RSK2602
Assignment 1 Semester 2 2025
Unique Number:
Due Date: 20 August 2025
QUESTION 1
1.1 True – Operational failures from staff often stem from human error, intentional fraud, or
malicious acts such as data theft, all of which directly affect operational processes.
1.2 False – Technology and systems are internal drivers of operational risk, while external
drivers usually include regulatory changes, economic conditions, or natural disasters.
1.3 False – Operational risk does include human error, management failure, fraud, or control
weaknesses, but it excludes strategic and reputational risk, which are considered separate
categories.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
QUESTION 1
1.1 True – Operational failures from staff often stem from human error, intentional
fraud, or malicious acts such as data theft, all of which directly affect operational
processes.
1.2 False – Technology and systems are internal drivers of operational risk, while
external drivers usually include regulatory changes, economic conditions, or natural
disasters.
1.3 False – Operational risk does include human error, management failure, fraud, or
control weaknesses, but it excludes strategic and reputational risk, which are
considered separate categories.
1.4 False – Risk-indifferent attitudes accept increases in risk without demanding a
change in the risk/reward balance, which can be conducive to taking risks but
without consideration of potential benefits.
1.5 True – Self-insurance can be implemented through captive insurance
companies, which are owned and controlled by the insured organisation to cover its
own risks.
1.6 False – Risk appetite refers to the amount and type of risk an organisation is
willing to accept in pursuit of its objectives, not just what it is unwilling to lose.
1.7 False – The impact of risk exposures is typically rated as high, medium, or low,
while “probable,” “possible,” and “remote” are terms used for likelihood, not impact.
1.8 False – Risk transfer refers to shifting the financial consequences of a risk to a
third party, often via contracts or insurance, not the physical relocation of the risk.
1.9 False – The top-down approach starts with top management setting the tone and
framework, but it involves all organisational levels for effective risk management.
1.10 False – Value-at-Risk (VaR) measures the maximum expected loss over a
specific time horizon at a given confidence level under normal market conditions, not
extreme scenarios.
QUESTION 2
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
Assignment 1 Semester 2 2025
Unique Number:
Due Date: 20 August 2025
QUESTION 1
1.1 True – Operational failures from staff often stem from human error, intentional fraud, or
malicious acts such as data theft, all of which directly affect operational processes.
1.2 False – Technology and systems are internal drivers of operational risk, while external
drivers usually include regulatory changes, economic conditions, or natural disasters.
1.3 False – Operational risk does include human error, management failure, fraud, or control
weaknesses, but it excludes strategic and reputational risk, which are considered separate
categories.
Terms of use
By making use of this document you agree to:
Use this document as a guide for learning, comparison and reference purpose,
Terms of use
Not to duplicate, reproduce and/or misrepresent the contents of this document as your own work,
By making use of this document you agree to:
Use this document
Fully accept the consequences
solely as a guide forshould you plagiarise
learning, reference,or and
misuse this document.
comparison purposes,
Ensure originality of your own work, and fully accept the consequences should you plagiarise or misuse this document.
Comply with all relevant standards, guidelines, regulations, and legislation governing academic and written work.
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is" without any express or
implied representations or warranties. The author accepts no responsibility or liability for any actions taken based on the
information contained within this document. This document is intended solely for comparison, research, and reference purposes.
Reproduction, resale, or transmission of any part of this document, in any form or by any means, is strictly prohibited.
, +27 67 171 1739
QUESTION 1
1.1 True – Operational failures from staff often stem from human error, intentional
fraud, or malicious acts such as data theft, all of which directly affect operational
processes.
1.2 False – Technology and systems are internal drivers of operational risk, while
external drivers usually include regulatory changes, economic conditions, or natural
disasters.
1.3 False – Operational risk does include human error, management failure, fraud, or
control weaknesses, but it excludes strategic and reputational risk, which are
considered separate categories.
1.4 False – Risk-indifferent attitudes accept increases in risk without demanding a
change in the risk/reward balance, which can be conducive to taking risks but
without consideration of potential benefits.
1.5 True – Self-insurance can be implemented through captive insurance
companies, which are owned and controlled by the insured organisation to cover its
own risks.
1.6 False – Risk appetite refers to the amount and type of risk an organisation is
willing to accept in pursuit of its objectives, not just what it is unwilling to lose.
1.7 False – The impact of risk exposures is typically rated as high, medium, or low,
while “probable,” “possible,” and “remote” are terms used for likelihood, not impact.
1.8 False – Risk transfer refers to shifting the financial consequences of a risk to a
third party, often via contracts or insurance, not the physical relocation of the risk.
1.9 False – The top-down approach starts with top management setting the tone and
framework, but it involves all organisational levels for effective risk management.
1.10 False – Value-at-Risk (VaR) measures the maximum expected loss over a
specific time horizon at a given confidence level under normal market conditions, not
extreme scenarios.
QUESTION 2
Disclaimer
Great care has been taken in the preparation of this document; however, the contents are provided "as is"
without any express or implied representations or warranties. The author accepts no responsibility or
liability for any actions taken based on the information contained within this document. This document is
intended solely for comparison, research, and reference purposes. Reproduction, resale, or transmission
of any part of this document, in any form or by any means, is strictly prohibited.
