companies and discuss any observed similarities or differences. Note how this may affect the selection of key risks to be discussed in the next part. 3.Risk Taxonomy and risk analysis From your research in Section 2 and from reviewing Items 1 and 1A of the 10-K reports for both companies, perform the following: 1.Complete a risk taxonomy for BOTH companies summarising and mapping their stated risks into either strategic, operational, financial or compliance based risks, or any other relevant subcategory; 2.Compare and discuss similarities and differences between the risk taxonomies of the companies including noting the difference in ranking of similar risks. Consider and discuss possible sources of the differences including operational, regulatory, stakeholder or strategic reasons; 3.Select ONE risk SUBTYPE identified above (in Part a) that is common between your two companies and: (i)Explain the nature of this risk; (ii)Perform a detailed Bow Tie analysis of the risk highlighting both the causes and consequences of the risk involved. As part of this answer be sure to highlight the impact of any proposed controls. (iii)Recommend a risk management process to manage the risk including showing a hypothetical Risk Criteria that either company could use to evaluate this risk. 5
Note: Your group may not be able to find information about the actual controls and risk criteria used by the company. So, in order to answer this question you will need to use the lecture material, recommended readings, and your own research to propose a reasonable hypothetical approach. Focussing on a risk subtype is more practical than a broad risk category when it comes to designing controls (eg. Internal fraud rather than Operational risk). 5. Criteria for assessment The assignment will be marked out of a total of 100 marks, and will count toward 25% of the total marks for this Unit. Marks will be awarded based on the assessed quality of answers. The following rubric provides information regarding the criteria that will be used in marking. Table 2 Assessment Rubric Unsatisfactory <50% Adequate 50% to 60% Satisfactory 60% to 70% Good 70% to 80% Very Good 80% to 90% Excellent >=90% Component Marks Available Fails to satisfy the minimum requirements Satisfies the minimum requirements Demonstrates an average level of understanding, interpretation, originality, insight and presentation Demonstrates a high standard of understanding, interpretation, originality, insight and presentation Demonstrates a very high standard of understanding, interpretation, originality, insight and presentation Demonstrates an outstanding or exceptional standard of understanding, interpretation, originality, insight and presentation Overview of the companies and industry 15 Internal and external factor analysis 25 Risk Taxonomy of the companies 30 Report quality and compliance 10 Quality of analysis performed 10 Quality and breadth of research 5 Originality 5 TOTAL 100 6
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- Spring '19