RSK4804
EXAM PACK
Recent exam questions and answers
Summarised study notes
Exam tips and guidelines
+27 81 278 3372
DISCLAIMER & TERMS OF USE
1. Educational Aid: These study notes are designed to serve as educational aids and should not be considered as a
substitute for individual research, critical thinking, or professional guidance. Students are encouraged to
conduct their own extensive research and consult with their instructors or academic advisors for specific
assignment requirements.
2. Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the
information provided in these study notes, the seller cannot guarantee the completeness or correctness of all
the content. It is the responsibility of the buyer to verify the accuracy of the information and use their own
judgment when applying it to their assignments.
3. Academic Integrity: It is crucial for students to uphold academic integrity and adhere to their institution's
policies and guidelines regarding plagiarism, citation, and referencing. These study notes should be used as a
tool for learning and inspiration, but any direct reproduction of the content without proper acknowledgment and
citation may constitute academic misconduct.
4. Limited Liability: The seller of these study notes shall not be held liable for any direct or indirect damages,
losses, or consequences arising from the use of the notes. This includes, but is not limited to, poor grades,
academic penalties, or any other negative outcomes resulting from the application or misuse of the information
provide
]
, lOMoARcPSD|22437965
CONFIDENTIAL
UNIVERSITY EXAMINATIONS
January/February 2024
RSK4804
CREDIT RISK MANAGEMENT
100 marks
Duration: 3 hours
EXAMINERS:
FIRST: MR S MOLEFE
SECOND: MR M NXUMALO
EXTERNAL: DR H Le ROUX
This assessment consists of 26 pages. Please remember to scan the QR code for the Invigilator App.
Instructions:
1. Any battery-operated pocket calculator may be used. You may use a Sharp EL733-A, Sharp
EL738, HP12C or HP10BII financial calculator.
2. No rough work will be marked.
3. Use sentence case in Arial 10pt.
4. This is closed book examination.
Downloaded by Corona Virus ()
, lOMoARcPSD|22437965
RSK4804
Date: 5 February 2024
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.
Unless otherwise specified by your institution, note that you can only scan this QR
code once. If your assessment has multiple online sections, tests or attempts, you
should NOT finish the invigilation until your entire assessment has been completed.
Only scan the QR code when the assessment formally commences.
The QR code is only scannable for a limited time and it should therefore be
scanned as soon as possible to start the invigilation.
Exam Access Code: 9d2aff25
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 request, which you should then perform.
We recommend that you keep your smartphone on charge for the duration of the assessment.
If you only have one device you may access your assessment in the application by pressing the ‘Access Exam’ button in the top right
corner of your app.
Keep the Invigilator App open on your cell phone for the full duration of the assessment. You are not allowed to minimise or
leave the app.
Ensure you are connected to the internet in order to commence the invigilation as well as at the end of the assessment. No internet
connection is required during the assessment.
You have to adhere to the assessment time limit communicated to you by your institution as the time displayed in the Invigilator
App could differ from the time allocated to complete your assessment.
You can click the "Finish Assessment" button in the app if you finish your assessment early.
If you are performing a written or Scan-and-Upload assessment:
The Invigilator App may request you to take a picture of every page of your answer sheet at the end of the assessment. Unless
otherwise specified by your institution, this does NOT replace the normal upload of your script to your institutions online
portal
After completing invigilation and following all app instructions, you must upload your Invigilation App data. If however there is a delay in
the upload of the app data at the end of the assessment, you should prioritise the upload of your script to your university portal and you
can temporarily minimise the app to do so. Uploading of app data is not time sensitive and you can come back and do it after you have
successfully uploaded your script to the exam portal.
Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on 073 505 8273.
Downloaded by Corona Virus ()
, lOMoARcPSD|22437965
CONFIDENTIAL
Page 2 of 26 RSK4804
January/February 2024
QUESTION 1 [10]
When anyone is planning to acquire, keep or sell shares in a business, the financial health
thereof is of the utmost importance. According to Prof Edward Altman, the Z-score can be used
to predict with 95% accuracy the risk of a business going bankrupt within a year, and with 72%
accuracy, within two years. Banks use similar information to make lending decisions. As a credit
analyst for Saamtrek Bank, use the information below to calculate the bankruptcy risk of
Matimba Transport (Pty) Ltd using Altman’s Z-score, and then give your recommendation.
The following ratios are completed for Matimba Transport (Pty) Ltd for FY 2021:
o working capital to total assets ratio = 25% - X1
o retained earnings to total assets ratio = 30% - X2
o profit before interest and tax to total assets = 32% - X3
o market value of equity to book value of debt = 135% - X4
o sales to total assets = 250% - X5
[TURN OVER]
Downloaded by Corona Virus ()
EXAM PACK
Recent exam questions and answers
Summarised study notes
Exam tips and guidelines
+27 81 278 3372
DISCLAIMER & TERMS OF USE
1. Educational Aid: These study notes are designed to serve as educational aids and should not be considered as a
substitute for individual research, critical thinking, or professional guidance. Students are encouraged to
conduct their own extensive research and consult with their instructors or academic advisors for specific
assignment requirements.
2. Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the
information provided in these study notes, the seller cannot guarantee the completeness or correctness of all
the content. It is the responsibility of the buyer to verify the accuracy of the information and use their own
judgment when applying it to their assignments.
3. Academic Integrity: It is crucial for students to uphold academic integrity and adhere to their institution's
policies and guidelines regarding plagiarism, citation, and referencing. These study notes should be used as a
tool for learning and inspiration, but any direct reproduction of the content without proper acknowledgment and
citation may constitute academic misconduct.
4. Limited Liability: The seller of these study notes shall not be held liable for any direct or indirect damages,
losses, or consequences arising from the use of the notes. This includes, but is not limited to, poor grades,
academic penalties, or any other negative outcomes resulting from the application or misuse of the information
provide
]
, lOMoARcPSD|22437965
CONFIDENTIAL
UNIVERSITY EXAMINATIONS
January/February 2024
RSK4804
CREDIT RISK MANAGEMENT
100 marks
Duration: 3 hours
EXAMINERS:
FIRST: MR S MOLEFE
SECOND: MR M NXUMALO
EXTERNAL: DR H Le ROUX
This assessment consists of 26 pages. Please remember to scan the QR code for the Invigilator App.
Instructions:
1. Any battery-operated pocket calculator may be used. You may use a Sharp EL733-A, Sharp
EL738, HP12C or HP10BII financial calculator.
2. No rough work will be marked.
3. Use sentence case in Arial 10pt.
4. This is closed book examination.
Downloaded by Corona Virus ()
, lOMoARcPSD|22437965
RSK4804
Date: 5 February 2024
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.
Unless otherwise specified by your institution, note that you can only scan this QR
code once. If your assessment has multiple online sections, tests or attempts, you
should NOT finish the invigilation until your entire assessment has been completed.
Only scan the QR code when the assessment formally commences.
The QR code is only scannable for a limited time and it should therefore be
scanned as soon as possible to start the invigilation.
Exam Access Code: 9d2aff25
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 request, which you should then perform.
We recommend that you keep your smartphone on charge for the duration of the assessment.
If you only have one device you may access your assessment in the application by pressing the ‘Access Exam’ button in the top right
corner of your app.
Keep the Invigilator App open on your cell phone for the full duration of the assessment. You are not allowed to minimise or
leave the app.
Ensure you are connected to the internet in order to commence the invigilation as well as at the end of the assessment. No internet
connection is required during the assessment.
You have to adhere to the assessment time limit communicated to you by your institution as the time displayed in the Invigilator
App could differ from the time allocated to complete your assessment.
You can click the "Finish Assessment" button in the app if you finish your assessment early.
If you are performing a written or Scan-and-Upload assessment:
The Invigilator App may request you to take a picture of every page of your answer sheet at the end of the assessment. Unless
otherwise specified by your institution, this does NOT replace the normal upload of your script to your institutions online
portal
After completing invigilation and following all app instructions, you must upload your Invigilation App data. If however there is a delay in
the upload of the app data at the end of the assessment, you should prioritise the upload of your script to your university portal and you
can temporarily minimise the app to do so. Uploading of app data is not time sensitive and you can come back and do it after you have
successfully uploaded your script to the exam portal.
Should you encounter any technical difficulty, please WhatsApp The Invigilator Helpdesk on 073 505 8273.
Downloaded by Corona Virus ()
, lOMoARcPSD|22437965
CONFIDENTIAL
Page 2 of 26 RSK4804
January/February 2024
QUESTION 1 [10]
When anyone is planning to acquire, keep or sell shares in a business, the financial health
thereof is of the utmost importance. According to Prof Edward Altman, the Z-score can be used
to predict with 95% accuracy the risk of a business going bankrupt within a year, and with 72%
accuracy, within two years. Banks use similar information to make lending decisions. As a credit
analyst for Saamtrek Bank, use the information below to calculate the bankruptcy risk of
Matimba Transport (Pty) Ltd using Altman’s Z-score, and then give your recommendation.
The following ratios are completed for Matimba Transport (Pty) Ltd for FY 2021:
o working capital to total assets ratio = 25% - X1
o retained earnings to total assets ratio = 30% - X2
o profit before interest and tax to total assets = 32% - X3
o market value of equity to book value of debt = 135% - X4
o sales to total assets = 250% - X5
[TURN OVER]
Downloaded by Corona Virus ()
