Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

AHCAGB606 Mapping and Delivery Guide
Manage price risk through trading strategy

Version 1.0
Issue Date: April 2024


Qualification -
Unit of Competency AHCAGB606 - Manage price risk through trading strategy
Description
Employability Skills
Learning Outcomes and Application This unit of competency describes the skills and knowledge required to manage price risk by developing a trading strategy.All work must be carried out to comply with workplace procedures, work health and safety legislation and codes.This unit applies to individuals who take personal responsibility and exercise autonomy in undertaking complex work. They must analyse information and exercise judgement to complete a range of advanced skilled activities. They work in contexts that are subject to change and adapt a range of fundamental principles accordingly.No occupational licensing, legislative or certification requirements are known to apply to this unit at the time of publication.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Competency is to be assessed in the workplace or simulated environment that accurately reflects performance in a real workplace setting.

Assessors must satisfy current standards for RTOs.
Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Conduct market research
  • Collate and evaluate estimates of supply and demand
  • Analyse past trends and assess possible future scenarios
  • Relate own products to market indicators
       
Element: Determine price required
  • Calculate cost of production and determine break-even price
  • Calculate overhead costs to be allocated against the enterprise
  • Determine margins for profit and risk
  • Set forward price objectives to meet cost of production, contribution to overheads and profit required
  • Evaluate personal attitude to risk
       
Element: Develop sales plan
  • Evaluate cash markets and assess projected price trends
  • Obtain and assess forward contract information
  • Obtain and assess futures prices
  • Evaluate selling options against price objectives and the assessment of price movement risk
  • Assess taxation and cash flow implications
  • Develop appropriate mix of sale options in a trading strategy
  • Develop contingency plans to address possible shifts in price trend
       
Element: Implement trading strategy
  • Seek appropriate expertise as required
  • Monitor market information and adjust trading strategy according to contingency plans
       


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.

Element

Performance criteria

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Conduct market research

1.1 Collate and evaluate estimates of supply and demand

1.2 Analyse past trends and assess possible future scenarios

1.3 Relate own products to market indicators

2. Determine price required

2.1 Calculate cost of production and determine break-even price

2.2 Calculate overhead costs to be allocated against the enterprise

2.3 Determine margins for profit and risk

2.4 Set forward price objectives to meet cost of production, contribution to overheads and profit required

2.5 Evaluate personal attitude to risk

3. Develop sales plan

3.1 Evaluate cash markets and assess projected price trends

3.2 Obtain and assess forward contract information

3.3 Obtain and assess futures prices

3.4 Evaluate selling options against price objectives and the assessment of price movement risk

3.5 Assess taxation and cash flow implications

3.6 Develop appropriate mix of sale options in a trading strategy

3.7 Develop contingency plans to address possible shifts in price trend

4. Implement trading strategy

4.1 Seek appropriate expertise as required

4.2 Monitor market information and adjust trading strategy according to contingency plans

The candidate must be assessed on their ability to integrate and apply the performance requirements of this unit in a workplace setting. Performance must be demonstrated consistently over time and in a suitable range of contexts.

The candidate must provide evidence that they can:

determine cost of production

allocate overhead costs against enterprises

assess risk to financial returns through market or currency movements

analyse trends and evaluating forecasts

monitor and assess price movements

implement a trading strategy for price risk management.

The candidate must demonstrate knowledge of:

supply, demand and price relationships

price trends and sources of market information/forecasts

cost of production

overhead costs

risk assessment and attitudes to risk

selling options for the relevant commodity

operation of futures markets, forward selling arrangements, put options

foreign exchange rates

contract law

cash flow and taxation planning

contingency planning.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, 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.

Element

Performance criteria

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Conduct market research

1.1 Collate and evaluate estimates of supply and demand

1.2 Analyse past trends and assess possible future scenarios

1.3 Relate own products to market indicators

2. Determine price required

2.1 Calculate cost of production and determine break-even price

2.2 Calculate overhead costs to be allocated against the enterprise

2.3 Determine margins for profit and risk

2.4 Set forward price objectives to meet cost of production, contribution to overheads and profit required

2.5 Evaluate personal attitude to risk

3. Develop sales plan

3.1 Evaluate cash markets and assess projected price trends

3.2 Obtain and assess forward contract information

3.3 Obtain and assess futures prices

3.4 Evaluate selling options against price objectives and the assessment of price movement risk

3.5 Assess taxation and cash flow implications

3.6 Develop appropriate mix of sale options in a trading strategy

3.7 Develop contingency plans to address possible shifts in price trend

4. Implement trading strategy

4.1 Seek appropriate expertise as required

4.2 Monitor market information and adjust trading strategy according to contingency plans

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
Collate and evaluate estimates of supply and demand 
Analyse past trends and assess possible future scenarios 
Relate own products to market indicators 
Calculate cost of production and determine break-even price 
Calculate overhead costs to be allocated against the enterprise 
Determine margins for profit and risk 
Set forward price objectives to meet cost of production, contribution to overheads and profit required 
Evaluate personal attitude to risk 
Evaluate cash markets and assess projected price trends 
Obtain and assess forward contract information 
Obtain and assess futures prices 
Evaluate selling options against price objectives and the assessment of price movement risk 
Assess taxation and cash flow implications 
Develop appropriate mix of sale options in a trading strategy 
Develop contingency plans to address possible shifts in price trend 
Seek appropriate expertise as required 
Monitor market information and adjust trading strategy according to contingency plans 

Forms

Assessment Cover Sheet

AHCAGB606 - Manage price risk through trading strategy
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

AHCAGB606 - Manage price risk through trading strategy

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: