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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Examine the assets and liabilities from an organisation's financial statements in order to identify risk financing opportunities 
SAQA US ID UNIT STANDARD TITLE
242588  Examine the assets and liabilities from an organisation's financial statements in order to identify risk financing opportunities 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended For Auditors, Business Relation Consultants, Risk Managers, Financial Managers, Financial Service Providers, Bankers, Compliance Officers, Brokers And Intermediaries who give advice relating to risk finance and/or work in the field of risk management.

The qualifying learner is capable of:
  • Analysing the financial statements of an organisation.
  • Calculating monies available for risk finance.
  • Quantifying the exposures to risk in an organisation.
  • Researching options or strategies to finance risks.
  • Proposing a risk finance solution. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners should be competent in Communication and Mathematical Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Insurance and non-insurance and retained financial risk solutions.
  • Unencumbered assets include, but are not limited to, shares, locked up value, debtor's book, non-performing assets, overdrafts, savings and cash flow.
  • Net asset value includes, but is not limited to, asset ratio and over or under geared.
  • Selected media include, but are not limited to, Government Gazette, ITC and Judgements.
  • A strategy includes, but is not limited to, overall cost of risk, physical protection, retained risk, best case scenarios, worst case scenarios, conventional insurance policies, pay away, investments, stoppers, burners, deductibles, excess of loss, aggregates, wrap around protections and insurance linked securities. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Analyse the financial statements of an organisation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The financial statements of an organisation are analysed to determine the value of the unencumbered assets and liabilities. 

    ASSESSMENT CRITERION 2 
    The net asset value of the organisation is calculated in order to establish the level of finance available to fiance risk options. 

    ASSESSMENT CRITERION 3 
    Financial and legal publications and selected media are researched to establish undisclosed legal actions, sureties and under-declaring of potential liabilities. 

    SPECIFIC OUTCOME 2 
    Calculate monies available for risk finance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Recognised formulas are applied to financial statement results to measure the capacity of an organisation to retain risk. 

    ASSESSMENT CRITERION 2 
    Different methods are applied to measure management's risk appetite or risk tolerance. 

    SPECIFIC OUTCOME 3 
    Quantify the exposures to risk in an organisation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Costs that contribute to the total cost of risk are extracted from the financial statements of an organisation. 

    ASSESSMENT CRITERION 2 
    Exposures to financial risk in an organisation are identified and categorised as insurable, non-insurable and uninsurable. 

    SPECIFIC OUTCOME 4 
    Research options or strategies to finance risks. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Vehicles or instruments available to finance risk are investigated for different scenarios. 

    ASSESSMENT CRITERION 2 
    The advantages and disadvantages of different options for risk financing are applied to a specific oganisation in order to propose a financial solution. 

    ASSESSMENT CRITERION 3 
    A strategy is designed to align an organisation's resources to a proposed financial solution. 

    ASSESSMENT CRITERION 4 
    The strategy is presented graphically and substantiated for a potential solution. 

    SPECIFIC OUTCOME 5 
    Propose a risk finance solution. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A structure for a retained financial risk is proposed for a specific organisation. 

    ASSESSMENT CRITERION 2 
    A structure for an insured risk is proposed for a specific organisation. 

    ASSESSMENT CRITERION 3 
    A structure for a financial non-insurance related solution is proposed for a specific organisation. 

    ASSESSMENT CRITERION 4 
    A submission is presented to senior management indicating and substantiating possible risk finance opportunities for developing a risk financing strategy. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is capable of identifying and solving problems in which responses show that responsible decisions using critical and creative thinking have been made in proposing alternatives for risk transfer in an organisation. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in analysing financial, insurance and internal mechanisms for risk transfer and researching options for a risk finance strategy. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is capable of communicating effectively in proposing and substantiating a risk finance solution. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    Search words: Risk exposure, assets, liabilities, financial statements. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2023-06-30  INSETA 
    Elective  66611   National Certificate: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. AFRICAN UNION SKILLS DEVELOPMENT PTY LTD 
    3. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    4. Boland Public FET College - Central Office 
    5. CKP Development Agency (Pty) Ltd. 
    6. COLLEGE OF CAPE TOWN 
    7. College of Cape Town - Central Office 
    8. False Bay College 
    9. Intec College 
    10. Invuya Institute of Learning (Pty) Ltd 
    11. Masifunde Training Centre (Pty) Ltd 
    12. North Link College 
    13. Old Mutual Life Assurance Company South Africa 
    14. Ray Strodl Consulting (Pty) Ltd 
    15. Ripple Effect 4 (Pty) Ltd 
    16. Sanlam Life Insurance Ltd 
    17. Sanlam Life Insurance Ltd. 
    18. South Cape College 
    19. South Cape Public FET College - Central Office 
    20. The Institute of Health Risk Managers (Pty) Ltd 
    21. Umfolozi FET College - Central Office 
    22. Universal Healthcare Services (Pty) Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.