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: 

Underwrite a credit risk 
SAQA US ID UNIT STANDARD TITLE
15011  Underwrite a credit risk 
ORIGINATOR
SGB Financial Services 
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  4 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 		 2003-10-08  2006-10-08  SAQA 0150/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-10-08   2010-10-08  

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 is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
242680  Evaluate a credit risk  Level 4  NQF Level 04  6   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners who work in the field of credit insurance.

The qualifying learner is capable of:
  • Accessing information in order to make an underwriting decision.
  • Understanding legal aspects that impact on credit risk.
  • Making an underwriting decision based on a financial statement.
  • Assessing a credit risk. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this Unit Standard. Learners should be competent in Communication and Mathematical and Financial Literacy at NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is
  • Sources of information include, but are not limited to, 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 
    1. The risk factors associated with a specific industry re explained for three different industries. 

    ASSESSMENT CRITERION 2 
    2. The risk factors associated with three sub-sectors of a specific industry are explained with examples. 

    ASSESSMENT CRITERION 3 
    3. The criteria for registration of a sole proprietary, partnership, closed corporation, private company (Pty), public company (Ltd) trust and incorporated are explained with reference to the liability of members, directors or proprietor. 

    ASSESSMENT CRITERION 4 
    4. The criteria for deregistration of a sole proprietary, partnership, closed corporation, private company (Pty), public company (Ltd), trust and incorporated are explained with reference to the liability of members, directors or proprietor. 

    ASSESSMENT CRITERION 5 
    5. The history of a specific entity is investigated in order to determine the credit risk. 

    ASSESSMENT CRITERION 6 
    6. Adverse information is analysed and a decision is made whether to maintain or withdraw the risk. 

    ASSESSMENT CRITERION 7 
    7. The difference between a rumour and a fact is explained and an indication is given of how a rumour should be conformed. 

    ASSESSMENT CRITERION 8 
    8. 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 
    Demonstrate knowledge and understanding of legal aspects that impact on credit risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The concept of a legal entity is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. The concept of law of insolvency is explained and an indication is given of how insolvency impacts on credit risk. 

    SPECIFIC OUTCOME 3 
    Make an underwriting decision based on a financial statement. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. A financial statement is analysed in order to establish the liquidity of an entity. 

    ASSESSMENT CRITERION 2 
    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 
    3. The existence of the securities is investigated in order to establish availability. 

    ASSESSMENT CRITERION 4 
    4. A synopsis of the financial information is compiled and a recommendation is made to reject or accept the financial risk. 

    SPECIFIC OUTCOME 4 
    Assess a credit risk. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    1. The available information is collated and interpreted in order to make an informed decision. 

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

    ASSESSMENT CRITERION 3 
    3. The consequences of issuing too many credit facilities are explained with examples. 

    ASSESSMENT CRITERION 4 
    4. The consequences of not recommending credit are explained with examples. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Accreditation for this Unit Standard shall be obtained from the relevant Education and Training Quality Assurance Body, through summative and formative assessment by a registered assessor.
  • Assessors must be registered as an Assessor with the INSQA or with an ETQA that has a Memorandum of Understanding with the INSQA
  • Moderators must be registered as assessors with INSQA, or with an ETQA that has a Memorandum of Agreement with INSQA.
  • Training providers must be accredited by the relevant ETQA.

    Moderation should include both internal and external moderation where applicable 
    		•

    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 ORGANISING 
    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 an 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 breach of confidentiality. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242680, "Evaluate a credit risk", level 4, 6 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2007-02-11  Was INSETA until Last Date for Achievement 
    Elective  24396   National Certificate: Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered"     		 2006-10-08  Was INSETA until Last Date for Achievement 


    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.