Assessor Resource

FNSRSK502
Assess risks

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to examine the likelihood of financial risks and their consequences, and assess the organisation’s exposure to those risks.

It applies to individuals who provide specialised knowledge, and who use systematic approaches to problem solving and make recommendations within organisational processes and procedures.

No licensing, legislative or certification requirements apply to this unit at the time of publication.

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. Develop risk evaluation criteria

1.1 Identify risks in organisational processes and procedures following the Australian Risk Management Standards

1.2 Develop risk evaluation criteria, including tolerance levels

2. Assess current exposure

2.1 Identify and apply appropriate risk assessment tools and establish probability of risk

2.2 Identify potential severity and/or impact or consequence of risk

2.3 Identify mitigating effect of existing controls and assess exposure to risk using evaluation criteria

3. Compare exposure with guidelines

3.1 Identify relevant guidelines and compare risk exposure levels with organisational guidelines

3.2 Compare exposure levels with industry and statutory obligations, and identify and report unacceptable residual risks

4. Prepare probability assessment

4.1 Analyse specific issues using measurement criteria

4.2 Prepare risk map that ranks and summarises threats and risk issues in consistent manner

5. Communicate with relevant internal and external stakeholders

5.1 Identify stakeholders and seek out their views

5.2 Provide information to stakeholders at each stage of assessing organisation’s exposure to risks

Evidence of the ability to:

effectively liaise and communicate with stakeholders

develop risk evaluation criteria and conduct effective analysis of financial and legislative risk situations

prepare a risk map prioritising risk, based on risk analysis

develop recommendations to mitigate risk.

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 explain the key features and purpose of Australian standards for risk management

analyse and discuss risk management principles and practices, and key terminology

outline the key organisational policy, procedures and operational guidelines relating to risk assessment

research risk exposure levels in the financial services industry

identify residual risk levels and check risk appetite levels for the industry

evaluate risk consequences for the organisation

identify and explain the role of internal and external stakeholders relevant to risk.

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

office equipment, technology, software and consumables

relevant legislation, regulations and codes of practice

relevant Australian standards relating to risk management.

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. Develop risk evaluation criteria

1.1 Identify risks in organisational processes and procedures following the Australian Risk Management Standards

1.2 Develop risk evaluation criteria, including tolerance levels

2. Assess current exposure

2.1 Identify and apply appropriate risk assessment tools and establish probability of risk

2.2 Identify potential severity and/or impact or consequence of risk

2.3 Identify mitigating effect of existing controls and assess exposure to risk using evaluation criteria

3. Compare exposure with guidelines

3.1 Identify relevant guidelines and compare risk exposure levels with organisational guidelines

3.2 Compare exposure levels with industry and statutory obligations, and identify and report unacceptable residual risks

4. Prepare probability assessment

4.1 Analyse specific issues using measurement criteria

4.2 Prepare risk map that ranks and summarises threats and risk issues in consistent manner

5. Communicate with relevant internal and external stakeholders

5.1 Identify stakeholders and seek out their views

5.2 Provide information to stakeholders at each stage of assessing organisation’s exposure to risks

Evidence of the ability to:

effectively liaise and communicate with stakeholders

develop risk evaluation criteria and conduct effective analysis of financial and legislative risk situations

prepare a risk map prioritising risk, based on risk analysis

develop recommendations to mitigate risk.

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 explain the key features and purpose of Australian standards for risk management

analyse and discuss risk management principles and practices, and key terminology

outline the key organisational policy, procedures and operational guidelines relating to risk assessment

research risk exposure levels in the financial services industry

identify residual risk levels and check risk appetite levels for the industry

evaluate risk consequences for the organisation

identify and explain the role of internal and external stakeholders relevant to risk.

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

office equipment, technology, software and consumables

relevant legislation, regulations and codes of practice

relevant Australian standards relating to risk management.

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
Identify risks in organisational processes and procedures following the Australian Risk Management Standards 
Develop risk evaluation criteria, including tolerance levels 
Identify and apply appropriate risk assessment tools and establish probability of risk 
Identify potential severity and/or impact or consequence of risk 
Identify mitigating effect of existing controls and assess exposure to risk using evaluation criteria 
Identify relevant guidelines and compare risk exposure levels with organisational guidelines 
Compare exposure levels with industry and statutory obligations, and identify and report unacceptable residual risks 
Analyse specific issues using measurement criteria 
Prepare risk map that ranks and summarises threats and risk issues in consistent manner 
Identify stakeholders and seek out their views 
Provide information to stakeholders at each stage of assessing organisation’s exposure to risks 

Forms

Assessment Cover Sheet

FNSRSK502 - Assess risks
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

FNSRSK502 - Assess risks

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: