that area and instead require customers to collect goods at a safer
location (Rogers et al., 2017).
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QUESTION 1
After risks are identified and vulnerabilities assessed, management must decide how
to respond in order to safeguard organisational assets. According to Rogers, Van
Schalkwyk, and Ngoveni (2017), there are four cost-effective decisions available to
management, commonly referred to as the “four Ts” of risk management: terminate,
tolerate, transfer, and treat.
The first option, terminate, involves stopping the risky activity altogether. This is
chosen when the potential consequences are too severe to justify continuation. For
example, if delivery trucks are repeatedly hijacked in a high-crime zone, a company
may decide to terminate deliveries to that area and instead require customers to
collect goods at a safer location (Rogers et al., 2017).
The second option, tolerate, is selected when the risk is minor and not worth the
cost of implementing controls. For instance, the occasional loss of office stationery
may be tolerated as the cost of control would outweigh the benefit. However,
tolerance must be balanced, as small losses can escalate if not monitored (Rogers
et al., 2017).
The third option, transfer, occurs when responsibility for the risk is shifted to a third
party. This is commonly done through insurance or outsourcing. For example,
contracting a cash-in-transit company to transport money reduces the organisation’s
direct exposure (Rogers et al., 2017).
Finally, treat involves implementing control measures to minimise risk. Examples
include installing CCTV, access control systems, and alarm-linked tagging devices in
retail environments. This option is often the most practical and ensures that threats
are managed at their root cause (Rogers et al., 2017).
QUESTION 2
Security Measures Costs