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CGR810S-CORPORATE GOVERNANCE AND RISK MANAGEMENT-2ND OPP- JULY 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: CGR81 OS
SESSION: JULY 2025
LEVEL:8
COURSENAME:CORPORATEGOVERNANCEAND
RISK MANAGEMENT
PAPER: THEORY AND APPLICATION
DURATION: 3 HOURS
MARKS: 100
SECOND OPPORTUNITY EXAMINATION QUESTION PAPER
EXAMINERS Ms. Saima Ashipala
MODERATOR 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 _5_ PAGES (including this front page)
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QUESTION 1
[22 MARKS]
The application regime for King IV is "apply and explain"
Corporate Governance codes require that an organization should put in place the following
functions:
• Risk management
• IT Governance
• Remuneration Committee
• Internal Audit
• External Audit
REQUIRED:
MARKS
a) For each of the listed functions, identify and explain any TWO (2) roles 10
and responsibilities related to the function within the broader corporate
governance spectrum.
b) The governing body should lead ethically and effectively.
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The recommended practices require that members of the governing
body should exhibit the following characteristics in their leadership
conduct. Integrity, competence, transparency, fairness, responsivity,
and accountability.
A new employee recently joined the organization, and the CEO asked
you to define the above 6 characteristics for the new employee in a one-
page brief. Please write a clear brief to the new employee.
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QUESTION 2
[14 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 consensus on what matters most in risk and risk
assurance has the potential to undermines many efforts to develop an integrated view.
Often, the challenges are that complex risks overlap and accountability for them either sits
with too many or no one at all. The diagram below helps management identify who should
be accountable and responsible for addressing specific risks within the organization.
1. Oversee risk management, requires a clear views of risk, and hold management and internal
audit accountable to providing risk assurance
~)'
2. Holds a major stake in the successof risk management as it affects financial performance
and assets values
,7
3. Is responsible for implementing the strategies and achieving the performance goals that may
be affected by risks and risk management
~)'
4. Is accountable for decisions on operational performance and risk management
~)'
5. Is responsible for supporting and overseeing risk management across the enterprise, this
requires useful high quality risk assurance
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6. Aims to improve oversight of reporting and internal control and audit processes and must
understand the organisation risk and risk management activitiesChief Financial Offcer
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7. Focuseson the risks associated with external vendors, partners, and supplierers
REQUIRED:
Every organization has a unique set of value drivers; each will have unique
ways of defining, assessing, tracking, and addressing risks and a unique
set of processes for providing assurance. For each of the functions
identified in the diagram, assign the executive function that holds ultimate
responsibility and accountability for creating and preserving organizational
value through effective risk management.
MARKS
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QUESTION 3
[20 MARKS]
Below is a case study that highlights risk management excellence in practice. Provide
answers to Question 3 using the case study and your knowledge of risk management best
practices
SashDada Technology is a company known for its exemplary risk management practices.
It was founded in 2023 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
artificial intelligence. The company's risk appetite is limited, and however, due to the industry
in which it operates, it 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.
REQUIRED:
MARKS
Discuss five of SashDada Technology's risk management strategies and 20
initiatives that other organizations should consider employing to be successful in
the technology and innovation industry. (Clearly indicate the strategy and
initiative.)
QUESTION 4
[20 MARKS]
Risk management excellence
Marks
4.1 To achieve risk management excellence, organizations should implement and 12
focus on the following strategy initiatives:
a) developing a robust framework,
b) fostering a risk-aware culture,
c) implementing an effective risk management practice.
d) and regularly evaluating the effectiveness of risk management initiatives
and adapting strategies as needed are also crucial for continuous
improvement.
REQUIRED: You are appointed as a CEO for an organization and your first
assignment is to advice the board on how you intend to implement the above
strategy. The board was specific that they only want to see 4 activities per strategic
initiative.
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4.2 An effective board oversight is vital for holding management accountable,
aligning risk strategies with goals, and ensuring organizational resilience. What
are 6 key aspects to consider when evaluating an effective risk culture?
Marks
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QUESTION 5
[24 MARKS]
REQUIRED:
MARKS
a) What is the primary mandate and responsibility of the ethics office?
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b)
Man: .y
organizations
are
.
required
to
have
in place
policies
that
are
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relevant to the management,of ethics. Provide and discuss at least
three (3) policies addressing ~ny organization's ethics risk.
c) SCENARIO
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You own a tax ~dvisor buiin,ess, and you have recruited some of the
!
best tax advisor consultants.; One of your Senior Tax Consultants has
met with Tatiana; Tatiana is your firm's client. Tate Hamunyela,
Tatiana's father, also attended this meeting.
Tate Hamunyela is in very poor health and is not expected to live more
than 12 months. It is estimated that the value of his estate upon his
death (which he is comfortable with and made peace with as he
appears very jovial) will be very significant, and he wishes to carry out
some sophisticated and complex tax planning to reduce the tax which
will be payable in respect of his death estate to Namra. This means that
he wishes to change the terms to ensure that he doesn't leave his entire
estate to his daughter Tatiana, as this is the current plan in his will.
Tate Hamunyela wants to appoint your firm to replace his existing tax
advisors, which he believes are difficult for nothing.
Your senior Tax Consultant came to you and said she has an ethical
dilemma and needs your help. Explain to her any difficulties your firm
may have complying with the fundamental principles of professional
ethics concerning acting for Tate Hamunyela and suggest appropriate
safeguards/measures for your business.
END OF EXAMINATION PAPER
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