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: 

Investigate ways of managing financial risk in own lives 
SAQA US ID UNIT STANDARD TITLE
10387  Investigate ways of managing financial risk in own lives 
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 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2002-06-12  2004-12-02  SAQA 0742/02 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2005-12-02   2008-12-02  

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
117158  Investigate ways of managing financial risk in own lives  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
Learners who achieve this unit standard understand the financial risk that can impact on their own lives and make decisions to reduce the effect of that risk.

The qualifying learner is capable of:
  • Describing factors that contribute to financial risk in own life.
  • Explaining the individual`s liabilities and duties with regard to service contracts and the use of utilities.
  • Investigating short term insurance as a means of managing own financial risk.
  • Describing the risks associated with retirement.
  • Investigating ways to reduce risk associated with accidents and medical conditions.
  • Explaining the financial consequences of contravening the law. 

  • 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, Mathematical Literacy and Financial Literacy at NQF Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is
  • Contractual obligations associated with service contracts.
  • Liabilities in the use of utilities.
  • Exposure to risk that could be controlled by short term insurance, medical cover and retirement funding.
  • Unplanned events include acts of terrorism, political instability in SADCC, crime, floods, bankruptcy, retrenchment, drought and liquidation of a company.
  • Personal contracts include life insurance, short term insurance, marriage, lease, loan agreements, mortgage bond agreements, credit cards, cell phone contracts, DSTV and hire purchase agreements.
  • Small print clauses include exclusions or loadings on insurance contracts, notice of termination, default on payment, non-disclosure and a residual clause on an hp agreement.
  • Service contracts include DSTV, garden services, pool services, hire of TV and the like.
  • Utilities include water, refuse, sewage, electricity and telephone.
  • Classes of short term insurance include fire, theft, motor vehicle, professional indemnity, public liability and personal indemnity.
  • Retirement funding includes defined contribution funds, defined benefit funds, unit trusts, retirement annuities and endowments.
  • Expenses that could be reduced when one is a pensioner include travelling costs.
  • Expenses that could possibly increase in one`s retirement include medical costs and other costs associated with increasing age.
  • Road/traffic offences include use of a cell phone while driving, driving under the influence of alcohol, driver`s licence, speeding, disregarding road signs, unroadworthiness of vehicle.
  • Licence offences relate to SABC, car, drivers, animal, fishing gun and recreational permits.
  • Financial risk associated with criminal offences includes legal costs, loss of income, unemployability,
  • Reckless behaviour/negligence applies to public, professional and personal liability. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Describe factors that contribute to financial risk in own life. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Unplanned events that expose an individual to risk are listed with reference to economic, social, political, environmental and other events in South Africa and an indication is given of the risks that could be controlled through careful financial planning. 

    ASSESSMENT CRITERION 2 
    2. The basic elements of a contract are explained with reference to three different personal contracts and an indication is given of the consequences of not honouring each contract. 

    ASSESSMENT CRITERION 3 
    3. The small print clauses in three personal contracts are analysed and an indication is given of the implications of the clauses for the individual and the associated financial risk. 

    ASSESSMENT CRITERION 4 
    4. The concepts of absolute and collateral cession are explained with reference to how the two types impact on financial risk. 

    ASSESSMENT CRITERION 5 
    5. The concept of suretyship is explained with reference to how this can impact on personal liability and therefore on financial risk. 

    SPECIFIC OUTCOME 2 
    Explain the individual's liabilities. 
    OUTCOME NOTES 
    Explain the individual's liabilities and duties with regard to service contracts and the use of utilities. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of contracting a service is compared with purchasing a product. 

    ASSESSMENT CRITERION 2 
    2. The kind of service contracts that an individual may enter into are listed in a table and an indication is given of the cost of each service, when payment for the contract is due, and the implications if the individual does not honour the contract. 

    ASSESSMENT CRITERION 3 
    3. The concepts of a deposit and a once off payment are explained and an indication is given of the implications and risk associated with each. 

    ASSESSMENT CRITERION 4 
    4. The financial implications of paying a lump sum in advance for a service or paying monthly are explained and real savings or loss are calculated for three examples. 

    ASSESSMENT CRITERION 5 
    5. The concept of a utility is explained with examples. 

    ASSESSMENT CRITERION 6 
    6. The liability associated with utilities are listed in a table and an indication is given of the how the cost of each utility is calculated, when payment is due, and the implications if the individual does not pay for the utility. 

    ASSESSMENT CRITERION 7 
    7. Ways of reducing the cost of utilities are investigated for two different utilities and a decision is made on how to make the most cost effective use of the utility. 

    ASSESSMENT CRITERION 8 
    8. The issue of moral obligation of the user of a service contract or utility is debated from the point of view of the user, the service provider and other parties who may be directly or indirectly affected by the actions of the users. 

