RSK2601 MCQ Latest exam pack questions and answers and summarized notes for exam preparation. Updated for 2025. For assistance call or W.h.a.t.s.a.p.p us on +/ 2/ 5/ 4 /7 /7 /9 /5 /4 /0 /1 /3 /2 .
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
RSK2601 TEST BANK
Question 1
Which one of the following is a benefit of effective risk and opportunity management?
1) Improved profit certainty
2) Increased shareholder value
3) Increased stakeholder confidence Correct option 3
4) Lower economic returns
Explanation
Improved cost certainty, sustainable shareholder value, increased stakeholder confidence and
higher economic returns are all benefits of effective risk and opportunity management.
Question 2
The board’s role should be to steer the corporation towards corporate governance policies that
support …
1) long-term sustainable growth in shareholder value Correct option 1
2) short-term sustainable growth in shareholder value
3) short-term sustainable growth in stakeholder value
4) long-term sustainable growth in stakeholder value
Explanation
The board’s role should be to steer the corporation towards corporate governance policies that
support long-term sustainable growth in shareholder value.
Question 3
Which one of the following statements is not considered a benefit of Enterprise Risk Management
(ERM)?
1) Minimise operational surprises and losses.
2) Enhance corporate governance.
3) Comply with relevant legal and regulatory requirements.
4) Align return appetite and strategy. Correct option 4
Explanation
Benefits of Enterprise Risk Management (ERM) include minimisation of operational surprises and
losses, enhancing corporate governance, complying with relevant legal and regulatory requirements
and aligning risk appetite and strategy. The determination of the risk appetite of a business is vital
in the ERM process because it shows how much risk the business is willing to take on.
Question 4
The King II report moved away from the … bottom-line principle to a … bottom-line principle.
1) double - triple
2) single - triple Correct option 2
3) single - double
4) double – single
1
, Explanation
The King II report moved away from the single bottom-line principle to a triple bottom-line principle.
Question 5
As of June 2010, companies listed on the JSE are expected to comply with …
1) King I
2) King II
3) King III Correct option 3
4) King IV
Explanation
As of June 2010, companies listed on the JSE are expected to comply with King III.
Question 6
King III applies to …
a) All listed companies on the JSE
b) Banks
c) Financial institutions
d) Insurance institutions
Choose the correct option.
1) a, b, c, d
2) a, b, c
3) a, b, d Correct option 3
4) a, b
Explanation
King III applies to all listed companies on the JSE, banks, financial and insurance institutions.
Question 7
In financial ratio analysis, efficiency ratios …
1) measures the degree of success of the management in achieving their primary purpose of
creating wealth for their owners
2) are also known as activity ratios correct option 2
3) examine the relationship between liquid resources held and creditors due for payment in
the near future
4) assess the returns and performance of shares held in a particular business
Explanation
In financial ratio analysis, efficiency ratios are also known as activity ratios.
Question 8
A GAP analysis …
1) is used to list all the risks that were identified on previous projects within the business
2) is a list that categorises each risk into a type of area
3) can be used to identify the main risks linked to a certain activity or project of the business
Correct option 3
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LIBRARYpro. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R51,25. You're not tied to anything after your purchase.