, RSK2602 Assignment 1
Semester 2 2025
DUE 20 August 2025
Use this document as a guide and for references to answer your assignment
Question 1
1.1 Operational failures caused by staff are driven by error, fraud and data theft.
True/False
True – Staff-related operational failures can indeed be caused by error, fraud, and
data theft.
1.2 Technology and systems are examples of external drivers of operational risk
management.True/False
False – Technology and systems are typically considered internal drivers, not
external ones.
1.3 Operational risk is the risk of loss arising from human error, management
failure and fraud or shortcomings in systems or controls. This would include
strategic and reputational risk.True/False
False – The given definition of operational risk is correct up to systems/controls
failures, but strategic and reputational risk are usually treated as separate
categories, not part of operational risk.
1.4 Risk-indifferent requires no changes in the risk/reward balance in return for an
increase in risk. This attitude is usually not conducive for taking any risks to
enhance the business.
True/False
True – A risk-indifferent attitude means no change in risk/reward balance is
expected, which is generally not conducive for proactive business growth.
Semester 2 2025
DUE 20 August 2025
Use this document as a guide and for references to answer your assignment
Question 1
1.1 Operational failures caused by staff are driven by error, fraud and data theft.
True/False
True – Staff-related operational failures can indeed be caused by error, fraud, and
data theft.
1.2 Technology and systems are examples of external drivers of operational risk
management.True/False
False – Technology and systems are typically considered internal drivers, not
external ones.
1.3 Operational risk is the risk of loss arising from human error, management
failure and fraud or shortcomings in systems or controls. This would include
strategic and reputational risk.True/False
False – The given definition of operational risk is correct up to systems/controls
failures, but strategic and reputational risk are usually treated as separate
categories, not part of operational risk.
1.4 Risk-indifferent requires no changes in the risk/reward balance in return for an
increase in risk. This attitude is usually not conducive for taking any risks to
enhance the business.
True/False
True – A risk-indifferent attitude means no change in risk/reward balance is
expected, which is generally not conducive for proactive business growth.
