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: 

Evaluate a credit risk 
SAQA US ID UNIT STANDARD TITLE
242680  Evaluate a credit 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 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
15011  Underwrite a credit risk  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who work in trade credit insurance and business to business credit insurance. It will be useful for Credit Insurance Intermediaries, Reinsurers, Underwriters, Claims Assessors and Consultants. Trade credit insurance should not be confused with consumer credit insurance as embodied in the National Credit Bill.

The qualifying learner is capable of:
  • Accessing information in order to make an underwriting decision.
  • Explaining the criteria used to underwrite a trade credit risk.
  • Analysing and interpreting a financial statement and securities.
  • Assessing a credit risk. 

  • 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:
  • Appropriate sources of information are reliable and credible.
  • Sources include, but are not limited to geographical location, trade, industry, and payment, bureaus, banks, site visits, industry meetings and industry clients.
  • Adverse information includes, but is not limited to a judgement, RD cheques, liquidation, repayment proposal, sale of business and dormant company.
  • A legal entity is a sole proprietary, partnership, closed corporation, private company (Pty), public company (Ltd), trust and incorporated.
  • Types of securities include, but are not limited to, cession of debtors, pledge, general notorial bonds, personal surety, cross company guarantees and bank guarantees.
  • Information used to make an informed decision includes, but is not limited to, history of company, knowledge of industry, financial risks and information from other sources. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Access information in order to make an underwriting decision. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Appropriate sources are identified to map or inform an underwriting decision. 

    ASSESSMENT CRITERION 2 
    The concept of a legal entity is explained with examples. 

    ASSESSMENT CRITERION 3 
    Information on a buyer is accessed from appropriate sources. 

    ASSESSMENT CRITERION 4 
    The importance of confidentiality in accessing information is explained and an indication is given of the consequences if there is a breach of confidentiality. 

    SPECIFIC OUTCOME 2 
    Explain the criteria used to underwrite a trade credit risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The underwriting guidelines of a specific insurer used to underwrite a trade credit risk are explained and classified according to low, medium and high risks. 

    ASSESSMENT CRITERION 2 
    The risks of a selected buyer are analysed to determine whether they are viable, acceptable and manageable. 

    SPECIFIC OUTCOME 3 
    Analyse and interpret a financial statement and securities. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    A financial statement is analysed in order to establish an entity's credit worthiness. 

    ASSESSMENT CRITERION 2 
    The different types of securities are named and an indication is given of how each can be used to secure a risk. 

    ASSESSMENT CRITERION 3 
    The existence of the securities is investigated in order to establish availability. 

    SPECIFIC OUTCOME 4 
    Assess a credit risk. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The available information is collated and interpreted in order to inform a decision. 

    ASSESSMENT CRITERION 2 
    The underwriting guidelines are used to make an underwriting decision based on the recommendation. 

    ASSESSMENT CRITERION 3 
    A synopsis of the financial information is compiled and a recommendation is made to reject or accept the financial risk. 


    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 able to identify and solve problems in which responses show that responsible decisions using critical thinking have been made in making an underwriting decision. 

    UNIT STANDARD CCFO WORKING 
    Learners are able to work effectively with others as a member of a team, group or organisation in accessing sources of information. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are able to collect, organise and critically evaluate information in accessing information to make an underwriting decision. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are able to communicate effectively in collating information and compiling a synopsis. 

    UNIT STANDARD CCFO SCIENCE 
    Learners are able to use technology effectively in underwriting a credit risk. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to see the world as a set of related systems in understanding the consequences of too much credit, refusing credit and breach of confidentiality. 

    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 15011, "Underwrite a credit risk", level 4, 4 credits.

    Search words: trade credit insurance. 

    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.