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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Apply technical knowledge of risk to business interruption 
SAQA US ID UNIT STANDARD TITLE
242666  Apply technical knowledge of risk to business interruption 
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 4  NQF Level 04 
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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
14980  Apply technical knowledge and skill in order to manage risk in business interruption  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard develops an understanding of business interruption and the implications and consequences for a business. It is intended for Intermediaries, Brokers, Risk Advisers, Surveyors and Managers of organisations and learners who manage operational risk in insurance and other organisations.

The qualifying learner is capable of:
  • Explaining the principles of incident escalation as they relate to business interruption.
  • Investigating potential business interruption risk.
  • Explaining the principles of graduated response.
  • Planning the resumption of business operations to full turnover. 

  • 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 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Emergency situations include but are not limited to fire, bomb threat, explosion, armed robbery, civil/labour unrest, flooding, bioterrorism, property damage and machinery breakdown.
  • Threats that could result in business interruption include, but are not limited to, theft, fire, bomb threat, explosion, civil/labour unrest, armed robbery, flooding, bioterrorism and machinery breakdown.
  • Risk exposures relating to public utilities and supply lines include, but are not limited to, electricity, gas and transport.
  • Suggestions for a plan to access and acquire the necessary resources for a specific operation include temporary and permanent measures. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the principles of incident escalation as they relate to business interruption. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The factors and effects that distinguish a minor and a major incident are compared with reference to business interruption. 

    ASSESSMENT CRITERION 2 
    The factors and effects that distinguish an emergency and a crisis are compared with reference to business interruption. 

    ASSESSMENT CRITERION 3 
    The principles of incident escalation are explained for threats that could result in business interruption. 

    ASSESSMENT CRITERION 4 
    Risk exposures relating to public utilities and supply lines are identified for a specific business. 

    ASSESSMENT CRITERION 5 
    Risks relating to customers and market share are identified for a specific business. 

    SPECIFIC OUTCOME 2 
    Investigate potential business interruption risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Potential risks that could interrupt business are identified for retail and manufacturing concerns in different locations. 

    ASSESSMENT CRITERION 2 
    The effects of business interruption on suppliers and consumers are identified for business and manufacturing and retail concerns. 

    SPECIFIC OUTCOME 3 
    Explain the principles of graduated response. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The principles of graduated response are explained with reference to different emergency situations. 

    ASSESSMENT CRITERION 2 
    The principles of incident escalation and graduated response are aligned to ensure appropriate response to the severity of the incident for different case studies. 

    ASSESSMENT CRITERION 3 
    A proposal to minimise the adverse consequences of business interruption is compiled for a specific operation with specific reference to regaining market share. 

    SPECIFIC OUTCOME 4 
    Plan the resumption of business operations to full turnover. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Resources required to resume business to the original turnover are identified with reference to equipment, finance, materials and person power. 

    ASSESSMENT CRITERION 2 
    Suggestions are made for a plan to access and acquire the necessary resources for a specific operation in the shortest possible time. 

    ASSESSMENT CRITERION 3 
    Contract agreements with other businesses affected by the interruption are analysed for suppliers and customers and suggestions are made to minimise the financial consequences of the business interruption. 

    ASSESSMENT CRITERION 4 
    Additional increased costs of working are analysed and an indication id given of additional financial resources required to maintain market share and to retain the goodwill of customers. 

    ASSESSMENT CRITERION 5 
    The timeframes needed to return to full production and to regain market share after a business interruption are estimated for a specific event. 


    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 
    Learners are capable of identifying and solving problems in which responses show that responsible decisions using critical and creative thinking have been made in identifying potential risks to business interruption at a specific organisation and suggesting a plan of action. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are capable of collecting, organising and critically evaluating information in investigating business interruption risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are capable of communicating effectively in analysing and quantifying the business interruption risk at an operation and suggesting action plans. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are capable of seeing the world as a set of related systems in planning the resumption of business after a business interruption. 

    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 14980, ' Apply technical knowledge and skill in order to manage risk in business interruption ', Level 4, 2 credits.

    Search words: business interruption, risk management. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57613   Further Education and Training Certificate: Short-Term Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30  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.