, RSK2602 Assignment 1 Semester 2 2025 – DUE 20 August 2025; 100%
CORRECT AND TRUSTED SOLUTIONS
Question 1
Evaluate the accuracy of each of the following statements. Indicate whether you
consider the statement accurate (True) or not (False) and provide a full motivation
for your answer.
Note: No mark will be awarded for a True or False answer without a motivation.
1.1 Operational failures caused by staff are driven by error, fraud and data
theft.
Answer: True ✅
Motivation:
Operational failures in organisations can indeed be caused by human factors,
which are among the biggest contributors to operational risk. These include:
Error – unintentional mistakes such as miscalculations, data entry errors, or
failure to follow procedures.
Fraud – deliberate manipulation, misrepresentation, or theft for personal gain.
Data theft – intentional or accidental leakage of sensitive data.
These are recognised categories in operational risk frameworks such as Basel
II/III. While there are other causes (e.g., system failures, external events), staff-
driven operational failures commonly stem from these three core factors.
1.2 Technology and systems are examples of external drivers of operational
risk management.
Answer: False ❌
Motivation:
Technology and systems are considered internal drivers of operational risk
because they are within the organisation’s control and are part of its infrastructure.
External drivers include regulatory changes, economic conditions, political
instability, or natural disasters — things the organisation cannot control
directly.
Internal drivers like IT systems, processes, and internal controls are part of
the organisation’s operational risk management responsibilities. Therefore,
classifying technology and systems as external drivers is inaccurate.
CORRECT AND TRUSTED SOLUTIONS
Question 1
Evaluate the accuracy of each of the following statements. Indicate whether you
consider the statement accurate (True) or not (False) and provide a full motivation
for your answer.
Note: No mark will be awarded for a True or False answer without a motivation.
1.1 Operational failures caused by staff are driven by error, fraud and data
theft.
Answer: True ✅
Motivation:
Operational failures in organisations can indeed be caused by human factors,
which are among the biggest contributors to operational risk. These include:
Error – unintentional mistakes such as miscalculations, data entry errors, or
failure to follow procedures.
Fraud – deliberate manipulation, misrepresentation, or theft for personal gain.
Data theft – intentional or accidental leakage of sensitive data.
These are recognised categories in operational risk frameworks such as Basel
II/III. While there are other causes (e.g., system failures, external events), staff-
driven operational failures commonly stem from these three core factors.
1.2 Technology and systems are examples of external drivers of operational
risk management.
Answer: False ❌
Motivation:
Technology and systems are considered internal drivers of operational risk
because they are within the organisation’s control and are part of its infrastructure.
External drivers include regulatory changes, economic conditions, political
instability, or natural disasters — things the organisation cannot control
directly.
Internal drivers like IT systems, processes, and internal controls are part of
the organisation’s operational risk management responsibilities. Therefore,
classifying technology and systems as external drivers is inaccurate.
