, RSK4801 Assignment 2 (COMPLETE ANSWERS)
Semester 1 2025 - DUE July 2025 ; 100% TRUSTED
Complete, trusted solutions and explanations.
Question 1 (10 marks)
Discuss the benefits of a sound operational risk report.
A sound operational risk report plays a vital role in the overall risk
management framework of a bank. It enables leadership to make
informed decisions, ensures compliance with regulatory standards, and
helps safeguard the bank’s reputation and financial stability, the key
benefits include:
1. Enhanced Decision-Making and Strategic Alignment
An effective operational risk report supports management in making
risk-informed decisions. It highlights current and emerging risks, such as
those from technological threats, ESG challenges, and post-pandemic
pressures. This alignment allows the Bank to allocate resources and
adjust strategy in line with its risk appetite, promoting operational
resilience and strategic goal achievement.
2. Improved Risk Awareness and Culture
A well-prepared report reinforces a strong risk management culture by
creating awareness of key operational risks and their implications. This
culture, embedded through training and clear communication, ensures
that staff at all levels understand their role in managing risk and uphold
ethical and compliant behavior.
Semester 1 2025 - DUE July 2025 ; 100% TRUSTED
Complete, trusted solutions and explanations.
Question 1 (10 marks)
Discuss the benefits of a sound operational risk report.
A sound operational risk report plays a vital role in the overall risk
management framework of a bank. It enables leadership to make
informed decisions, ensures compliance with regulatory standards, and
helps safeguard the bank’s reputation and financial stability, the key
benefits include:
1. Enhanced Decision-Making and Strategic Alignment
An effective operational risk report supports management in making
risk-informed decisions. It highlights current and emerging risks, such as
those from technological threats, ESG challenges, and post-pandemic
pressures. This alignment allows the Bank to allocate resources and
adjust strategy in line with its risk appetite, promoting operational
resilience and strategic goal achievement.
2. Improved Risk Awareness and Culture
A well-prepared report reinforces a strong risk management culture by
creating awareness of key operational risks and their implications. This
culture, embedded through training and clear communication, ensures
that staff at all levels understand their role in managing risk and uphold
ethical and compliant behavior.
