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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Monitor and collect information on risk factors
   • Identify product type so that nature of risk can be identified and handled accordingly
   • Identify, monitor and collect relevant information
2. Analyse data collected
   • Establish reliability and validity of data
   • Assess risk factors associated with product against known exposure factors
   • Analyse all information collected on risk factors for product using appropriate methods and documentation
   • Identify need for additional information to further evaluate risk
3. Determine risk rating for product
   • Determine acceptability of risk using all available information in accordance with organisational policy and procedures, and underwriting guidelines
   • Establish risk rating that minimises risk liability within delegated authority
   • Document basis for risk rating decision
   • Consider compliance with relevant legislation and organisational policy
   • Document risk rating information in format that may be used to guide underwriting and product or policy amendment decisions
4. Communicate results to appropriate personnel
   • Present results of research and analysis to appropriate personnel in a clear, concise format
   • Review risk rating recommendations against existing products and organisational policy
   • Finalise risk rating recommendations and notify relevant personnel

Performance Evidence

Evidence of the ability to:

collect, analyse and interpret information relevant for assessing risk

accurately determine acceptable risk rating for the organisation’s products

effectively document, communicate and monitor the risk ratings

comply with organisational policy, procedures, legislation, regulations and industry codes of practice

present research findings in a suitable format to enable assessment of liabilities.

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

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Knowledge Evidence

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

describe basic actuarial principles used to assess risk and return on investment

identify the key features of relevant legislation, regulatory guidelines and industry sector codes of practice

explain industry market position relative to product or line of business

outline organisational information technology systems required for determining risk

describe organisational policy, procedures, underwriting guidelines and authorities covering:

best underwriting guides (BUG)

loss control guides

identify and describe insurance and investment products and the risks associated with these products

define the difference between treaty and facultative reinsurance as it applies to risk

explain the relationship between underwriting and rate making

identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements as they apply to:

insurance contracts

privacy

consumer protection

financial services

corporations

describe risk analysis and prevention methods and their application

explain types of risk and identify the probability of occurrence.

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