Overview of assessment

This unit of competency could be assessed through case studies and practical demonstration of identifying and responding to risks in an agency environment. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.

Critical aspects for assessment and evidence required to demonstrate competency in this unit

A person who demonstrates competency in this unit must be able to provide evidence of:

identifying risks in an agency environment

identifying causes and potential impact of risks on agency, clients and other stakeholders

responding to risks in an agency environment in line with scope of personal responsibilities as well as agency and legislative requirements

assessing personal skills in identifying and responding to agency risk.

Context of and specific resources for assessment

Resource implications for assessment include:

access to suitable simulated or real opportunities and resources to demonstrate competence

assessment instruments that may include personal planner and assessment record book

access to a registered provider of assessment services.

Where applicable, physical resources should include equipment modified for people with disabilities.

Access must be provided to appropriate learning and/or assessment support when required.

Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.

Validity and sufficiency of evidence require that:

competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace

where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence

all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence

where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time

assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills:

ability to communicate with and relate to a range of people from diverse social, economic and cultural backgrounds and with varying physical and mental abilities

application of risk identification skills

computing skills to access agency information on procedures for identifying and responding to risks

decision making and problem solving skills to identify risks and make decisions consistent with agency, legislative and ethical requirements

literacy skills to access and interpret a variety of texts, including legislation, regulations and rules of ethics; prepare general information and papers; prepare formal and informal letters, reports and applications; and complete standard and statutory forms

organisational skills to undertake work-related tasks associated with identifying and responding to risks

research skills to identify documents and information relating to identifying and responding to risks.

Required knowledge and understanding:

agency risk-related policies and procedures

Australian and New Zealand risk management standards

causes of risks

complaint-handling procedures

consumer risks

impact of risks on agency, clients and other stakeholders

procedures and systems for identifying and responding to risks

relevant federal, and state or territory legislation and local government regulations relating to:

anti-discrimination and equal employment opportunity

anti-money laundering

auctions

consumer protection, fair trading and trade practices

environment and sustainability

employment and industrial relations

financial services

leasing

OHS

privacy

property sales and management

sources of information on risk

sources of risks

techniques and tools for identifying risks

types of risks.

Types of risks may relate to:

administrative and business systems, policies and practices

commercial and legal relationships between the agency, consumers and other organisations

consumer risk

economic and financial circumstances

individual actions, such as discrimination and ineffective communication

management activities and controls

natural events

non-compliance with legislative and regulatory requirements, including:

consumer protection

OHS

trade practices

non-compliance with quality system

physical and personal security

political circumstances, such as legislative change

property ownership, including intellectual property

technological and technical issues, both internal and external to the agency, such as loss of data.

Agency, clients and other stakeholders may include:

consumers and clients

co-owners

financial institutions that have an interest in the agency

principals

staff and others to whom a duty of care is owed.

Causes of risks may include:

commercial and legal relationships

economic circumstances and scenarios

human behaviour

inaccurate information provided by clients

individual activities

management activities and controls

natural events

political circumstances

technological issues.

Potential impact of risks may include:

capital reserves

cash flow viability and resulting liquidity

goodwill value

nett worth of the business

return on investment.

Agency procedures for responding to risks may include:

discussion with supervisor and colleagues

documentation of risks

reporting risk to immediate supervisor.