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 appropriate risk assessment strategies | 1.1 Identify and evaluate appropriate criteria for acceptance or rejection of risks using Australian risk management standards 1.2 Determine performance targets for organisation’s capacity to assess and accept risk 1.3 Identify organisation’s business risk elements and control risk elements |
2. Evaluate risk and compliance factors | 2.1 Identify and collate accurate, reliable and up-to-date information on these elements in form suitable for analysis, and comprehensively investigate and review data accessed 2.2 Evaluate risk elements against known exposure factors and consider compliance with relevant legislation, regulatory guidelines, industry sector compliance requirements and organisational policy 2.3 Evaluate risk acceptability factors within context of organisation’s mitigating capabilities 2.4 Evaluate risk acceptability factors within context of organisational requirements |
3. Establish risk acceptance criteria | 3.1 Establish terms and conditions of risk acceptance criteria for low hazard risk areas that meet market conditions and are within organisation’s accepted levels of exposure 3.2 Establish terms and conditions of risk acceptance for high hazard risk areas that meet market conditions and are within organisation’s accepted levels of exposure 3.3 Clearly document risk acceptance strategies, criteria and guidelines to meet requirements of relevant guidelines determined within delegated authorities 3.4 Obtain and review relevant feedback and finalise risk acceptance criteria, and associated authority limitations, conditions and guidelines |
4. Develop risk management strategies | 4.1 Select risk management for each risk and develop implementation plan 4.2 Identify and develop procedures that staff should follow in operationalising strategy |
5. Implement risk assessment strategies | 5.1 Communicate risk assessment strategies, criteria and guidelines to relevant staff and intermediaries 5.2 Monitor risk acceptance strategy implementation |
6. Evaluate and review risk assessment strategies | 6.1 Evaluate risk assessment strategies to determine effectiveness in achieving risk management objectives, and review as required 6.2 Document and communicate results to relevant staff |
Evidence of the ability to:
effectively communicate and document information, and liaise with relevant staff and stakeholders
develop risk acceptance criteria, identify high and low hazard financial and legislative risk areas, and develop appropriate risk mitigation strategies
manage the implementation strategy
monitor, evaluate and check the effectiveness of the risk management strategy.
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 as they relate to risk management
outline the key features of actuarial and financial principles and processes related to risk exposure strategies
analyse and discuss relevant industry hazards and risk exposures
compare and contrast risk assessment and prevention methods, and application
outline the key organisational products and services, and associated risks and liability loss exposures
describe the key features of industry sector compliance requirements
describe the key features of relevant legislation, regulatory guidelines and industry sector compliance requirements as they relate to:
insurance contracts
privacy
consumer protection
corporations
describe key features of organisational policy, procedures, guidelines and authorities related to risk management.
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
organisational and industry risk management documentation.
Assessors must satisfy NVR/AQTF assessor requirements.