RSK2602 Assignment 1 Semester 2 2025 (Answer Guide) - DUE 20 August 2025

RSK2602 Assignment 1 Semester 2 2025 (Answer Guide) - DUE 20 August 2025 Question 1 1.1 Operational failures caused by staff are driven by error, fraud and data theft. True – In operational risk management, staff-related failures often stem from unintentional mistakes (errors), intentional misconduct (fraud), and the deliberate or accidental leaking of confidential information (data theft). These human factors can disrupt operations, cause financial loss, and harm organisational reputation (Basel Committee, 2011). 1.2 Technology and systems are examples of external drivers of operational risk management. False – Technology and systems are generally considered internal drivers of operational risk because they are part of the organisation’s internal environment and infrastructure. External drivers are factors outside the organisation’s direct control, such as natural disasters, political instability, or economic shifts (Hull, 2018). 1.3 Operational risk is the risk of loss arising from human error, management failure and fraud or shortcomings in systems