QUESTION

Naval Shipping (Pty) Ltd is a large shipping company. The company’s head

office is in Cape Town. Cargo is shipped to and from major harbours in Africa and worldwide. Cargo is shipped in tankers and container ships. You are part of the team of internal auditors responsible for a strategic audit of the risk management process.

The following risks were identified during the planning stage of the internal audit:

• The loss of a ship at sea.
• The substantial decline in world shipping markets.
• The threat of piracy at sea.
• Information technology system failure.

• The inability of customers to pay amounts owed for shipping

  services.

• Foreign exchange rate fluctuation risks.
• Breaching international shipping regulations.

• Failure to react to significant advances or changes in the

  shipping industry.

• Damage to or theft of cargo from containers while under control of Naval Shipping (Pty) Ltd.
• Loss of key staff throughout the company/ high staff turnover in the company.

REQUIRED

Match the risks listed above to the best recommended action that can be taken by management to mitigate the risk. (10)