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Elements and Performance Criteria

1. Determine appropriate risk assessment strategies
   • Identify and evaluate appropriate criteria for acceptance or rejection of risks using Australian risk management standards
   • Determine performance targets for organisation’s capacity to assess and accept risk
   • Identify organisation’s business risk elements and control risk elements
2. Evaluate risk and compliance factors
   • 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
   • Evaluate risk elements against known exposure factors and consider compliance with relevant legislation, regulatory guidelines, industry sector compliance requirements and organisational policy
   • Evaluate risk acceptability factors within context of organisation’s mitigating capabilities
   • Evaluate risk acceptability factors within context of organisational requirements
3. Establish risk acceptance criteria
   • 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
   • 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
   • Clearly document risk acceptance strategies, criteria and guidelines to meet requirements of relevant guidelines determined within delegated authorities
   • Obtain and review relevant feedback and finalise risk acceptance criteria, and associated authority limitations, conditions and guidelines
4. Develop risk management strategies
   • Select risk management for each risk and develop implementation plan
   • Identify and develop procedures that staff should follow in operationalising strategy
5. Implement risk assessment strategies
   • Communicate risk assessment strategies, criteria and guidelines to relevant staff and intermediaries
   • Monitor risk acceptance strategy implementation
6. Evaluate and review risk assessment strategies
   • Evaluate risk assessment strategies to determine effectiveness in achieving risk management objectives, and review as required
   • Document and communicate results to relevant staff

Performance Evidence

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.

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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 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.

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