6.

Operational risk mitigation

6.1. Operational risk mitigation: Study material

Copyright (c) 2013 - 2015, UNISA

RSK4801_Topic 4_2013.pdf

6.2. Self test questions

Copyright (c) 2013 - 2015, UNISA

Instructions: You can use the questions for your own self assessment, or you can discuss it with fellow students in the
'Discussion Forum' on myUnisa.

STUDY UNIT 10: BUSINESS CONTINUITY

1. Evaluate the benefits and limitations of the different BCM strategies.

2. Illustrate with a diagram the business continuity concept for slow and rapid onset disasters.
3. Discuss BCM as an operational risk mitigation concept.

STUDY UNIT 11: INSURANCE

1. Critically analyse captives as risk retention mechanism.

2. Evaluate options as a risk mitigation strategy.

STUDY UNIT 12: INTERNAL AUDIT

1. Critically evaluate the difference roles and responsibilities of internal and external audit.
2. To what extend should the internal audit department be deployed in a consultative role? How should the Head of
Internal Audit ensure that the function maintains its independence?
3. Argue the concept of risk based auditing and how the internal audit function should report the audit plan and the
results to the audit committee.

STUDY UNIT 13: INFORMATION TECHNOLOGY RISK

1. Motivate the methods that a person can use to gain an understanding of the organisation to prepare for a potential
cyber attack.
2. Research and discuss recent hacktivist attacks on a South African website.
3. Evaluate the 4A risk management framework.

STUDY UNIT 14: INFORMATION TECHNOLOGY CONTROL

1. Evaluate patch management as a control measure to protect the organisation against viruses.
2. Illustrate how you would approach to manage a security incident.
3. Argue the case for IAM in a large organisation.

STUDY UNIT 15: MASTER DATA MANAGEMENT

1. Argue the benefits of master data management in your organisation.

2. Argue data ownership and compare the traditional with the MDM model.

6.3. Further reading

Copyright (c) 2013 - 2015, UNISA

STUDY UNIT 10: BUSINESS CONTINUITY

Further reading
The following articles, which are available online at the UNISA library or the Internet, will provide more insight into the
approaches followed in different industries:

High-level principles for b usiness continuity. August 2006. Basel Committee on Banking Supervision.
www.bis.org/publ/joint17.htm
ODI Briefing paper. Aftershocks: National Disaster Risk and Economic Development Policy. November 2005.
Overseas Development institute.

STUDY UNIT 11: INSURANCE

KPMG. 2010. The South African Insurance Industry Survey 2010. KPMG.
http://www.kpmg.com/ZA/en/IssuesAndInsights/ArticlesPublications/Financial-Services/Pages/South-African-
Insurance-Survey-2010.aspx
KPMG. 2011. Evolving insurance regulation. KPMG.
http://www.kpmg.com/ZA/en/IssuesAndInsights/ArticlesPublications/Financial-Services/Pages/Evolving-Insurance-
Regulation-March2011.aspx
PWC. 2010. The way forward. Innovation and differentiation in the reinsurance industry – the CEO perspective.
September 2010. http://www.pwc.com/gx/en/insurance/event/rendezvous/innovation-differentiation-reinsurance-
industry.jhtml

STUDY UNIT 12: INTERNAL AUDIT

Principles for enhancing corporate governance. October 2010. Basel Committee on Banking Supervision.
www.bis.org/publ/bcbs176.htm
Internal audit in b anks and the supervisor’s relationship with auditors. 2001. Basel Committee on Banking
Supervision. http://www.bis.org/publ/bcbs84.pdf
Internal audit in b anks and the supervisor’s relationship with auditors: A survey. 2002. Basel Committee on
Banking Supervision. http://www.bis.org/publ/bcbs92.pdf
King Report on Governance for South Africa 2009. Institute of Directors in Southern Africa
Dickens, D.O’Reilly, D.2009. The qualifications and independence of internal auditors. Internal auditing; May/Jun
2009; 24,3; ABI/INFORM Global.
Gramling, A. Hermanson, D. 2009. Avoiding “where was internal audit?” Internal Auditing; Sep/Oct 2009; 24,5;
ABI/INFORM Global.
Marden, R. Reed, T. 2010. The audit process: when arrogance exceeds competence. Internal Auditing; Jul/Aug
2010; 25, 4; ABI/INFORM Global.
Bailey, J. Scmidt, B. 2011. Strengthening ethics and compliance programs. Internal Auditing; Jan/Feb 2011; 26,1;
ABI/INFORM Global.
Schneider, A. 2009. Informing the audit committee: information and reports provided by internal
audit. Internal auditing; Mar/Apr 2009; 24, 2; ABI/INFORM Global.