, RSK2602 ASSIGNMENT 1 SEMESTER 2 2025 ANSWERS
DUE DATE 20 AUGUST 2025
QUESTION ONE (20 Marks)
1.1 – True
Operational failures caused by staff are indeed commonly driven by human error,
fraud, and data theft. These risks arise from internal actions—whether accidental or
intentional—and are a key focus of operational risk management. Employees may
unintentionally make mistakes or intentionally commit fraud, and both can result in
significant losses or reputational harm to the organisation.
1.2 – False
Technology and systems are not external drivers of operational risk—they are internal
components of an organisation’s infrastructure. External drivers refer to factors
outside the organisation’s control, such as economic conditions or regulatory
changes. Since technology and systems are developed, implemented, and managed
internally, they are considered internal risk factors.
1.3 – False
While operational risk does include human error, fraud, and system failures, it
excludes strategic and reputational risk. These are separate categories of risk.
Strategic risk relates to the failure of business strategies, and reputational risk
pertains to loss of stakeholder trust. Operational risk is narrower in definition and
focuses on internal processes and controls.
1.4 – True
A risk-indifferent attitude means an organisation does not demand higher returns for
taking on additional risk. This mindset usually avoids calculated risk-taking altogether,
leading to stagnation or missed opportunities for business growth. Such an approach
does not support proactive risk-based decision-making, which is essential for
innovation and competitiveness.
DUE DATE 20 AUGUST 2025
QUESTION ONE (20 Marks)
1.1 – True
Operational failures caused by staff are indeed commonly driven by human error,
fraud, and data theft. These risks arise from internal actions—whether accidental or
intentional—and are a key focus of operational risk management. Employees may
unintentionally make mistakes or intentionally commit fraud, and both can result in
significant losses or reputational harm to the organisation.
1.2 – False
Technology and systems are not external drivers of operational risk—they are internal
components of an organisation’s infrastructure. External drivers refer to factors
outside the organisation’s control, such as economic conditions or regulatory
changes. Since technology and systems are developed, implemented, and managed
internally, they are considered internal risk factors.
1.3 – False
While operational risk does include human error, fraud, and system failures, it
excludes strategic and reputational risk. These are separate categories of risk.
Strategic risk relates to the failure of business strategies, and reputational risk
pertains to loss of stakeholder trust. Operational risk is narrower in definition and
focuses on internal processes and controls.
1.4 – True
A risk-indifferent attitude means an organisation does not demand higher returns for
taking on additional risk. This mindset usually avoids calculated risk-taking altogether,
leading to stagnation or missed opportunities for business growth. Such an approach
does not support proactive risk-based decision-making, which is essential for
innovation and competitiveness.
