,RSK4801 Assignment 2 (COMPLETE
ANSWERS) Semester 1 2025 – DUE July 2025;
100% correct solutions and explanations.
Operational Risk Management Report: Region Bank (Post-
COVID-19 Year)
Course Code: RSK4801
Introduction
Operational risk reporting is a critical function in the banking
sector, especially in the wake of global disruptions such as the
COVID-19 pandemic and climate-related crises. Region Bank,
like many financial institutions, faced heightened exposure to a
variety of operational risks in 2021, including cyber threats,
post-pandemic workforce issues, ESG challenges, and climate
change effects. The purpose of this report is to evaluate the
operational risk environment of Region Bank, explain the
benefits of a sound risk report, categorize risk factors, explain
the Risk and Control Self-Assessment (RCSA) process, and clarify
the roles of the three lines of defence within the bank’s
governance structure.
Question 1 (10 marks)
Discuss the benefits of a sound operational risk report
, A sound operational risk report provides the following benefits:
1. Informed Decision-Making
Accurate risk data supports effective management
decisions and enables the Bank to take proactive steps to
mitigate threats.
2. Regulatory Compliance
Helps ensure compliance with financial regulations,
reducing the risk of penalties and legal issues.
3. Stakeholder Assurance
Enhances transparency and builds trust among investors,
regulators, and customers by showing the Bank's
commitment to robust risk management.
4. Early Warning System
Identifies emerging threats such as ransomware or
climate-related risks, allowing for timely interventions.
5. Strategic Alignment
Ensures risk-taking is aligned with strategic objectives and
within the Bank's approved risk appetite.
6. Improved Risk Culture
Reinforces accountability and ethical standards by
embedding risk awareness throughout the organisation.
ANSWERS) Semester 1 2025 – DUE July 2025;
100% correct solutions and explanations.
Operational Risk Management Report: Region Bank (Post-
COVID-19 Year)
Course Code: RSK4801
Introduction
Operational risk reporting is a critical function in the banking
sector, especially in the wake of global disruptions such as the
COVID-19 pandemic and climate-related crises. Region Bank,
like many financial institutions, faced heightened exposure to a
variety of operational risks in 2021, including cyber threats,
post-pandemic workforce issues, ESG challenges, and climate
change effects. The purpose of this report is to evaluate the
operational risk environment of Region Bank, explain the
benefits of a sound risk report, categorize risk factors, explain
the Risk and Control Self-Assessment (RCSA) process, and clarify
the roles of the three lines of defence within the bank’s
governance structure.
Question 1 (10 marks)
Discuss the benefits of a sound operational risk report
, A sound operational risk report provides the following benefits:
1. Informed Decision-Making
Accurate risk data supports effective management
decisions and enables the Bank to take proactive steps to
mitigate threats.
2. Regulatory Compliance
Helps ensure compliance with financial regulations,
reducing the risk of penalties and legal issues.
3. Stakeholder Assurance
Enhances transparency and builds trust among investors,
regulators, and customers by showing the Bank's
commitment to robust risk management.
4. Early Warning System
Identifies emerging threats such as ransomware or
climate-related risks, allowing for timely interventions.
5. Strategic Alignment
Ensures risk-taking is aligned with strategic objectives and
within the Bank's approved risk appetite.
6. Improved Risk Culture
Reinforces accountability and ethical standards by
embedding risk awareness throughout the organisation.
