Assessor Resource

FNSISV403
Survey potential risk exposure

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to survey risk exposure, including examination of risk, analysis of data, reporting and making recommendations specifying loss control measures.

It applies to individuals in underwriting roles in a range of insurance sectors and may be applied within organisations of various sizes and across a range of client bases.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Determine hazards and exposures

1.1 Undertake comprehensive physical examination of risk, including hazard indicators

1.2 Interview client and relevant third parties to identify potential risk components

2. Analyse level of hazards and exposures

2.1 Assess risk type against known exposure factors

2.2 Assess risk type for compliance with relevant legislation and organisational policy

2.3 Determine acceptability of risk within organisation’s underwriting requirements

2.4 Estimate maximum probable loss, where applicable

3. Report and recommend on condition of risk exposure

3.1 Document condition and improvements according to organisational policy and procedures

3.2 Specify and apply loss control measures as condition of risk acceptance and determination of renewal

4. Monitor and review loss control measures

4.1 Follow up loss control measures and record according to organisational policy and procedures

4.2 Monitor risk improvement against loss control measures

4.3 Conduct follow up risk surveys as required

Evidence of the ability to:

interpret and comply with all legal obligations and organisational procedures

develop a suitable insurance contract or policy after identifying and thoroughly assessing hazards and exposures to identify risks

conduct comprehensive surveys of potential risk exposure and develop recommendations to control or minimise risk of loss

monitor loss control measures in accordance with underwriter’s guidelines and organisational procedures

monitor risk improvements against loss control measures.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements

explain the calculation of maximum probable loss (MPL)

describe the potential market share for the product or line of business

outline organisational policy, procedures, underwriting guidelines and levels of authority

describe relevant underwriting principles related to insurance products and define the difference between treaty and facultative reinsurance

outline relative industry hazards

identify and describe key features of relevant legislative and compliance requirements

explain risk prevention methods and application

identify relevant statutory hazard, health and safety legislation.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance services field of work and include access to:

organisational records

organisational policy, procedures, legislation and regulations as they relate to contracts of insurance

a range of common technology and software.

Assessors must satisfy NVR/AQTF assessor requirements.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Determine hazards and exposures

1.1 Undertake comprehensive physical examination of risk, including hazard indicators

1.2 Interview client and relevant third parties to identify potential risk components

2. Analyse level of hazards and exposures

2.1 Assess risk type against known exposure factors

2.2 Assess risk type for compliance with relevant legislation and organisational policy

2.3 Determine acceptability of risk within organisation’s underwriting requirements

2.4 Estimate maximum probable loss, where applicable

3. Report and recommend on condition of risk exposure

3.1 Document condition and improvements according to organisational policy and procedures

3.2 Specify and apply loss control measures as condition of risk acceptance and determination of renewal

4. Monitor and review loss control measures

4.1 Follow up loss control measures and record according to organisational policy and procedures

4.2 Monitor risk improvement against loss control measures

4.3 Conduct follow up risk surveys as required

Evidence of the ability to:

interpret and comply with all legal obligations and organisational procedures

develop a suitable insurance contract or policy after identifying and thoroughly assessing hazards and exposures to identify risks

conduct comprehensive surveys of potential risk exposure and develop recommendations to control or minimise risk of loss

monitor loss control measures in accordance with underwriter’s guidelines and organisational procedures

monitor risk improvements against loss control measures.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements

explain the calculation of maximum probable loss (MPL)

describe the potential market share for the product or line of business

outline organisational policy, procedures, underwriting guidelines and levels of authority

describe relevant underwriting principles related to insurance products and define the difference between treaty and facultative reinsurance

outline relative industry hazards

identify and describe key features of relevant legislative and compliance requirements

explain risk prevention methods and application

identify relevant statutory hazard, health and safety legislation.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the insurance services field of work and include access to:

organisational records

organisational policy, procedures, legislation and regulations as they relate to contracts of insurance

a range of common technology and software.

Assessors must satisfy NVR/AQTF assessor requirements.
Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Undertake comprehensive physical examination of risk, including hazard indicators 
Interview client and relevant third parties to identify potential risk components 
Assess risk type against known exposure factors 
Assess risk type for compliance with relevant legislation and organisational policy 
Determine acceptability of risk within organisation’s underwriting requirements 
Estimate maximum probable loss, where applicable 
Document condition and improvements according to organisational policy and procedures 
Specify and apply loss control measures as condition of risk acceptance and determination of renewal 
Follow up loss control measures and record according to organisational policy and procedures 
Monitor risk improvement against loss control measures 
Conduct follow up risk surveys as required 

Forms

Assessment Cover Sheet

FNSISV403 - Survey potential risk exposure
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSISV403 - Survey potential risk exposure

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: