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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply technical knowledge to explain business risk and possible strategies to finance risk 
SAQA US ID UNIT STANDARD TITLE
242608  Apply technical knowledge to explain business risk and possible strategies to finance risk 
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  10 
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 Internal Audit Managers, Senior Financial Managers, Directors of Companies, people involved in corporate financial planning, Risk Managers and Intermediaries who operate at corporate, commercial and industrial level. It enables learners to design risk financial solutions to meet the needs of specific corporate, commercial and industrial clients and to optimise productivity and efficiency of resources.

The qualifying learner is capable of:
  • Explaining the consequences for an organisation that does not strategise risk appropriately.
  • Analysing the capacity of an organisation for risk.
  • Applying technical knowledge and skill to explain business risks in medium to large organisations.
  • Explaining how an organisation's risk appetite influences the financing of risk.
  • Researching options or strategies to finance risks. 

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

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • External influences that could impact on decisions include, but are not limited to interest rates, inflation, currency markets, the insurance market and legislation.
  • Vehicles or instruments include, but are not limited to, cell captive, captive, risk retention, capital markets, offshore/onshore, pools, securitisation and derivatives. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the consequences for an organisation that does not strategise risk appropriately. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The operational consequences for an organisation that does not have a risk finance strategy are discussed with reference to business interruption and restart up risks. 

    ASSESSMENT CRITERION 2 
    The legal consequences for an organisation that does not have an appropriate risk finance strategy are explained with reference to human resources and environmental factors. 

    ASSESSMENT CRITERION 3 
    The need for disaster recovery plans is explained as a strategy to finance risk with reference to the consequences if an organisation does not have a disaster recovery plan. 

    SPECIFIC OUTCOME 2 
    Analyse the capacity of an organisation for risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The capacity of an organisation in terms of human, material and financial resources is analysed in relation to exposure to risk and current turnover. 

    ASSESSMENT CRITERION 2 
    The capacity of an organisation for risk is compared to the risk appetite in order to determine the pay away capacity and potential retained capacity. 

    ASSESSMENT CRITERION 3 
    The concepts of an alternative premium, and a traditional premium, are explained with examples from a specific organisation. 

    ASSESSMENT CRITERION 4 
    The concepts of insurable risk, non insurable risk and uninsurable exposures are explained with examples from a specific organisation. 

    SPECIFIC OUTCOME 3 
    Apply technical knowledge and skill in order to explain business risks in medium to large organisations. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The business of a specific organisation is analysed in terms of exposure to risk. 

    ASSESSMENT CRITERION 2 
    A risk control profile is compiled indicating the probability and severity of risks in a specific organisation. 

    ASSESSMENT CRITERION 3 
    A risk finance analysis is complied indicating the frequency and severity of risks in a specific organisation. 

    ASSESSMENT CRITERION 4 
    The potential impact of the identified risks on the financial resources of an organisation are explained with reference to positive and negative risk. 

    SPECIFIC OUTCOME 4 
    Explain how an organisation's risk appetite influences the financing of risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concept of risk appetite is explained with reference to a specific organisation. 

    ASSESSMENT CRITERION 2 
    A cost of risk exercise is conducted to determine the cost of risk to a specific organisation. 

    ASSESSMENT CRITERION 3 
    The cost of risk and risk appetite of the specific organisation are benchmarked in order to compare exposures and costs of protection against standard exposures and costs for a specific industry. 

    ASSESSMENT CRITERION 4 
    External influences that could impact on decisions about risk are identified and an indication is given of current national and international trends. 


    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 thinking have been made in assessing an organisation's capacity and appetite for risk and designing a strategy to finance risk in a specific organisation. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in compiling a risk profile and risk analysis, analysing an The learner is capable of communicating effectively in presenting a strategy graphically. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is capable of demonstrating an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation in explaining the consequences for a organisation that does not strategise risk. 

    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:
  • Business risk, risk finance, risk appetite. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  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.