Corporate Risk Management (2)

FORMATIVE ASSESSMENT 2 [100 MARKS]

You are required to select a local fast moving consumable goods (FMCG) business of your choice , e.g., Pick n Pay, and perform the following tasks. Answer ALL the questions in this section.

Question 1 (25 Marks)

Provide a brief description of the selected business and clearly differentiate between the three levels of management within the organisation. Acknowledging that the managers of today face various challenges, with the aid of appropriate examples related to the selected business, identify, and discuss at least five such challenges.

Question 2 (25 Marks)

Using the PESTLE risk classification system, evaluate the risks that the selected business must take into consideration. Based on your assessment, which element of the PESTLE analysis presents the most severe risk. Provide an appropriate justification for your selection.

Question 3 (25 Marks)

In relation to the selected business, discuss the concept of sustainability and the various aspects of a properly implemented ethics management process.

Question 4 (25 Marks)

From an operational risk perspective, discuss the components of operations and in context of the chosen business, identify and assess at least one risk for each component. (For assessment purposes - Use a 5 x5 matrix and the following formula: Risk score = likelihood x impact