Assessor Resource

FNSRSK502A
Assess risks

Assessment tool

Version 1.0
Issue Date: May 2024


This applies in any sector of the financial services industry where job roles involve risk management.

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

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

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

Employability Skills

This unit contains employability skills.



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.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

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

Evidence of the ability to:

apply risk management principles and practices

effectively analyse financial risk situations

evaluate risk consequences and develop recommendations for mitigation.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to Australian Standard 4360 Risk Management.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing business simulations or scenarios

accessing and validating third party reports.

Guidance information for assessment

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.

Required skills

well-developed communication skills to:

determine and confirm organisation risk situation with internal and external stakeholders, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

risk assessment and management skills

numeracy and IT skills to make financial calculations and use word processors, spreadsheets, databases and internet information

literacy skills for analysingrisk information to ensure appropriateness to the organisation

problem solving skills to assessrisk issues that have the potential to impact on organisation and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work

Required knowledge

Australian Standard 4360 Risk Management

organisation policies, procedures and operational guidelines

principles of risk management

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Criteria may be defined in:

financial terms

non-financial terms which may impact on:

reputation

personal suffering

environmental degradation

loss of reputation or image.

Probability refers to:

the likelihood of the particular event or issue crystallising.

Impact refers to:

the scale of the effect on statutory objectives if the issue or event crystallises.

Consequences refer to:

areas of impact might include:

people

environment

business cessation

the impact of occurrence.

Mitigation refers to:

any of a range of activities which will reduce the likelihood or consequences of the risk and may include:

application of the hierarchy of control for physical hazards

hedging for currency exchange risks

insurance for business risks.

Controls are:

measures which limit the impact of risks.

Exposure to risk assessed is based on:

consequences

likelihood

mitigating effects.

Ranking of risk is according to:

exposure level

likelihood of occurrence

consequences

severity

management priorities and policies.

Stakeholders are:

internal to the organisation who have an interest in the function under consideration, including:

those providing services

policy makers

those receiving services from this organisation

external to the organisation who have an interest the organisation under being assessed, including:

suppliers

customers

regulators

shareholders.

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
Risks are identified in organisation processes and procedures 
Risk evaluation criteria, including tolerance levels, are developed 
Appropriate risk assessment tools are identified and applied and probability of risk established 
Potential severity and/or impact of each consequence of risk is identified 
Mitigating effect of existing controls is identified and exposure to risk assessed using evaluation criteria 
Relevant guidelines are identified and risk exposure levels compared with organisational guidelines 
Exposure levels are compared with industry and statutory obligations with unacceptable residual risks identified and reported 
Specific issues are analysed using measurement criteria 
A risk map is prepared that ranks and summarises threats and risk issues in a consistent manner 
Stakeholders are identified and their views sought 
Information is provided to stakeholders at each stage of assessing the organisation's exposure to risks 

Forms

Assessment Cover Sheet

FNSRSK502A - 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

FNSRSK502A - 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: