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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. Develop risk evaluation criteria
   • Identify risks in organisational processes and procedures following the Australian Risk Management Standards
   • Develop risk evaluation criteria, including tolerance levels
2. Assess current exposure
   • 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
3. Compare exposure with guidelines
   • 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
4. Prepare probability assessment
   • Analyse specific issues using measurement criteria
   • Prepare risk map that ranks and summarises threats and risk issues in consistent manner
5. Communicate with relevant internal and external stakeholders
   • Identify stakeholders and seek out their views
   • Provide information to stakeholders at each stage of assessing organisation’s exposure to risks

Performance Evidence

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.

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Knowledge Evidence

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.

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