2.1 Answer ANY FOUR (4) questions in this section. QUESTION 1 2.2 (10 marks) 1.1 In the context of your organisation and / or any organisation of your choice, define risk and differentiate betwe pure (hazard) risks and uncertainty (control) risks with the aid of examples. 1.2 Critically evaluate ANY TEN (10) risk description characteristics as postulated by Hopkins, 2005: 17. Which of these risk descriptions links to your organization? (15 marks) (25 Marks) In managing credit risk, one needs to create a system of interconnected and interdependent methods of deliberate action aimed at minimizing risk and uncertainty in crediting-related activities. Using the proposed model of credit risk assessment makes it possible to take a differentiated approach to credit risk management. QUESTION 2 Credit risk management can be represented as a process consisting of the following stages: i. Risk factor identification ii. iii. iv. At the stage of credit risk identification, the potential risk is assessed in terms of its quantitative and qualitative parameters within the framework of the risk factor analysis adopted by the bank in order to determine the degree of the severity posed by the risk in question. Adapted: Konovalova, N., Kristovska, I., and Kudinska, M. (2016), Credit Risk Management in Commercial Banks. Assessment of the potential consequences of an identified risk factor Choice of managerial strategies aimed at counteracting the consequence of a given risk factor. Supervision (monitoring) of the implementation of the chosen strategies aimed at minimising and neutralising the effect of a given risk factor. Critically evaluate the risk management framework as postulated by Hopkins (2015) and comment on its (15 marks) relevance and applicability in any organisation / institution of your choice. (10 marks) With the aid of relevant examples evaluate the terms, "Treat' and 'Transfer' as used in Risk Management. (25 Marks) QUESTION 3 The main purpose of risk assessment is to determine whether the risk level is acceptable according to risk appetite. Risk level commonly determined through combination of consequences and likelihood. The consequence is an outcome of an event that affecting objectives and consequence can be certain or uncertain and can have positive or negative, direct or indirect effects on objectives. At the same time, consequences can be expressed qualitatively or quantitatively. Adapted: Ramly, E.F. and Osman, M.S. (2018), Development of Risk Management Framework - Case Studies, Proceedings of the International Conference on Industrial Engineering and Operations Management Paris, France, July 26-27, 2018 (10 marks) 3.1 Using examples explain what you understand by the term risk appetite and highlight why it is important to any organisation of choice and how it has practically helped the organisation achieve its objectives? Critically evaluate the tyr own opinion do you QUESTION