RSK4803 Assignment 3 (Detailed Answers) Due 7 October 2024

RSK4803

Assignment 3

DUE 7 October 2024

, Question 1


1.1 Choose the correct view about the responsibility of risk management.
Answer:
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.
𝟏. 𝟐 𝑪𝒂𝒍𝒄𝒖𝒍𝒂𝒕𝒆 𝒕𝒉𝒆 𝒕𝒐𝒕𝒂𝒍 𝒍𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔 𝒇𝒐𝒓 𝟐𝟎𝟏𝟐.
𝑇𝑜 𝑓𝑖𝑛𝑑 𝑡ℎ𝑒 𝑡𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑓𝑜𝑟 2012, 𝑤𝑒 𝑐𝑎𝑙𝑐𝑢𝑙𝑎𝑡𝑒 𝑖𝑡 𝑏𝑎𝑠𝑒𝑑 𝑜𝑛 𝑡ℎ𝑒 2006 𝑣𝑎𝑙𝑢𝑒:
• 𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑖𝑛 2006 = 𝑅77,000 𝑚𝑖𝑙𝑙𝑖𝑜𝑛
• 50% 𝑖𝑛𝑐𝑟𝑒𝑎𝑠𝑒 𝑖𝑛 2012 = 0.5 ∗ 𝑅77,000 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 = 𝑅38,500 𝑚𝑖𝑙𝑙𝑖𝑜𝑛
• 𝑇𝑜𝑡𝑎𝑙 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 𝑓𝑜𝑟 2012 = 𝑅77,000 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 + 𝑅38,500 𝑚𝑖𝑙𝑙𝑖𝑜𝑛 =
𝑅115,500 𝑚𝑖𝑙𝑙𝑖𝑜𝑛.
𝑨𝒏𝒔𝒘𝒆𝒓: 𝑎. 𝑅115,500 𝑚𝑖𝑙𝑙𝑖𝑜𝑛


1.3 Which of the following is not an example of unreimbursed losses?
Answer:
c. Losses resulting from risks with available insurance cover.
1.4 Calculate the percentage of passengers not affected by cancellations or
delays.
• 𝑇𝑜𝑡𝑎𝑙 𝑝𝑎𝑠𝑠𝑒𝑛𝑔𝑒𝑟𝑠 = 300,000
• 𝐶𝑎𝑛𝑐𝑒𝑙𝑙𝑎𝑡𝑖𝑜𝑛𝑠 = 191,000
• 𝐷𝑒𝑙𝑎𝑦𝑠 = 78,000
• 𝑇𝑜𝑡𝑎𝑙 𝑎𝑓𝑓𝑒𝑐𝑡𝑒𝑑 (𝑐𝑎𝑛𝑐𝑒𝑙𝑙𝑎𝑡𝑖𝑜𝑛𝑠 + 𝑑𝑒𝑙𝑎𝑦𝑠) = 191,000 + 78,000 = 269,000
• 𝑃𝑎𝑠𝑠𝑒𝑛𝑔𝑒𝑟𝑠 𝑛𝑜𝑡 𝑎𝑓𝑓𝑒𝑐𝑡𝑒𝑑 = 300,000 − 269,000 = 31,000
• 𝑃𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑜𝑓 𝑝𝑎𝑠𝑠𝑒𝑛𝑔𝑒𝑟𝑠 𝑛𝑜𝑡 𝑎𝑓𝑓𝑒𝑐𝑡𝑒𝑑 = (31,,000) ∗ 100 = 10.33% ≈
10%.
𝑨𝒏𝒔𝒘𝒆𝒓:
𝑎. 10%