RSK4802
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, lOMoARcPSD|62123117
UNIVERSITY EXAMINATIONS
January/February 2025
RSK4802
GOVERNANCE, RISK AND COMPLIANCE MANAGEMENT
100 Marks
Duration: 3 Hours
The paper consists of 14 pages, including this page.
This examination consists of Four (4) questions.
Answer ALL questions on the examination script in the space provided.
[TURN OVER]
Downloaded by Pied Zulu ()
, lOMoARcPSD|62123117
RSK4802
Date: 20 January 2025
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
Ensure you are connected to the internet in order to log into the Invigilator App and YOUR EXAM QR CODE & EXAM
scan this QR code. ACCESS CODE
If you encounter difficulty in scanning the QR code, you can alternatively enter the
Exam Access Code below the QR code to start the invigilation.
If you finish your assessment before the app timer has run out you need to press the
‘Finish Assessment’ button and follow instructions before you exit or minimise the app.
Scan the QR code at the start time of the assessment, unless otherwise specified by
your institution, note that you can only scan this QR code once.
The Invigilator App may request you to take photos of your examination script after the
assessment. Please follow the instructions on the app and take note that your
Exam Access Code: cb78e958
academic institution may still require you to submit your script on the relevant portal.
The QR code is only scannable for a limited time and it should therefore be
scanned as soon as possible after the assessment commencement time.
Keep the Invigilator App open on your smartphone for the full duration of the assessment. You are not allowed to minimise or leave the
app during your assessment.
You must adhere to the assessment time limit communicated to you by your institution. The timer displayed in the Invigilator may vary
depending on the start time of invigilation.
FURTHER GUIDANCE
If you only have one device you may access your assessment in the application by pressing the ‘Access Browser’ button in the top right
corner of your app.
Once the QR code is scanned, ensure your media volume is turned up and place your smartphone next to you.
The Invigilator App will notify you with a notification beep when you are required to action a photo request, which you should then
perform as soon as possible.
We recommend that you keep your smartphone on charge for the duration of the assessment.
Ensure you are connected to the internet when commencing invigilation. You also need to be connected to the internet at the end of the
assessment in order to upload the app data.
If your assessment has multiple online sections, tests or attempts, you should NOT finish the invigilation until your entire assessment
has been completed.
Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on +27 (0)73 505 8273
Downloaded by Pied Zulu ()
, lOMoARcPSD|62123117
3
RSK4802
JAN/FEB 2025
QUESTION 1
Did Steinhoff’s board structure contribute to the scandal?
Published 2 years ago on January 29, 2018, By Forbes Africa
The global retail group Steinhoff is reeling under allegations of accounting fraud. Since the allegations
surfaced last year the CEO of the multi-billion-dollar business, Markus Jooste, has fallen on his sword
and the company’s stock has been hammered, at one point losing about 90% in market value in a few
days.
Observers are calling for harsh punishment, including jail, for the culprits.
Early reports suggest that Steinhoff was involved in massive accounting fraud, including the
overstatement of the company’s financial position.
The company is listed on both the Johannesburg Stock Exchange in South Africa as well as the
Frankfurt Stock Exchange in Germany. With a primary listing in Frankfurt and an Amsterdam
corporate address, Steinhoff follows the Dutch corporate governance code.
Consistent with this code, Steinhoff has a two-tier board structure. This is made up of a management
board (comprised of four top executives) and a supervisory board (comprised of 9 non-executive
directors).
The point of the two-tier board structure is to ensure that the supervisory board is independent from the
executives who sit on the management board. The management board accounts to the supervisory
board, which accounts to the shareholders or to the company.
The two-tier board structure is favored in Western Europe. The US and UK prefer the one-tier – or
unitary board – structure, as does South Africa for historical reasons.
It appears that Steinhoff’s decision to opt for the two-tier board structure may have contributed to its
undoing. Natural holes in the structure, the biggest one being the fact that the management board
doesn’t always keep the supervisory board in the loop, combined with Steinhoff’s corporate culture,
which was anchored by a dominant personality, appear to have created accountability holes.
Two-tier versus one-tier structure
There are pros and cons to both systems.
One of the good things about the one-tier board system is that executive directors and non-executives’
directors sit together on a single board. Traditionally there would be two or three executive directors
(the CEO, chief financial officer, and the chief operating officer) sitting alongside most non-executive
directors.
