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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Explain the basic principles of enterprise wide risk management 
SAQA US ID UNIT STANDARD TITLE
242618  Explain the basic principles of enterprise wide risk management 
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  12 
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:
  • Investigating a selected business in terms of its strategic risk philosophy.
  • Analysing the operational risk in a selected business.
  • Analysing the financial risk in a selected business.
  • Analysing the competition risk in an organisation in a specific sector. 

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

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Human Resource policies include, but are not limited to policies required by labour legislation, training and development, recruitment, skills and HIV/AIDS.
  • Reporting systems include, but are not limited to, annual, financial, access to information manual, WebPages, pamphlets, brochures and internal communications.
  • Process risks include, but are not limited to the risk management process, insurance process, security of people, assets and information, business continuity process, legal and compliance processes and process to combat criminal activities.
  • External factors include, but are not limited to, politics, economy, socio economic factors, HIV/AIDS, sustainability, national and international regulations, accords and standards.
  • Financial processes include, but are not limited to audited statements, reconciliation of accounts and regulatory reporting. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Investigate a selected business in terms of its strategic risk philosophy. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Documents relating to the vision, mission and core values of an organisation are evaluated in terms of how they were developed, communicated and are applied in an organisation. 

    ASSESSMENT CRITERION 2 
    The culture of the organisation is compared to the documented statements of philosophy. 

    ASSESSMENT CRITERION 3 
    The structure of an organisation is analysed in terms of its human resource policies, organogram and defined roles and responsibilities. 

    ASSESSMENT CRITERION 4 
    Staff morale, staff turnover and absenteeism are investigated as indicators of organisational culture. 

    ASSESSMENT CRITERION 5 
    Internal and external auditing processes in an organisation are examined for evidence of annualisation. 

    ASSESSMENT CRITERION 6 
    The reporting systems in an organisation are investigated and an indication is given of the benefits of each and any additional reports that are required of the organisation. 

    SPECIFIC OUTCOME 2 
    Analyse the operational risk in a selected business. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Process risks in an organisation are analysed in order to establish the impact of the risk on a business. 

    ASSESSMENT CRITERION 2 
    Three process risks in an organisation are identified and correctional actions are suggested for each risk. 

    ASSESSMENT CRITERION 3 
    Three potential systems risks are identified and corrective actions are suggested for each risk. 

    ASSESSMENT CRITERION 4 
    External factors that could impact on a business are identified in the context of a specific business sector. 

    ASSESSMENT CRITERION 5 
    Three potential external events are identified and suggestions are made for corrective action. 

    ASSESSMENT CRITERION 6 
    The difference between a provision and a reserve is explained with examples. 

    SPECIFIC OUTCOME 3 
    Analyse the financial risk in a selected business. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The financial processes in an organisation are examined for evidence of compliance with generally accepted accounting practice (GAAP). 

    ASSESSMENT CRITERION 2 
    Processes to manage credit risk in an organisation are identified and evaluated in terms of credit strategy, contractual risk, debt management and collection and relevant provisioning. 

    ASSESSMENT CRITERION 3 
    The importance of accurate, up to date, reliable data as a basis for financial decisions is explained with examples. 

    SPECIFIC OUTCOME 4 
    Analyse the competition risk in an organisation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    An organisation's competitors are identified in order to benchmark the organisation in a specific industry in terms of service, products, market penetration and reputation. 

    ASSESSMENT CRITERION 2 
    The importance of branding in business is explained and an indication is given of the implications and consequences of a branding strategy. 

    ASSESSMENT CRITERION 3 
    The target market of an organisation is identified and compared to that of its main competitors to determine market penetration. 

    ASSESSMENT CRITERION 4 
    The customer management system of an organisation is evaluated for effectiveness for the target market. 

    ASSESSMENT CRITERION 5 
    The risk to an organisation if it ignores competition is explained with reference to case studies. 


    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 investigating organizational culture and strategic risk philosophy. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is capable of collecting, organising and critically evaluating information in analysing the operational, financial and competitive risk in an organisation. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is capable of communicating effectively proposing corrective actions for identified risks. 

    UNIT STANDARD CCFO SCIENCE 
    The learner is capable of using technology effectively and critically analysing financial risk in an organisation. 

    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 importance, implications and consequences of branding strategies. 

    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: enterprise risk management, risk management, strategic risk. 

    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.