Exam (elaborations)
RSK2601 - Enterprise Risk Management Assignment 02 Year 2021
- Institution
- University Of South Africa (Unisa)
Exam (elaborations) RSK2601 - Enterprise Risk Management
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RSK2601ASSIGNMENT TWO
SEMESTER 01 & SEMESTER 02
YEAR 2021
, RSK 2601 (ENTERPRISE RISK MANAGEMENT)
ASSIGNEMENT 2 (FIRST SEMESTER)
Due date: 2 July 2021
Unique number: 694609
Question 1 – 2
- Financial risk relates to the exposure to adverse events that erode profitability and in extreme
cases might bring about business collapse
- It can include the failure of the financial systems, regulatory non-conformances, or compliance
issues as well as bad debt, adverse changes in exchange rates, overdependence on a single
supplier, loss of a key customer, loss of oversees investments and poor hedging decisions
- Country risk arises from the geographical distance of the market which can increase both the
cost and time that is associated with debt collection ‘
- Economic risk arises from the performance of the national economy within which a business
operates and the way its government elects to influence the economy and solve the basic
economic problem of scarce resources and competing needs. However, economic risk influences
the national macro – economics on the performance of an individual business
- Political risk is incurred through government in action or direct action of both local and national
government
- In action could be failure to issue permits as required, or government failure to enforce local
legal provisions
Question 2 – 2
Micro influences to a business includes the following aspects:
- Financial risk, operational risk, technological risk, project risk, Business ethics, health and safety
Question 3 - 3
- In implementing operational risk management in a business, external events that occur outside
the organisation must be taken into consideration. These events may require a business to have
response strategies in the form of change management and contingency plans
- NB: Change management means that the organisation must always adapt to the dynamic
environment
- Focuses on the requirements of a definition
- Integration plan
- A significant change management project usually warrants an integration plan to raise
awareness of the change in advance of the deployment of the solution and to ease its
introduction with the aid of familiarization and training sessions that are appropriate to each of
the disparate user groups
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