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CGR810S-CORPORATE GOVERNANCE AND RISK MANAGEMENT- 1ST OPP-JUNE 2025 |
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nAmlBIA unlVERSITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCES AND EDUCATION
DEPARTMENT OF ECONOMICS, ACCOUNTING AND FINANCE
QUALIFICATION: POST GRADUATE DIPLOMA IN DEVELOPMENT FINANCE
QUALIFICATION CODE: 08PGDD
COURSE CODE: CGR810S
SESSION: JUNE 2025
LEVEL:8
COURSE NAME: CORPORATE GOVERNANCE AND
RISK MANAGEMENT
PAPER: THEORY AND APPLICATION
DURATION: 3 HOURS
MARKS: 100
EXAMINERS
MODERATOR
FIRST OPPORTUNITY EXAMINATION QUESTION PAPER
Ms. Saima Ashipala
Prof Mario Labuschagne
INSTRUCTIONS
1. This question paper consists of FIVE (5) questions.
2. Answer ALL FIVE (5) questions in blue or black ink only. NO PENCIL and TIPEX,
3. Start each question on a separate (new) page and number the answers correctly and
clearly.
4. Case study questions are application of knowledge.
5. Questions relating to this examination paper may be raised in the initial 30 minutes after
the start of the examination. Thereafter, candidates ·must use their initiative to interpret any
perceived error or ambiguities, and any assumptions made by the candidate MUST be
clearly stated for consideration.
PERMISSIBLE MATERIALS
1. None
THIS QUESTION PAPER CONSISTS OF _6_ PAGES (including this front page)
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QUESTION 1
[15 MARKS]
The application regime for King IV is "apply and explain."
All principles of the King Code are phrased as aspirations and ideals that organizations
should strive for in their journey towards good governance and realising the achievement of
governance outcomes. The principles are basic and fundamental to good governance, and
their application thereof is assumed. An explanation should be provided in the form of a
narrative account, with reference to practices (actions) that demonstrate application of these
principles. The explanation should address which recommended or other practices have
been implemented, and how these achieve or affect the principle.
REQUIRED:
MARKS
a) What should be disclosed on the application of King IV?
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b) Where should the King IV disclosure be made, and how often should the
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King IV be updated?
c) Principle 1: The governing body should lead ethically and effectively.
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The recommended practices require that members of the governing
body exhibit six (6) practices in their leadership conduct. List the 6
governing body practices stated under principle 1 of the King's Code.
QUESTION 2
[16 MARKS]
Risk assurance and reporting
Leaders must know what risks will affect their area of responsibility and who is ultimately
accountable for managing those risks. However, a lack of coordination among risk
assurance functions and a lack of consensu_son what matters most in the provision of risk
assurance has the potential to undermine many efforts to develop an integrated view. Often,
the challenges are that complex risks overlap and accountability for them either sits with too
many individuals or no one at all. Below is a diagram of the key functions (roles) in an
organization that should reach a consensus on risk matters to allow for the development of
an integrated view.
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REQUIRED:
Every organization has a unique set of value drivers, each of which will have
unique ways of defining, assessing, tracking, and addressing risks, and
processes for providing assurance. What is the ultimate responsibility and
accountability of these roles in creating and preserving organizational value
through the management of risk?
MARKS
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QUESTION 3
[34 MARKS]
Below is a case study that highlights risk management excellence in practice.
You are required to answer questions 3a, b, and c based on the case study information
and risk management best practice knowledge and guidance.
SashDada Technology is a company known for its exemplary risk management practices.
Founded in 2001 by an SME visionary, Lameck Odada. The company began as a small
start-up in the tech industry, funded by the Development Bank of Namibia. It specializes in
software development and IT consulting services.
Over the years, under Odada's leadership, the company expanded its offerings and
diversified into various sectors, including cloud computing, cybersecurity solutions, and
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artificial intelligence. The company's risk appetite is limited and however due to the industry
in which it operates needs to be innovative to grow, this means that they are risk savvy.
Today, SashDada Technology is a prominent player in the Namibian technology market,
serving clients ranging from small businesses to big enterprises.
SashDada Technology's risk management strategies and successes can be attributed to
several key strategies and initiatives:
1. Comprehensive Risk Assessment: SashDada Technology conducts regular and
thorough risk assessments to identify potential threats and vulnerabilities across its
operations.
2. Investment in Technology and Innovation: SashDada Technology prioritizes
investments in cutting-edge technologies such as Al-driven analytics, predictive
modelling and threat intelligence solutions.
3. Customer-Centric Approach: SashDada Technology tailors its risk management
solutions to meet specific needs and preferences. This fosters trust and long-term
partnerships.
4. Current Cybersecurity Measures: The company has made cybersecurity a top
priority.
5. SashDada Technology employs a multi-layered approach to cybersecurity to
mitigate the risk of cyberattacks.
6. Continual Improvement and Adaptation: SashDada Technology fosters a culture of
continual improvement and adaptation. The company encourages feedback and
collaboration among employees at all levels so they can identify areas for
improvement and implement solutions to mitigate risks effectively.
REQUIRED
MARKS
a) How did SashDada Technology maintain operational continuity and 10
minimize disruption?
b) What are the key takeaways and best practices you can identify from
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the case study for implementation at your organization?
c) What are the five best practices and strategies employed by SashDada
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Technology that any organization should adopt to cultivate a risk-aware
culture and achieve recognition as a leader in risk management
excellence
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QUESTION 4
[12 MARKS]
The Development Bank of Namibia (DBN) has matured in its risk management excellence.
However, like any other organization, challenges are inevitable, even for companies
excelling in this domain.
Despite their proactive efforts, DBN has encountered obstacles that can impede its risk
management practices due to operating in a complex and interconnected business
environment. Rapidly evolving risks constrain resources, and new and emerging regulatory
compliance requirements simultaneously burden the Bank.
You have been appointed as a Project Manager to review the following challenges and
suggest possible mitigation strategies that DBN could adopt to address these challenges.
REQUIRED:
MARKS
a) Complexity and interconnectedness business environment
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challenges: The modern business environment is increasingly complex
and interconnected, making it challenging for DBN to anticipate and
mitigate all potential risks comprehensively.
What are two strategies that could be employed to overcome these
challenges?
b) Rapidly evolving risks challenges: Risks are constantly evolving due
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to technological advancements, regulatory changes and global events
such as pandemics or geopolitical shifts. DBN may struggle to keep
pace with emerging risks and adapt their risk management strategies
accordingly.
What are two strategies that could be employed to overcome these
challenges?
c) Resource constraint challenges: Limited resources, including
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budgetary constraints and staffing limitations, can hinder DBN's ability
to invest adequately in risk management initiatives and tools.
What are two strategies that could be employed to overcome these
challenges?
d) Compliance and regulatory challenges: Meeting regulatory
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requirements and compliance standards can be burdensome and
complex.
What are two strategies that could be employed to overcome these
challenges?
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,r
QUESTION 5
[23 MARKS]
Ethics in business - an ethical Dilemma case study by Srivastava et al (2017)
Ethical dilemmas occur when there are conflicting moral principles or values, challenging
the decision-making process. In the financial service sector, these dilemmas often arise
from situations involving conflicts of interest, confidentiality breaches, and the pressure to
meet financial targets.
"Money, both in the form of credit and investments, greatly impacts the world. Money is a
means, not an end, but a powerful means to do things, and therefore, the evil use of money
can create a considerably negative impact on our world". By facilitating money to others,
financial institutions enact and empower the community. In our country, we are witnessing
one financial scam after another.
Many people withhold investment from· bompanies involved in alcoholic beverage
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distribution, the use of additives in food production, international arms trade, animal rights
violations, and environmental pollution. Whe~ banks lend money to others, they may not do
wrong alone; other entities might be engaQed in wrongdoing. But it does not excuse these
financial institutions from their:moral r.esponsi_bility.
Engaging in excessively speculative investments and irresponsible credit lending practices
is morally unacceptable. Bankers and financial professionals should take a responsible
approach in all investment and lending operations with their customers' money.
REQUIRED:
MARKS
a) What effective strategies can financial institutions employ to address 10
ethical issues and enhance their ethical standards?
b) What are the measures that organizations can implement to resolve 13
ethical dilemmas?
END OF EXAMINATION PAPER
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