SAQA 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.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Demonstrate knowledge and understanding of risk in a Financial Services environment 
SAQA US ID UNIT STANDARD TITLE
119997  Demonstrate knowledge and understanding of risk in a Financial Services environment 
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  5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
12185  Demonstrate knowledge and understanding of risk in a financial services environment  Level 5  Level TBA: Pre-2009 was L5  5   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who work in a financial services environment. It introduces basic concepts and principles of risk management but does not require the learner to give financial advice. It will be useful for, among others, Trustees of Retirement Funds and Medical Schemes, Underwriters, Claims Assessors, learners in tendering and pricing, Long-Term Insurance and Investment Intermediaries and learners in Collective Investment Management Companies.

The qualifying learner is capable of:
  • Explaining the concept of risk in a financial services environment.
  • Explaining the relationship between investment instruments and financial markets.
  • Demonstrating insight into current global economic issues.
  • Developing a group investor profile.
  • Applying the principles of risk to make a financial decision. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    Learners should be competent in Communication and Mathematical Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Factors that influence the level of risk are timing, term, type of instrument and nature of the market.
  • Investor profiles may refer to an individual or a group. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the concept of risk in a financial services environment. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of risk in financial services is explained in terms of appetite for risk. 

    ASSESSMENT CRITERION 2 
    The factors that influence the level of risk of a financial instrument or product are described with examples. 

    ASSESSMENT CRITERION 3 
    The concept of probability is explained using historical examples. 

    ASSESSMENT CRITERION 4 
    The importance of interpreting risk in relation to the investor or client is explained with examples. 

    SPECIFIC OUTCOME 2 
    Explain the relationship between investment instruments and the financial markets. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The inherent risk in the different asset classes and/or insurance products is explained with examples. 

    ASSESSMENT CRITERION 2 
    The concept of a financial market is explained with local and international examples. 

    ASSESSMENT CRITERION 3 
    The economic factors that can influence financial markets are named and an indication is given of how these can influence the investor to make an investment decision. 

    SPECIFIC OUTCOME 3 
    Demonstrate insight into current global economic issues. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Global economic issues that affect investment markets are analysed and an indication is given of the probability that these will impact on the South African investor. 

    ASSESSMENT CRITERION 2 
    Global political issues that affect investment markets are analysed and an indication is given of the probability that these will impact on the South African investor. 

    ASSESSMENT CRITERION 3 
    Global environmental issues that affect investment markets are analysed and an indication is given of the probability that these will impact on the South African investor. 

    ASSESSMENT CRITERION 4 
    Health related issues that affect investment markets are analysed and an indication is given of the probability that these will impact on the South African investor. 

    SPECIFIC OUTCOME 4 
    Develop a group investor profile. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The kind of information required to develop a group investor profile is listed and an indication is given of why each item of information is required of an investor. 

    ASSESSMENT CRITERION 2 
    An investor profile is compiled based on the available information about the investor. 

    ASSESSMENT CRITERION 3 
    The investor profile is matched to available investment options. 

    SPECIFIC OUTCOME 5 
    Apply the principles of risk to make a financial decision. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The risk of a specific investment option is analysed and quantified in order to explain the consequences of the suggested investment option. 

    ASSESSMENT CRITERION 2 
    The level of volatility is explained for a specific financial option. 

    ASSESSMENT CRITERION 3 
    Possible options to reduce risk are explored and a strategy is developed that could reduce a specified risk. 

    ASSESSMENT CRITERION 4 
    Possible investment options are selected and presented to a potential client. 

    ASSESSMENT CRITERION 5 
    The consequences of making a poor investment decision or recommendation are explained with reference to the impact on future benefits and legislated accountability. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by a relevant accredited ETQA or an ETQA that has a Memorandum of Understanding with the relevant accredited ETQA. 

    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 
    Learners are able to assess a situation and make a decision about financial options and their accompanying risk. 

    UNIT STANDARD CCFO COLLECTING 
    Learner can collect, organise and evaluate information by demonstrating insight into global economic issues and in making an investment decision. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are able to communicate effectively using visual, mathematics and language skills in calculating probability and explaining the risk attached to selected investment options. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to demonstrate an understanding of the world as a set of related systems by recognising the effect that global economic issues have on the South African investor. 

    UNIT STANDARD CCFO CONTRIBUTING 
  • Learners are able to develop entrepreneurial opportunities by selecting financial instruments that could be suitable for specific investors.
  • Learners are able to participate as a responsible citizen in the life of local, national and global communities by making sound financial decisions. 
    		•

    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 
    This unit standard replaces unit standard 12185, "Demonstrate knowledge and understanding of risk in a Financial Services environment", Level 5, 5 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Fundamental  49834   National Certificate: Financial Services: Long-Term Risk Assessment  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered"     		 2012-06-30  INSETA 
    Fundamental  66611   National Certificate: Wealth Management  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 
    Fundamental  49860   National Diploma: Financial Services: Long-Term Risk Assessment  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 


    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.
     
    NONE 


    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.