,RSK4801 Assignment 4 (COMPLETE ANSWERS) 2024 -
DUE 4 October 2024 ; 100% TRUSTED Complete, trusted
solutions and explanations.
Since 2020, many incidents and events have caused
organisations to adopt a focused approach towards risk
management and the role of risk managers. Examples of these
events are the COVID-19 pandemic and its severe effects on
many countries, economies, and businesses. South Africa was
not excluded from the pandemic and was further hampered by
severe power interruptions and inadequate service delivery.
These are all risk-related incidents/events involving risk
managers to assist in the management thereof. According to an
article in Enterprise Risk Magazine (2023), uncertainty also
boosted the profile and role of risk managers. Large-scale risks
are happening more often, which requires sound risk
management to cope with the increasingly unclear business and
physical environments. As such, it seems imperative that the
role of risk managers and appropriate risk management tools is
clear. The classic three lines of defence in the risk governance
model endeavour to demarcate the various roles regarding the
management of risks. Although there are many issues
surrounding this model, it provides a foundational guideline for
the roles of the main role-players in risk management.
Regarding the tools for operational risk management, it seems
that there are concerns over the predictive powers of key risk
indicators (KRIs), the value of risk and control self-assessments
(RCSAs), and the subjectivity of scenario analysis to manage
operational risks (Enterprise Risk Magazine, 2023). In addition,
, embedding an operational risk management framework is
becoming essential. However, it appears that there is only a
vague understanding of the exact role of a risk manager.
Furthermore, according to Enterprise Risk Magazine (2023),
excessive effort is being expended on issues that generate too
little value when using operational risk management tools. For
example, RCSAs are tools that should provide value to
organisations by identifying the primary inherent risks, which
can be used for analysing risk scenarios and determining and
managing KRIs. In addition, RCSAs can determine control
weaknesses in managing the residual risks effectively.
Enterprise Risk Magazine (2023) mentioned that organisations
should focus their RCSA efforts on the effectiveness and
adequacy of controls in mitigating low-, medium-
frequency/medium and high-impact operational risks. Risks
leading to high-frequency and low-impact operational loss
incidents should be managed by means of more real-time
monitoring of KRIs. This could ensure obtaining value from the
RCSA activity. According to the Institute of Risk Management
(IRM, 2023), the year 2024 will see certain risk events escalate,
requiring a more “aggressive” and formal approach by risk
managers to assist organisations in coping with these risk events.
Some of these risks, specifically for South Africa, were
identified by various risk managers as follows: • future disasters,
such as ongoing floods, global warming, and drought • the
constant negative influence of the energy crisis on the economy
• the slow pace of sustainability and investment projects • poor
maintenance and development of infrastructure • increasing
cyber risks and cybercrimes • inadequate handling of fraud and
