TRUE $/$ FALSE QUESTIONS

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$)$

$2\mathrm{.}1$ Reputational risk falls under the category of non$-$systematic risks because it pertains

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

$(2)$

$2\mathrm{.}2$ Interest rate risk is a non$-$systematic risk that can be mitigated through hedging with

financial instruments like interest rate swaps. True$/$False

$(2)$

$2\mathrm{.}3$ The success of an integrated risk management approach depends largely on the

organization$$s culture and the commitment of its leadership. True$/$False

$(2)$

$2\mathrm{.}4$ Natural disasters are unpredictable events that are difficult to include in operational

risk management plans. True$/$False

$(2)$

$2\mathrm{.}5$ Globalization can increase operational risks by complicating supply chain logistics

and exposing companies to diverse regulatory environments. True$/$False$.$

$(2)$

$2\mathrm{.}6$ External audits and assessments can help identify risks that internal teams might

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

$(2)$

$2\mathrm{.}7$ Internal loss data is sufficient for building comprehensive operational risk models,

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

$(2)$

$2\mathrm{.}8$ Employee training and awareness programs are considered essential components

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

True$/$False$.$

$(2)$

$2\mathrm{.}9$ Investing in preventive measures, even if costly upfront, can reduce the overall cost

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

$(2)$

$2\mathrm{.}10$ Regulatory compliance monitoring is only concerned with adhering to legal

requirements and does not contribute to the broader operational risk monitoring

framework. True$/$False$.$

$(2$