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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Apply the risk management process to investigate alternatives for risk transfer 
SAQA US ID UNIT STANDARD TITLE
242602  Apply the risk management process to investigate alternatives for risk transfer 
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 5  Level TBA: Pre-2009 was L5  5 
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 does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for Auditors, Business Relation Consultants, Risk Managers, Financial Managers, Financial Service Providers, Bankers, Compliance Officers, Brokers and Intermediaries who give advice relating to risk finance and/or work in the field of Risk Management.

The qualifying learner is capable of:
  • Explaining the concept of alternative risk transfer.
  • Analysing options for transfer of risk to internal control/management mechanisms.
  • Analysing insurance alternatives for risk transfer.
  • Analysing the financial alternatives for risk transfer. 
    		•

    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 4. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is:
  • Predetermined financial criteria include, but are not limited to, loss history, liquidity, capacity and client base.
  • Predetermined financial criteria where there is insurable risk include, but are not limited to, loss history, liquidity, capacity, incurred but not reported losses and client base.
  • Alternative risk transfer includes, but is not limited to, Bank assurance, share savings swop, self-funding, captives and self-insurance. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the concept of alternative risk transfer. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Reasons why an organisation would seek to transfer risk are explained with examples. 

    ASSESSMENT CRITERION 2 
    The underlying principles of alternative risk transfer are explained with examples. 

    ASSESSMENT CRITERION 3 
    Possible indicators of risk appetite in a business are identified in order to determine ways of mitigating risk in relation to cost. 

    ASSESSMENT CRITERION 4 
    Possible indicators of risk tolerance in a business are identified in order to determine ways of mitigating risk in relation to cost. 

    SPECIFIC OUTCOME 2 
    Analyse options for transferring risk to internal control/management mechanisms. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The risk management process is applied to determine what residual risks can be retained and managed by a specific entity. 

    ASSESSMENT CRITERION 2 
    Internal alternatives for retaining risk are explained for a specific situation. 

    ASSESSMENT CRITERION 3 
    A non-insurance, non-financial solution is proposed for dealing with retained or residual risk. 

    SPECIFIC OUTCOME 3 
    Analyse insurance alternatives for risk transfer. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The risk management process is applied to determine the level of insurance risk transfer. 

    ASSESSMENT CRITERION 2 
    Possible insurance alternatives for risk transfer are presented and substantiated for transferring risk in a specific situation. 

    ASSESSMENT CRITERION 3 
    The legal and financial integrity of the proposed alternatives for risk transfer are validated against predetermined criteria. 

    SPECIFIC OUTCOME 4 
    Analyse the financial alternatives for risk transfer. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The risk management process is applied to determine whether there could be a non-insurance financial risk alternative for risk transfer. 

    ASSESSMENT CRITERION 2 
    Financial alternatives for risk transfer in a specific situation are explained and substantiated for a non-insurance proposal. 

    ASSESSMENT CRITERION 3 
    The legal and financial integrity of the proposed alternatives for risk transfer are validated against predetermined criteria. 


    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 alternatives for risk transfer in an organisation. 

    UNIT STANDARD CCFO COLLECTING 
    Learners are capable of collecting, organising and critically evaluating information in analysing financial, insurance and internal mechanisms for risk transfer. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners are capable of communicating effectively in proposing and substantiating alternatives for risk transfer. 

    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 
    Search words: risk management process, risk transfer. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  57918   National Certificate: Short Term Insurance  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  INSETA 
    Elective  66611   National Certificate: Wealth Management  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    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. African Resources & Financial Training (Pty) Ltd 
    2. CKP Development Agency (Pty) Ltd 
    3. Ray Strodl Consulting (Pty) Ltd 
    4. Ripple Effect 4 (Pty) Ltd 
    5. The Graduate Institute of Financial Sciences (Pty) Ltd 
    6. The Institute of Health Risk Managers (Pty) Ltd 
    7. Universal Healthcare Services Pty Ltd 


    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.