RSK2602
Assignment 1
Semester 2 2025
Due 20 August 2025
, RSK2602
Assignment 1
Semester 2 2025
Due 20 August 2025
Fundamentals of Operational & Financial Risk
Question 1: Evaluate the accuracy of each of the following statements. Indicate
whether you consider the statement accurate (true) or not (false) and provide a
full motivation for your answer
1.1 Operational failures caused by staff are driven by error, fraud, and data theft.
Answer: True
Motivation: Operational failures caused by staff are commonly attributed to three main
factors: human error (unintentional mistakes), fraud (intentional deceit or theft), and data
theft (unauthorized access or misuse of data). These are recognized internal risk
sources within organizations. For example, an employee might input incorrect data
(error), misappropriate funds (fraud), or steal sensitive information (data theft), each of
which can result in operational disruption.
1.2 Technology and systems are examples of external drivers of operational risk
management.
Answer: False
Motivation: Technology and systems are internal components of an organization,
managed and maintained within the business. While their failure contributes to
operational risk, they are not external drivers. External drivers include uncontrollable
factors such as economic shifts, regulatory changes, or natural disasters.
Assignment 1
Semester 2 2025
Due 20 August 2025
, RSK2602
Assignment 1
Semester 2 2025
Due 20 August 2025
Fundamentals of Operational & Financial Risk
Question 1: Evaluate the accuracy of each of the following statements. Indicate
whether you consider the statement accurate (true) or not (false) and provide a
full motivation for your answer
1.1 Operational failures caused by staff are driven by error, fraud, and data theft.
Answer: True
Motivation: Operational failures caused by staff are commonly attributed to three main
factors: human error (unintentional mistakes), fraud (intentional deceit or theft), and data
theft (unauthorized access or misuse of data). These are recognized internal risk
sources within organizations. For example, an employee might input incorrect data
(error), misappropriate funds (fraud), or steal sensitive information (data theft), each of
which can result in operational disruption.
1.2 Technology and systems are examples of external drivers of operational risk
management.
Answer: False
Motivation: Technology and systems are internal components of an organization,
managed and maintained within the business. While their failure contributes to
operational risk, they are not external drivers. External drivers include uncontrollable
factors such as economic shifts, regulatory changes, or natural disasters.
