Assessor Resource

FNSRSK602A
Determine and manage risk exposure strategies

Assessment tool

Version 1.0
Issue Date: May 2024


It may be applied within financial product development and marketing, insurance underwriting and other contexts within the financial services industry.

This unit describes the performance outcomes, skills and knowledge required to analyse risk factors for financial investment and insurance products, determine appropriate risk exposure management strategies and communicate these to relevant staff and intermediaries and personally manage the risk assessment strategies. It is aimed at setting the strategy for portfolio managers, including what types of business will be targeted and not targeted.

This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.

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:

interpret and apply organisation policy and procedures and comply with legislation, regulations and industry codes of practice

effectively analyse, determine and manage financial risk exposure strategies.

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 organisation and industry risk management documentation and information.

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

evaluating samples of work

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

highly developed communication skills to:

determine and confirm organisation risk strategy requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

highly developed research and analysis for accessing, interpreting and managing complex information

well-developed risk assessment and management skills

numeracy and IT skills for:

identifying and using statistical information

accessing and using appropriate software such as word processors, spreadsheets and databases and internet information

well-developed literacy skills for analysingrisk information and financial products to ensure appropriateness to the organisation

well-developed problem solving skills to identify any issues that have the potential to impact on risk strategies and compliance 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

actuarial and financial principles and processes

industry sector compliance requirements such as the General Insurance Code of practice

organisation products and services

identification of liability loss exposures

organisation policy, procedures guidelines and authorities

relevant industry hazards and risk exposures

relevant legislation, regulatory guidelines and industry sector compliance requirements, such as:

Insurance Contracts Act

Privacy Act

Trade Practices

Corporations Act

risk assessment and prevention methods and application

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.

Business risk elements may include:

adequacy of capital

credit risk

earnings

insurance underwriting risk

liquidity

litigation and other legal risk

market efficiency

market risk

nature of business

operational risk

proper markets

quality of strategy

sources of business and distribution mechanisms

type of customer, user or member

types of products and services.

Control risk elements may include:

allocation and definition of management responsibilities

business continuity

clarity of legal ownership structure

compliance

corporate governance

cultural issues and business ethics

financial and regulatory reporting and accounting policies

human resources

IT systems

internal audit

jurisdictions and characteristics of controllers or group entities

management information

outsourcing to third party providers

policies, procedures and controls

professional advisers

relationship with the rest of the group

risk management

treatment of customers or users.

Sources of information may include:

actuaries

brokers

clients

financiers

intermediaries

lawyers and solicitors

managers or supervisors

marketing and sales personnel

medical practitioners

product developers

reinsurers

underwriters.

Risk is:

a term used to designate a peril against an insured or against uncertainty of a financial loss.

Risk acceptability factors vary according to:

potential impact on the organisation

value and type of product or portfolio.

Risk acceptance criteria refers to:

criteria against which a risk may be measured for acceptability.

Risk management is:

a procedure to minimise the adverse effects of a possible financial loss by identifying potential sources of loss

measuring the financial consequences and likelihood of a loss occurring

using controls to minimise actual losses or their financial consequences.

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
Appropriate criteria for acceptance or rejection of risks are identified and evaluated 
Performance targets for the organisation's capacity to assess and accept risk are determined 
Organisation's business risk elements and control risk elements are identified 
Accurate, reliable and up-to-date information on these elements is identified and collated in a form suitable for analysis with relevant data accessed and comprehensively investigated and reviewed 
Risk elements are evaluated against known exposure factors and compliance with relevant legislation and organisation policy is considered 
Risk acceptability factors are evaluated within the context of organisation's mitigating capabilities 
Risk acceptability factors are evaluated within the context of organisation requirements 
Terms and conditions of risk acceptance criteria for low hazard risk areas are established that meet market conditions and are within organisation accepted levels of exposure 
Terms and conditions of risk acceptance for high hazard risk areas are established that meet market conditions and are within organisation accepted levels of exposure 
Risk acceptance strategies, criteria and guidelines are clearly documented, and meet the requirements of relevant guidelines and are determined within delegated authorities 
Relevant feedback is obtained and reviewed and the risk acceptance criteria, and associated authority limitations, conditions and guidelines finalised 
Risk management for each risk is selected and an implementation plan developed 
Procedures that staff should follow in operationalising strategy are identified and developed 
Risk assessment strategies, criteria and guidelines are communicated to relevant staff and intermediaries 
Risk acceptance strategy implementation is monitored 
Risk assessment strategies are evaluated to determine effectiveness in achieving risk management objectives and reviewed as required 
Results are documented and communicated to relevant staff 

Forms

Assessment Cover Sheet

FNSRSK602A - Determine and manage risk exposure strategies
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

FNSRSK602A - Determine and manage risk exposure strategies

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: