Select the correct answer from the options available. Indicate your answer in the Answer book provided. For example: $2\mathrm{.}1$ FALSE

Each question is worth two $(2)$ marks.

QUESTION $2(20$ Marks$)$

$2\mathrm{.}1$

$2\mathrm{.}2$

$2\mathrm{.}3$

$2\mathrm{.}42\mathrm{.}5$

$2\mathrm{.}62\mathrm{.}7$

$2\mathrm{.}9$

$.$

$.$ True$/$False

$.$ True$/$False

$.$ True$/$False$.$

$(2)$

$(2)$

$(2)$

$(2)(2)$

$(2)(2)$

$(2)$

Reputational risk falls under the category of non$-$systematic risks because it pertains

to the perception of a specific company. True$/$False

Interest rate risk is a non$-$systematic risk that can be mitigated through hedging with

financial instruments like interest rate swaps

The success of an integrated risk management approach depends largely on the

organization$$s culture and the commitment of its leadership

Natural disasters are unpredictable events that are difficult to include in operational

risk management plans. True$/$False

Globalization can increase operational risks by complicating supply chain logistics

and exposing companies to diverse regulatory environments

External audits and assessments can help identify risks that internal teams might

miss due to familiarity bias. True$/$False$.$

Internal loss data is sufficient for building comprehensive operational risk models,

without the need for external data sources. True$/$False$.$

$2\mathrm{.}8$

Employee training and awareness programs are considered essential components

$(2)$

of risk control as they empower staff to recognize and respond to risks appropriately.

True$/$False$.$

Investing in preventive measures, even if costly upfront, can reduce the overall cost

of risk in the long term. True$/$False$.$

$2\mathrm{.}10$

Regulatory compliance monitoring is only concerned with adhering to legal

$(2)$

requirements and does not contribute to the broader operational risk monitoring

framework. True$/$False$.$