QUESTION 2 (25 marks)

RISK MANAGEMENT - MATCHING DEFITIONS/ TERMS TO STATEMENTS

You are required to match the following terms / concepts (1-8) with their relevant definitions (a) to (h) and synonyms (i) to (viii) in the table below. If you think that Term 1 matches with definition (b), synonym (ii) write your answer as 1(b) (ii) on the space provided below. You do NOT need to re-write the whole term and its definition.

TERMS / CONCEPTS	STATEMENTS / DEFINITIONS	SYNONYMS / OTHER DESCRIPTION
Integrated Development Plan	Actions or steps taken to counter the risk identified	Severity
Risk	A chance that the risk will materialise resulting in the intended objective not achieved	Probability (%)
Likelihood	The damage or loss that will result if and when the risk does occur. This can be quantified in money terms or in the inconvenience it brings	Controls
Impact	The thing that prevents the objective from being achieved	What can go wrong
Mitigants	The purpose or aim that the municipality wants to attain	Strategic Objective
Unqualified audit report with minimal or no findings	Commitment of money based on fundamental research, to real financial assets for a given period in order to accumulate wealth over the long term	Functions of a municipality
Municipalitys Business Model	Rendering of services and collection of revenue	Clean Audit
Risk & Return	Audit Opinion issued by the Auditor General which is the most desirable that the municipality should always aim for	Theory of Investments