RSK4803 Assignment 3 Semester 2 2024. Question 1 22 marks 1.1 In a management meeting, it was decided that the company needs to establish the risk management function. However, there were different views about the main objective of risk management. Choose the correct view about the responsibility ...
1.1. In a management meeting, it was decided that the company needs to establish the risk
management function. However, there were different views about the main objective of risk
management.
A)The chief executive officer held that the responsibility of risk management would be to assess,
control and finance critical risks facing the organisation and report the outcomes to the board.
B)The chief financial officer stated that the responsibility of risk management would be to assess
critical risks facing the organisation and communicate the assessment to management and the
board.
C)The human resources director argued that the responsibility of risk management would be to
compile a report on all risk exposures of the organisation for reporting to the board.
D)The compliance officer emphasised that the responsibility of risk management would be to
provide assurance about the management of risks to stakeholders of the organisation.
1.2. Eskom, South Africa’s largest electricity provider, navigates a challenging and promising
environment in its mission to deliver reliable and sustainable energy to the nation. The utility’s
handling of debts is crucial for its financial stability, operational efficiency, and environmental
impact. Despite these factors, Eskom’s decisions regarding liabilities play a pivotal role in its
financial stability. Eskom's total liabilities increased from R77,000 million in 2006 to R480,000
million in 2016. Given that the liabilities in 2012 were 50% higher than that in 2006, the total
liabilities for 2012 would be calculated as follows:
A)R115,500 million
B)R480,000 million
C)R38,500 million
D)R557,000 million
1.3. Which of the following is not an example of unreimbursed losses?
A)Underinsurance
B)Franchise deductibles.
C)Losses resulting from risks with available insurance cover
D)Uninsured Losses, either intentionally or unintentionally
1.4. Comair Limited, a South African airline, operated scheduled services domestically as a
British Airways franchisee and under its own budget brand, Kulula.com. The airline faced various
challenges, including fluctuating fuel prices, regulatory requirements, weather disruptions, and
passenger demand variability. These challenges directly affected flight schedules, operational
costs, and customer experiences. During a particular disruption, around 191,000 passengers were
affected by flight cancellations and 78,000 passengers experienced delays at Comair during the
disruption. If Comair had initially scheduled flights for 300,000 passengers, what percentage of
passengers were not directly affected by cancellations or delays?
A)10%
B)11%
C)31%
D)32%
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