, 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
Statement: Operational failures caused by staff are driven by error, fraud and
data theft.
Answer: True ✅
Motivation:
Operational failures linked to staff behaviour often stem from human error
(unintentional mistakes, e.g., incorrect data entry), fraud (intentional
misrepresentation for personal gain), and data theft (unauthorised access, copying,
or sharing of confidential data). These three elements are well-recognised internal
drivers of operational risk, as they originate within the organisation and directly
involve employees. In operational risk frameworks such as Basel II/III, internal
fraud, external fraud, and human error are categorised as significant sources of
operational loss events.
1.2
Statement: Technology and systems are examples of external drivers of
operational risk management.
Answer: False ❌
Motivation:
Technology and systems are internal drivers of operational risk because they are
within the organisation’s control and form part of its infrastructure. External
drivers usually include regulatory changes, market competition,
macroeconomic shifts, political instability, and natural disasters—factors
beyond the organisation’s control. Failures in IT systems or outdated technology
are internal weaknesses that can lead to operational losses, but they are not
classified as “external” drivers.
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
Statement: Operational failures caused by staff are driven by error, fraud and
data theft.
Answer: True ✅
Motivation:
Operational failures linked to staff behaviour often stem from human error
(unintentional mistakes, e.g., incorrect data entry), fraud (intentional
misrepresentation for personal gain), and data theft (unauthorised access, copying,
or sharing of confidential data). These three elements are well-recognised internal
drivers of operational risk, as they originate within the organisation and directly
involve employees. In operational risk frameworks such as Basel II/III, internal
fraud, external fraud, and human error are categorised as significant sources of
operational loss events.
1.2
Statement: Technology and systems are examples of external drivers of
operational risk management.
Answer: False ❌
Motivation:
Technology and systems are internal drivers of operational risk because they are
within the organisation’s control and form part of its infrastructure. External
drivers usually include regulatory changes, market competition,
macroeconomic shifts, political instability, and natural disasters—factors
beyond the organisation’s control. Failures in IT systems or outdated technology
are internal weaknesses that can lead to operational losses, but they are not
classified as “external” drivers.
