Based on the case study, provide a brief discussion on the importance of risk management for companies like Woolworths

SA$.$ Furthermore, organisational risk management is also concerned with planning in order to deal with loss situations and

to recover from losses. Identify and differentiate the two $(2)$ types of plans that Woolworths SA could use in the context of

the case study.

Question $2(25$ Marks$)$

Discuss the purpose of risk classification systems with specific reference to the FIRM Risk Scorecard. Using the scorecard,

perform a high$-$level analysis of the risk faced by Woolworths SA as presented in the case study.

Question $3(25$ Marks$)$

Enterprise Risk Management $($ERM$)$ is a new strategic process that identifies and addresses the full range of business

opportunities and risks. It is also a value$-$generating business risk management process that provides the discipline and

tools for mastering risk as the enterprise creates value. Doing some independent research and with the aid of appropriate

examples, discuss the application of the four $(4)$ risk response strategies identified with the ERM concept. In relation to the

case study, identify and evaluate the risk response strategy being utilised and the results thereof.

Question $4(25$ Marks$)$

The group said its "significant past investments" in its energy supply capabilities proved beneficial, with $99\%$ of its stores

and all its distribution centres already equipped with generator capacity.

Companies like Woolworths SA are thinking about implementing further controls to mitigate the risk of load shedding. Based

on the statement from the case study, $‘$The group said its "significant past investments" in its energy supply capabilities

proved beneficial, with $99\%$ of its stores and all its distribution centres already equipped with generator capacity$’$ and with

the use of an appropriate diagram, advise Woolworths SA on how they can go about determining if controls are cost

effective, so they do not go overboard with implementing controls that are not cost effective.