[TURN OVER]
Downloaded by Pied Zulu ()
EXAM PACK
FOR ASSISTANCE WITH THIS MODULE +27 67 171 1739
, lOMoARcPSD|62123117
UNIVERSITY EXAMINATIONS
January/February 2025
RSK4802
GOVERNANCE, RISK AND COMPLIANCE MANAGEMENT
100 Marks
Duration: 3 Hours
The paper consists of 14 pages, including this page.
This examination consists of Four (4) questions.
Answer ALL questions on the examination script in the space provided.
[TURN OVER]
Downloaded by Pied Zulu ()
, lOMoARcPSD|62123117
RSK4802
Date: 20 January 2025
INSTRUCTIONS ON THE DAY OF ASSESSMENT:
Ensure you are connected to the internet in order to log into the Invigilator App and YOUR EXAM QR CODE & EXAM
scan this QR code. ACCESS CODE
If you encounter difficulty in scanning the QR code, you can alternatively enter the
Exam Access Code below the QR code to start the invigilation.
If you finish your assessment before the app timer has run out you need to press the
‘Finish Assessment’ button and follow instructions before you exit or minimise the app.
Scan the QR code at the start time of the assessment, unless otherwise specified by
your institution, note that you can only scan this QR code once.
The Invigilator App may request you to take photos of your examination script after the
assessment. Please follow the instructions on the app and take note that your
Exam Access Code: cb78e958
academic institution may still require you to submit your script on the relevant portal.
The QR code is only scannable for a limited time and it should therefore be
scanned as soon as possible after the assessment commencement time.
Keep the Invigilator App open on your smartphone for the full duration of the assessment. You are not allowed to minimise or leave the
app during your assessment.
You must adhere to the assessment time limit communicated to you by your institution. The timer displayed in the Invigilator may vary
depending on the start time of invigilation.
FURTHER GUIDANCE
If you only have one device you may access your assessment in the application by pressing the ‘Access Browser’ button in the top right
corner of your app.
Once the QR code is scanned, ensure your media volume is turned up and place your smartphone next to you.
The Invigilator App will notify you with a notification beep when you are required to action a photo request, which you should then
perform as soon as possible.
We recommend that you keep your smartphone on charge for the duration of the assessment.
Ensure you are connected to the internet when commencing invigilation. You also need to be connected to the internet at the end of the
assessment in order to upload the app data.
If your assessment has multiple online sections, tests or attempts, you should NOT finish the invigilation until your entire assessment
has been completed.
Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on +27 (0)73 505 8273
Downloaded by Pied Zulu ()
, lOMoARcPSD|62123117
3
RSK4802
JAN/FEB 2025
QUESTION 1
Did Steinhoff’s board structure contribute to the scandal?
Published 2 years ago on January 29, 2018, By Forbes Africa
The global retail group Steinhoff is reeling under allegations of accounting fraud. Since the allegations
surfaced last year the CEO of the multi-billion-dollar business, Markus Jooste, has fallen on his sword
and the company’s stock has been hammered, at one point losing about 90% in market value in a few
days.
Observers are calling for harsh punishment, including jail, for the culprits.
Early reports suggest that Steinhoff was involved in massive accounting fraud, including the
overstatement of the company’s financial position.
The company is listed on both the Johannesburg Stock Exchange in South Africa as well as the
Frankfurt Stock Exchange in Germany. With a primary listing in Frankfurt and an Amsterdam
corporate address, Steinhoff follows the Dutch corporate governance code.
Consistent with this code, Steinhoff has a two-tier board structure. This is made up of a management
board (comprised of four top executives) and a supervisory board (comprised of 9 non-executive
directors).
The point of the two-tier board structure is to ensure that the supervisory board is independent from the
executives who sit on the management board. The management board accounts to the supervisory
board, which accounts to the shareholders or to the company.
The two-tier board structure is favored in Western Europe. The US and UK prefer the one-tier – or
unitary board – structure, as does South Africa for historical reasons.
It appears that Steinhoff’s decision to opt for the two-tier board structure may have contributed to its
undoing. Natural holes in the structure, the biggest one being the fact that the management board
doesn’t always keep the supervisory board in the loop, combined with Steinhoff’s corporate culture,
which was anchored by a dominant personality, appear to have created accountability holes.
Two-tier versus one-tier structure
There are pros and cons to both systems.
One of the good things about the one-tier board system is that executive directors and non-executives’
directors sit together on a single board. Traditionally there would be two or three executive directors
(the CEO, chief financial officer, and the chief operating officer) sitting alongside most non-executive
directors.
[TURN OVER]
Downloaded by Pied Zulu ()
