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 application of the nature of risk and the risk management process 
SAQA US ID UNIT STANDARD TITLE
242658  Demonstrate knowledge and application of the nature of risk and the risk management process 
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  4 
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
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
14995  Explain the nature of risk and the risk management process  Level 4  NQF Level 04  4   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is a basic introduction to the management of risk. It introduces a risk management process and the fundamentals of risk management in a work environment. It is intended for learners who manage operational risk in organisations or business units in both the public and private sectors and who give advice on commercial, industrial and/or corporate insurance. It will be useful for Specialist Risk Managers, Risk Managers, Safety Officers, Entrepreneurs, Surveyors in Insurance Organisations, Underwriters, Risk Advisors, Loss Control Officers, Learners in Risk Management Services, Short Term Insurance Consultants and Intermediaries.

The qualifying learner is capable of:
  • Explaining the concept of risk in risk management.
  • Demonstrating knowledge and understanding of the risk management process.
  • Describing risk management in the context of an organisation.
  • Proposing a model to manage risk in a specific organisation or business unit. 
    		•

    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:
  • Risk includes upside and downside risk, opportunities and threats in authentic situations.
  • Risk in small, medium and large commercial enterprises, including, but not limited to medical schemes, the public sector, manufacturers, distributors, retailers and service organisations.
  • Managers include, but are not limited to, directors, senior, middle and first line management.
  • Audit reports include, but are not limited to, financial, forensic, compliance and other internal and external audits.
  • Risk profiles include high, medium and low risks.
  • Possible risk control techniques include, but are not limited to, policies. procedures, communication, reporting lines, allocated resources, financial provision and organisational resources. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the concept of risk in risk management. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The concept of risk is explained for different contexts. 

    ASSESSMENT CRITERION 2 
    The concept of uncertainty is explained with examples. 

    ASSESSMENT CRITERION 3 
    The negative consequences of risk are explained with reference to damage to assets, consequential losses, injury to people, financial losses and legal liability. 

    ASSESSMENT CRITERION 4 
    Events that could constitute a risk are identified in terms of hazards and perils. 

    ASSESSMENT CRITERION 5 
    Circumstances that could constitute an opportunity for an organisation are discussed with reference to the related risk. 

    SPECIFIC OUTCOME 2 
    Demonstrate knowledge and understanding of the risk management process. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    A risk management process is described with reference to the typical stages in the process and the application in a specific organisation. 

    ASSESSMENT CRITERION 2 
    Different ways of identifying different kinds of risk are named and an indication is given of when each method is appropriate. 

    ASSESSMENT CRITERION 3 
    The evaluation of risk is explained with reference to probability, severity, frequency, estimated maximum loss and maximum probable loss. 

    ASSESSMENT CRITERION 4 
    Risk control techniques are described with examples. 

    ASSESSMENT CRITERION 5 
    Risk financing techniques are explained with reference to contractual transfer, insurance and self-funding techniques. 

    SPECIFIC OUTCOME 3 
    Describe risk management in the context of an organisation. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The roles of management and employees in managing risk are outlined with examples. 

    ASSESSMENT CRITERION 2 
    The management of risk is explained in terms of possible risk control techniques. 

    ASSESSMENT CRITERION 3 
    The importance of audit reports and the measurement of compliance are explained with examples. 

    SPECIFIC OUTCOME 4 
    Propose a model to manage risk in a specific organisation or business unit. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    A risk profile is developed to grade identified risks in a selected organisation or business unit. 

    ASSESSMENT CRITERION 2 
    Possible risk control and risk finance options are investigated for a selected organisation or business unit. 

    ASSESSMENT CRITERION 3 
    Knowledge of a risk management process is applied to propose or adapt a model to manage risk in a selected organisation or business unit. 


    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 proposing a risk management model for a specific situation. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are capable of collecting, organising and critically evaluating information in developing risk profiles and investigating finance options. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are capable of seeing the world as a set of related systems in identifying risks and proposing a risk management model. 

    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 14995, "Explain the nature of risk and the risk management process", Level 4, 4 credits.

    Search words: operational risk, risk management, risk, risk management process. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  79626   Further Education and Training Certificate: Commercial Property and Facilities Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  SERVICES 
    Core  57849   Further Education and Training Certificate: Dangerous Goods: Multi-modal Transportation  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2016-12-31  TETA 
    Core  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.