The following scenarios depict examples of various key banking risks. You are required to identify the appropriate risk and motivate your answer by referring to the particular scenario. 1.1 A clerk at Bank XYZ irregularly charged an amount of R50 in cash for every account he opened for new customers, stating that it was for administration purposes. The money was then transferred to the account of his girlfriend for his private use. When several customers raised concerns on social media about this practice of charging an administration fee for opening accounts, an investigation was initiated by the bank. From this investigation, it became evident that the clerk's superior neglected to conduct the prescribed regular check-ups. (2) 1.2 Bank XYZ actively followed a strategy to aggressively grow its loan book by offering lower than market (competitor) interest rates. Unfortunately, the bank had an insufficient depositor base to fund these new loans. (2) 1.3 For many years, Bank XYZ has followed an aggressive dividend policy by rewarding shareholders with maximum dividends. This strategy was driven by the desire to drive its share price higher. Companies paying higher dividends were generally trading higher (higher share price and market rating) than their competitors. The direct consequence of the strategy to consistently pay out a maximum dividend meant that Bank XYZ did not retain enough income to grow its current operations. That is, it has now become evident that its capital/equity position was inadequate to support even normal operations. (2) 1.4 A South African company imported agricultural equipment from the USA worth $50 million, payable in three months' time. Due to the ' volatile nature of the market, the South African Rand has weakened considerably over the past month. If the trend in the weakening of the rand continues (as expected) at this rate, the importer will face huge losses in three months' time, as he did not take out forward cover. (2) 1.5 A tourism company in South Africa, one of the corporate customers of Bank XYZ, is currently experiencing severe financial problems due to unfavourable economic conditions, as well as the lockdown period linked to the COVID-19 pandemic. The lockdown period has effectively banned inbound tourism to South Africa. Pressure from creditors for payment is mounting daily. Apart from the pressure from creditors, the tourism company is currently unable to recover outstanding debtors, nor is it able to repay the company bank overdraft of R7 million held by Bank XYZ. (2)