ASSIGNMENT 1 SEMESTER 1 2026
UNIQUE NO.
DUE DATE: 1 APRIL 2026
, Enterprise Risk Management - RSK2601
Assignment 1
Board Oversight of Emerging Cybersecurity Risks in Terms of King IV Principle
11
Introduction
Corporate governance is a system through which organisations are directed and
controlled in order to promote accountability, transparency, ethical leadership, and
sustainable value creation. In South Africa, corporate governance practices are largely
guided by the King IV Report on Corporate Governance for South Africa, which provides
principles and recommended practices aimed at improving organisational governance
and risk management. One of the most significant aspects of corporate governance in
the modern digital environment is the management of emerging risks, particularly
cybersecurity risks.
King IV Principle 11 emphasises that the governing body should govern risk in a way
that supports the organisation in setting and achieving its strategic objectives while
ensuring that risks are effectively managed (Institute of Directors Southern Africa,
2016). In organisations that depend on digital technologies such as mobile banking
applications, internet banking systems, and online investment platforms, cybersecurity
threats have become increasingly prevalent. These threats include hacking, data
breaches, identity theft, and ransomware attacks, which can compromise sensitive
organisational and customer information.
The case scenario involving a South African financial services company demonstrates
the consequences of weak cybersecurity governance. Although the board approved the
adoption of several digital platforms to improve service delivery and innovation, it
delegated all cybersecurity responsibilities to the IT department and failed to maintain
proper oversight. As a result, the company experienced a significant cyberattack that