    SPECIFIC OUTCOME 3 
    Investigate short term insurance as a means of reducing financial risk in own life. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The different classes of short term insurance are listed and an indication is given of the cover in each case. 

    ASSESSMENT CRITERION 2 
    2. The risks in own life that could be reduced by short term insurance are analysed and possible options for cover are compared in terms of benefits and cost. 

    ASSESSMENT CRITERION 3 
    3 The need to update short term insurance policies regularly is explained and an indication is given of the implications of under insurance. 

    ASSESSMENT CRITERION 4 
    4 Ways of reducing insurance premiums are investigated and the implications of a decision to spend less on insurance are indicated for five different scenarios. 

    SPECIFIC OUTCOME 4 
    Investigate the financial risk associated with retirement. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The current government social benefits for pensioners are investigated and the monthly pension is compared to the individual's current financial needs. 

    ASSESSMENT CRITERION 2 
    2. Expenses that could be reduced when one is a pensioner are estimated based on current expenditure. 

    ASSESSMENT CRITERION 3 
    3. Expenses that could possibly increase in one's retirement are listed and an indication is given of the financial risk associated with retirement. 

    ASSESSMENT CRITERION 4 
    4. The need for retirement planning is discussed and avenues for ensuring financial security in retirement are explored for three different scenarios. 

    ASSESSMENT CRITERION 5 
    5. The amount that the individual needs to invest in order to secure a comfortable retirement is calculated and a decision is made about retirement savings. 

    ASSESSMENT CRITERION 6 
    6. The risk associated with different types of retirement funding is explained with examples. 

    SPECIFIC OUTCOME 5 
    Investigate ways to reduce risk associated with accidents and medical conditions. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Facilities available at state medical facilities are investigated in terms of availability, cost and adequacy. 

    ASSESSMENT CRITERION 2 
    2. Three different medical scheme options are compared in term of benefits and cost. 

    ASSESSMENT CRITERION 3 
    3. Medical insurance and personal accident insurance are explored as alternatives to medical scheme cover and a decision is made about the kind of product best suited to own needs. 

    ASSESSMENT CRITERION 4 
    4. Ways of reducing the risk in a medical emergency are explored for own situation. 

    ASSESSMENT CRITERION 5 
    5. Events that are not covered in a selected type of medical cover and an indication are given of the risk that their exclusion implies to financial security. 

    SPECIFIC OUTCOME 6 
    Explain the financial consequences of contravening the law. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Behaviour that could result in a fine due to contravention of a law or regulation is investigated and the possible financial or other consequences are presented in a table. 
    ASSESSMENT CRITERION RANGE 
    Range: road/traffic offences, licences, contravention of environmental legislation, municipal bylaws, carrying weapons, committing criminal offences, reckless behaviour/negligence.
     


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA,
    INSQA framework for assessment and moderation. 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify, solve problems and make decisions relating to risk in own financial situation. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is able to organise and manage him/herself effectively when designing an appropriate record keeping system for tax and other related personal documents. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in order to reduce own financial risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and written presentation when researching ways to reduce financial risk in own life and tabulating the consequences of contravening the law. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation in identifying financial risk in own life and possible ways of reducing that risk, and in understanding the consequences and financial risk that result from contravening the law. 

    UNIT STANDARD CCFO CONTRIBUTING 
    The learner is able to participate as a responsible citizen in the life of local, national and global communities by debating the moral issues relating to payment for services and utilities and by reducing the financial risk in his/her own life thereby contributing in a small way to the financial stability of the country. 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by 117158, which is 'Investigate ways of managing financial risk in own lives', Level 4, 5 Credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  24454   Further Education and Training Certificate: Real Estate  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2007-11-28  Was SERVICES until Last Date for Achievement 
    Fundamental  20638   National Certificate: Collective Investment Schemes  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Fundamental  48640   National Certificate: Financial Services Management  Level 4  Level TBA: Pre-2009 was L4  Reregistered  2023-06-30  INSETA 
    Fundamental  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 
    Fundamental  20639   National Certificate: Healthcare Benefits Administration: Claims Assessing  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Fundamental  20773   National Certificate: Long Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Fundamental  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 
    Fundamental  21796   National Certificate: Short Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2005-06-12  Was INSETA until Last Date for Achievement 
    Elective  67462   Further Education and Training Certificate: Music Industry: Sound Technology  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  48808   Further Education and Training Certificate: Performing Arts  Level 4  NQF Level 04  Reregistered  2023-06-30  CATHSSETA 
    Elective  48669   National Certificate: Live Event Technical Production  Level 4  Level TBA: Pre-2009 was L4  Reregistered  2023-06-30  CATHSSETA 


    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. Discovery Life Ltd 
    2. Faisit (Pty) Ltd 
    3. Intec College 
    4. Invuya Institute of Learning (Pty) Ltd 
    5. Masifunde Training Centre (Pty) Ltd 
    6. Umfolozi FET College - Central Office 



    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.