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: 

Investigate ways of managing financial risk in own lives 
SAQA US ID UNIT STANDARD TITLE
117158  Investigate ways of managing financial risk in own lives 
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
10387  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 reducing financial risk in own life.
  • 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.
  • Behaviour that could result in a fine includes, but is not limited to road/traffic offences, licences, contravention of environmental legislation, municipal bylaws, carrying weapons, committing criminal offences, reckless behaviour/negligence. 

  • Specific Outcomes and Assessment Criteria: 

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

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 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 
    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 
    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 any associated financial risk. 

    ASSESSMENT CRITERION 4 
    The concept of suretyship is explained with reference to how this can impact on personal liability and therefore on financial risk. 

    ASSESSMENT CRITERION 5 
    The concepts of absolute and collateral cession are explained with reference to how the two types impact on financial risk. 

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

    ASSESSMENT CRITERIA
     

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

    ASSESSMENT CRITERION 2 
    The concept of contracting a service is compared with purchasing a product. 

    ASSESSMENT CRITERION 3 
    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 4 
    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 5 
    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 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 
    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 
    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 
    The different classes of short term insurance are listed and an indication is given of the cover in each case. 

    ASSESSMENT CRITERION 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 
    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 
    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 ways to reduce risk associated with accidents and medical conditions. 

    ASSESSMENT CRITERIA
     

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

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

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

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

    SPECIFIC OUTCOME 5 
    Explain the financial consequences of contravening the law. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 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. 


    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. 

    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 
    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 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 has replaced 10387 which was "Investigate ways of managing financial risk in own lives", Level 4 with 6 credits 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  49197   Further Education and Training Certificate: Social Housing Supervision  Level 4  NQF Level 04  Reregistered  2023-06-30  PSETA 
    Fundamental  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Fundamental  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Fundamental  49356   Further Education and Training Certificate: Medical Claims Assessing  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Fundamental  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Fundamental  66610   Further Education and Training Certificate: Short Term Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Fundamental  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 
    Fundamental  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Reregistered  2023-06-30  INSETA 
    Elective  49256   Further Education and Training Certificate: Counselling  Level 4  NQF Level 04  Reregistered  2023-06-30  HW SETA 
    Elective  61451   Further Education and Training Certificate: Criminology  Level 4  NQF Level 04  Reregistered  2023-06-30  SAS SETA 
    Elective  48856   Further Education and Training Certificate: Criminology  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2007-10-13  Was SAS SETA until Last Date for Achievement 
    Elective  65989   Further Education and Training Certificate: Human Settlements Development  Level 4  NQF Level 04  Reregistered  2023-06-30  CETA 


    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. ALCARI 233 CC T/A ALCARI (Eversdal)(TP) 
    3. Alcari Learning Centre (Pty) Ltd 
    4. BRC Solutions (Pty) Ltd 
    5. CAPRICON TVET COLLEGE 
    6. CKP Development Agency (Pty) Ltd. 
    7. De Vries Management & Training Services cc 
    8. DSBI (Pty) Ltd 
    9. EJW Financial Services (Pty) Ltd 
    10. EKURHULENI EAST COLLEGE 
    11. Elangeni College for FET - Pinetown Campus 
    12. Executive People Development Solutions (Pty) Ltd 
    13. Faisit (Pty) Ltd 
    14. Intec College 
    15. Intelligo Solutions Pty (Ltd) 
    16. Invuya Institute of Learning (Pty) Ltd 
    17. Majuba FET College - Central Office 
    18. Masifunde Training Centre (Pty) Ltd 
    19. Northlink College - Central Office 
    20. Octomate (Pty) Ltd 
    21. Old Mutual Life Assurance Company South Africa 
    22. Outsurance Insurance Company Ltd 
    23. Ray Strodl Consulting (Pty) Ltd 
    24. Ripple Effect 4 (Pty) Ltd 
    25. RJM Educational Consulting PTY LTD 
    26. Sanlam Life Insurance Ltd 
    27. Sanlam Life Insurance Ltd. 
    28. South West Gauteng College - Central Office 
    29. The Academy of Financial Markets 
    30. The Institute of Health Risk Managers (Pty) Ltd 
    31. Tshwane South College for (ECD Academy) 



    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.