12 Jul DISCUSS WHY IS IT IMPORTANT TO UNDERSTAND HOW PEOPLE BEHAVE UNDER UNCERTAINTY?
Question 1 You are being interviewed for a senior management position in the risk management Department of a large international company based in Lusaka. You have one hour to produce a coherent short paper on the strategic role of risk management in the company:
a) Outline how and why risk management has evolved in the last two decades across the globe. (5 marks)
b) Discuss how weak risk management in Zambia has impacted on the governance, efficiency and performance of different organisations, during the same period. (5 marks)
c) Discuss why is it important to understand how people behave under uncertainty? Illustrate your answer with the theoretical frameworks and examples of how a good understanding of how people behave under uncertainty lead to better design of optimal risk management frameworks in practise. (10 marks)
d) Explain how the implementation of internationally recognised risk management frameworks coordinated at corporate level can aid in building competitive advantage for Zambia corporates. (12 marks)
e) Evaluate the key considerations that Zambian corporations should take into account when organising their board risk oversight infrastructure.
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