SEP2606 Assignment 1 Semester 2 2026 – Due 12 August 2026

Description

SEP2606 ASSIGNMENT 1 2026
DUE 12 AUGUST 2026

SECTION A
QUESTION 1
After identifying the risks and security weaknesses within a client’s organisation,
management must select the most cost-effective risk management strategy.
Discuss the four decisions available to management for managing risks costeffectively
and
provide
your
own
examples.

Introduction
Once risks and security weaknesses have been identified, management must select the
most appropriate and cost-effective strategy. According to the SEP2606 Study Guide,
the overriding factor is normally cost. Management has four primary options known as
the “four Ts of risk management”: terminate, tolerate, transfer, and treat (Study Guide,
Unit 1, pp. 10-12).

1. Terminate
The terminate option is chosen when the impact or consequence is so serious that the
activity must cease immediately (Study Guide, Unit 1, p. 10).
Advantages: No further loss can be suffered through exposure to the risk concerned.
Disadvantages: May destroy profit potential and offend clients.