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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Identify and control risk within the financial markets 
SAQA US ID UNIT STANDARD TITLE
12893  Identify and control risk within the financial markets 
ORIGINATOR
SGB HET Accountancy and Financial Management 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
FASSET - Financial and Accounting Services SETA 
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 7  Level TBA: Pre-2009 was L7  15 
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 
Persons credited with this Unit Standard are able to identify the elements of risk associated with financial markets transactions and to take action to minimise such risk. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
It is assumed that the learner has achieved competence against unit standards Math 4001, Math 4001A, Math 4001B, Math 4002C, and Math 4004 as well as "Operate within the ethical, professional and legal limits of the South African and international legislation and codes of practice regulating the financial markets", "Demonstrate an understanding of the international financial markets within the South African context", and "Explain and apply concepts and principles of business ethics in the business environment" before attempting this unit standard. It is further assumed that they have achieved Grade 12 level or equivalent English and Mathematics. 

UNIT STANDARD RANGE 
"The various steps in an Exchange transaction" are:
  • Access
  • Communication mechanism
  • Order management
  • Quotation management
  • Execution
  • Deal capture and recording
  • Matching
  • Confirmation
  • Clearing and netting
  • Settlement
  • Exposure calculation
  • Information dissemination

    "The categories of risk associated with an exchange transaction" are:
  • Market risk
  • Performance risk
  • Settlement risk
  • Scrip risk
  • Counterparty risk

    "The different types of risk" include:
  • interest rate
  • foreign exchange
  • credit
  • gap / mismatch
  • liquidity
  • volatility
  • basis
  • settlement
  • operational
  • legal
  • fraud
  • reputational

    "Risk management mechanisms" include:
  • Access control
  • Surveillance
  • Order management
  • Audit trail
  • Automated trading system
  • Single-capacity trading
  • Automated clearing and settlement system

    "The concept of limits" includes:
  • intra-day
  • overnight
  • size
  • stop loss / take profit
  • allocation

    "Common accounting procedures in relation to revaluation" include:
  • Mark to market
  • Net Present Value
  • Accruals
  • Type of trading, eg hedging

    "Other players in the control of risk in the financial markets sector" include:
  • The Compliance officer
  • Treasury 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Identify the areas of risk associated with exchange transactions 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The risk elements associated with the various steps in an exchange transaction are identified. 

    ASSESSMENT CRITERION 2 
    2. The categories of risk associated with exchange transactions are identified. 

    ASSESSMENT CRITERION 3 
    3. The procedures required to identify money laundering are applied. 

    SPECIFIC OUTCOME 2 
    Measure the impact of risk associated with exchanges 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The impact of various risk categories is identified. 

    ASSESSMENT CRITERION 2 
    2. The concept of limit is examined from a global and a local perspective. 

    ASSESSMENT CRITERION 3 
    3. Common accounting procedures in relation to revaluation are introduced. 

    SPECIFIC OUTCOME 3 
    Control risk associated with exchange transactions 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The use of risk minimization techniques is described. 

    ASSESSMENT CRITERION 2 
    2. Mechanisms for minimising risk at each stage of the transaction are implemented. 

    ASSESSMENT CRITERION 3 
    3. Due diligence procedures are applied. 

    SPECIFIC OUTCOME 4 
    Discuss the roles of other players in the control of risk in the financial market sector 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The roles of the other players in risk management is described. 

    ASSESSMENT CRITERION 2 
    2. The firm's risk policies are evaluated and discussed. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation and moderation:

    Accreditation for this Unit Standard shall be from the relevant Education and Training Quality Assurer through formative and summative assessment by a registered Assessor. Assessment should be contextual and be conducted in the workplace as far as possible.

    The relevant NSB and SGB should be notified of any feedback related to this qualification.
  • Assessors must be registered as an Assessor with the relevant ETQA
  • Moderators must be registered as assessors with the relevant ETQA
  • Training providers must be accredited by the relevant ETQA
  • Moderation should include both internal and external moderation where applicable
  • The relevant ETQA will co-ordinate all moderation activities in accordance with their policies and procedures 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    A demonstrated understanding of:

    The terminology relating to the Financial Markets and instruments 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as a member of a team, group, organization or community. For example, all members of a team working in the financial markets environment should be aware of risk and its consequences, and should support one another in efforts to minimise its impact. 

    UNIT STANDARD CCFO ORGANISING 
    Organize and manage oneself and one`s activities responsibly and effectively. For example a high level of awareness is necessary at all times to identify risk elements, and effective self-management will enhance such awareness. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information. For example risk situations must be identified and evaluated on an ongoing basis, using information available in the environment. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and / or language skills in the modes of oral and / or written persuasion. For example, mathematical modelling and calculations are necessary to identify the extent of risk, and certain reports need to be prepared as a result of risk analysis and evaluation. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically. For example, necessary calculations and modelling can be performed efficiently using computer technology. 

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

    UNIT STANDARD NOTES 
    Terminology:

    Terminology relating to the Financial Markets can be found in "Who owns Whom`s Dictionary of Stock Market Terms" published by Who owns Whom / PSG Online in 2001. ISBN 1-919850-04-X

    Values:

    The use of tasks and materials in the learning event plan should not discriminate against learners on any grounds proscribed in the Bill of Rights and should promote the orientations outlined in the critical cross-field outcomes.

    Domain:

    Financial Markets 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  23653   National Diploma: Financial Markets  Level 6  NQF Level 06  Reregistered  2023-06-30  FASSET 
    Elective  50481   National Certificate: Financial Markets and Instruments  Level 6  Level TBA: Pre-2009 was L6  Reregistered  2023-06-30  BANKSETA 


    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. Felix Risk Training Consultants 
    2. Full Value Financial Services (Pty) Ltd 
    3. The Academy of Financial Markets 
    4. The Facilitation Workshop 
    5. The Institute of Literacy Advancement 



    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.