RSK4801
Assignment 2 2025
Unique number:
Due Date: July 2025
This document includes:
Helpful answers and guidelines
Detailed explanations and/ or calculations
References
Connect with the tutor on
+27 68 812 0934
,© Study Shack 2025. All rights Reserved +27 68 812 0934
, QUESTION 1
A sound operational risk report is a crucial management tool that provides clear,
accurate, and timely insights into the organisation’s exposure to operational risks. Its
primary benefit lies in supporting informed decision-making by enabling management
and stakeholders to identify current and emerging risks, evaluate controls, and
implement appropriate mitigation strategies (Blunden & Thirlwell, 2013, p. 276).
1. Enhanced Decision-Making and Risk Response
Operational risk reports enable leaders to make data-driven decisions by
summarising complex risk data in an understandable manner. A well-structured
report highlights key risk indicators (KRIs), incidents, losses, and control
weaknesses, allowing the Bank to prioritise risk responses where they are most
needed. For example, the report at Region Bank should highlight severe risks such
as ransomware attacks (rated 5;5) and ESG resourcing shortfalls (3;3) to prompt
immediate remedial actions (Young, 2021, p. 186).
2. Targeted Reporting for Various Audiences
Operational risk information must be tailored to meet the needs of different
stakeholders. Executives, board members, and compliance officers require
summaries of key issues, while operational staff may need more granular insights. A
well-designed report differentiates between strategic-level and operational-level
reporting, improving communication across the organisation (Blunden & Thirlwell,
2013, p. 283).
3. Early Identification of Emerging Risks
Sound risk reports allow the organisation to detect trends, patterns, and emerging
threats early. By integrating quantitative and qualitative data, such as risk incidents,
employee feedback, and KRI thresholds, the report helps the Bank proactively
respond to threats before they escalate (Young, 2021, p. 189).
For instance, post-pandemic psychological effects on staff (rated 2;2) and
technological instability (4;3) can be monitored through employee wellness metrics
and system uptime reports, allowing for timely interventions such as mental health
support and IT infrastructure upgrades.
© Study Shack 2025. All rights Reserved +27 68 812 0934
Assignment 2 2025
Unique number:
Due Date: July 2025
This document includes:
Helpful answers and guidelines
Detailed explanations and/ or calculations
References
Connect with the tutor on
+27 68 812 0934
,© Study Shack 2025. All rights Reserved +27 68 812 0934
, QUESTION 1
A sound operational risk report is a crucial management tool that provides clear,
accurate, and timely insights into the organisation’s exposure to operational risks. Its
primary benefit lies in supporting informed decision-making by enabling management
and stakeholders to identify current and emerging risks, evaluate controls, and
implement appropriate mitigation strategies (Blunden & Thirlwell, 2013, p. 276).
1. Enhanced Decision-Making and Risk Response
Operational risk reports enable leaders to make data-driven decisions by
summarising complex risk data in an understandable manner. A well-structured
report highlights key risk indicators (KRIs), incidents, losses, and control
weaknesses, allowing the Bank to prioritise risk responses where they are most
needed. For example, the report at Region Bank should highlight severe risks such
as ransomware attacks (rated 5;5) and ESG resourcing shortfalls (3;3) to prompt
immediate remedial actions (Young, 2021, p. 186).
2. Targeted Reporting for Various Audiences
Operational risk information must be tailored to meet the needs of different
stakeholders. Executives, board members, and compliance officers require
summaries of key issues, while operational staff may need more granular insights. A
well-designed report differentiates between strategic-level and operational-level
reporting, improving communication across the organisation (Blunden & Thirlwell,
2013, p. 283).
3. Early Identification of Emerging Risks
Sound risk reports allow the organisation to detect trends, patterns, and emerging
threats early. By integrating quantitative and qualitative data, such as risk incidents,
employee feedback, and KRI thresholds, the report helps the Bank proactively
respond to threats before they escalate (Young, 2021, p. 189).
For instance, post-pandemic psychological effects on staff (rated 2;2) and
technological instability (4;3) can be monitored through employee wellness metrics
and system uptime reports, allowing for timely interventions such as mental health
support and IT infrastructure upgrades.
© Study Shack 2025. All rights Reserved +27 68 812 0934
