[Date]
RSK4803
Assignment 3 2024 -
DUE 7 October 2024
QUESTIONS WITH COMPLETE ANSWERS
,RSK4803 Assignment 3 2024 - DUE 7 October 2024
Question 1 22 marks
1.1 In a management meeting, it was decided that the company needs
to establish the risk management function. However, there were
different views about the main objective of risk management. 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 Eskom, South Africa’s largest electricity provider, navigates a
challenging and promising environment in its mission to deliver
, reliable and sustainable energy to the nation. The utility’s handling of
debts is crucial for its financial stability, operational efficiency, and
environmental impact. Despite these factors, Eskom’s decisions
regarding liabilities play a pivotal role in its financial stability.
Eskom's total liabilities increased from R77,000 million in 2006 to
R480,000 million in 2016. Given that the liabilities in 2012 were 50%
higher than that in 2006, the total liabilities for 2012 would be
calculated as follows: (2) a. R115,500 million b. R480,000 million c.
R38,500 million d. R557,000 million
1.3 Which of the following is not an example of unreimbursed losses?
(2) a. Underinsurance b. Franchise deductibles. c. Losses resulting
from risks with available insurance cover d. Uninsured Losses, either
intentionally or unintentionally Page 2 of 7 RSK4803 Tutorial Letter
102 © UNISA 2023
1.4 Comair Limited, a South African airline, operated scheduled
services domestically as a British Airways franchisee and under its
own budget brand, K. The airline faced various challenges, including
fluctuating fuel prices, regulatory requirements, weather disruptions,
and passenger demand variability. These challenges directly affected
flight schedules, operational costs, and customer experiences. During
a particular disruption, around 191,000 passengers were affected by
flight cancellations and 78,000 passengers experienced delays at
Comair during the disruption. If Comair had initially scheduled flights
RSK4803
Assignment 3 2024 -
DUE 7 October 2024
QUESTIONS WITH COMPLETE ANSWERS
,RSK4803 Assignment 3 2024 - DUE 7 October 2024
Question 1 22 marks
1.1 In a management meeting, it was decided that the company needs
to establish the risk management function. However, there were
different views about the main objective of risk management. 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 Eskom, South Africa’s largest electricity provider, navigates a
challenging and promising environment in its mission to deliver
, reliable and sustainable energy to the nation. The utility’s handling of
debts is crucial for its financial stability, operational efficiency, and
environmental impact. Despite these factors, Eskom’s decisions
regarding liabilities play a pivotal role in its financial stability.
Eskom's total liabilities increased from R77,000 million in 2006 to
R480,000 million in 2016. Given that the liabilities in 2012 were 50%
higher than that in 2006, the total liabilities for 2012 would be
calculated as follows: (2) a. R115,500 million b. R480,000 million c.
R38,500 million d. R557,000 million
1.3 Which of the following is not an example of unreimbursed losses?
(2) a. Underinsurance b. Franchise deductibles. c. Losses resulting
from risks with available insurance cover d. Uninsured Losses, either
intentionally or unintentionally Page 2 of 7 RSK4803 Tutorial Letter
102 © UNISA 2023
1.4 Comair Limited, a South African airline, operated scheduled
services domestically as a British Airways franchisee and under its
own budget brand, K. The airline faced various challenges, including
fluctuating fuel prices, regulatory requirements, weather disruptions,
and passenger demand variability. These challenges directly affected
flight schedules, operational costs, and customer experiences. During
a particular disruption, around 191,000 passengers were affected by
flight cancellations and 78,000 passengers experienced delays at
Comair during the disruption. If Comair had initially scheduled flights
