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

FNSACC609A Mapping and Delivery Guide
Evaluate financial risk

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSACC609A - Evaluate financial risk
Description This unit describes the performance outcomes, skills and knowledge required to assess financial risk and exposure, analyse financial histories and establish processes to minimise risks associated with an organisation's cash flow or assets and securities.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.
Employability Skills This unit contains employability skills.
Learning Outcomes and Application The unit has application across all sectors of financial services industry and to job functions such as accountants that have responsibility for determining the organisation's exposure to financial risk.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites FNSACC503A Manage budgets and forecasts
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: Assess financial risk exposure
  • Magnitude and volatility of organisational risks are measured to determine the extent of risk exposure and the implications for financial strategies
  • Key factors supporting or driving risk exposure are identified and timeframes established to monitor and improve performance
  • Short-term and long-term financial outcomes and projections are compared with actual cash flows using standard financial analysis techniques to determine effects on liquidity and budget adjustments
       
Element: Develop risk management processes
  • Risk management options include assessments of alternatives, criteria for success, and estimates of long-term and short-term effects
  • Strategies are developed using standard financial analysis techniques to identify financial flows, trends in returns and adjustments in asset values
  • Financial recording systems are established to monitor and evaluate changes in market conditions and business needs using a range of data sources
  • Risk management strategies are developed that optimise the mix of asset structures and liabilities in operations and ensures flexibility to meet changing environments
       
Element: Analyse financial histories
  • Financial performance is evaluated using trends and patterns that identify the magnitude and volatility of financial exposures
  • Long and short-term financial outcomes are compared with forecast outcomes to assess variances and parameters in performance and the reliability of financial advice
  • Incidents and factors increasing or diminishing financial performance are identified and analysed using standard financial analysis techniques
       
Element: Establish processes to minimise risks
  • Recording systems to monitor financial outcomes are developed and reviewed to guide and document decision making
  • Inventories are maintained and established to ensure up-to-date records on the value of assets and liabilities
  • The contribution of organisational attitudes to risk taking is assessed and incorporated in the risk analysis process
  • Parameters for variances in financial outcomes are developed, reviewed and communicated to support financial decision making
       


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:

apply standard financial analysis techniques and knowledge of an organisation's attitude to risk to identify financial risk

develop risk management processes

analyse financial histories and establish processes to minimise risks.

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 an integrated financial software system and data.

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 which may include formal examinations

setting and reviewing workplace projects and 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, 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.

Required skills

well-developed communication skills to:

evaluate an organisation's financial performance risks, using questioning of personnel and management for confirmation

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

highly developed research skills for accessing and managing financial services information

well-developed literacy skills for analysingfinancial information and risk factors and preparing forecasts, risk management options and clear written advice

numeracy skills for financial calculations and analysis, estimating and forecasting

IT skills for developing and using integrated financial systems, spreadsheets and databases and internet information

learning skills to maintain knowledge of risk management principles, processes and procedures

high level problem solving skills to identify risk factors that have the potential to impact on organisations and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work and correctly schedule risk and financial performance monitoring and reporting

Required knowledge

ethical considerations for compliance

financial legislation such as:

taxable transactions

reporting requirements

methods of storing, recording and updating financial information

principles of internal control including statutory reporting

principles of risk management and budgetary control

understanding of organisational structures and lines of management authority

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.

Risk exposure may include:

contractual risks

credit risks

currency risks

environmental and operational risks

interest rate risks.

Factors supporting or driving risk may include:

employment costs

lending and borrowing environments

lending and repayment criteria

organisational program costs

payment and billing schedules.

Standard financial analysis techniques may include:

'what if' analysis

bivariate and multivariate analyses

capital budgeting

cost-benefit analysis

time series.

Risk management options may include:

comparative analysis

decision making authorities

forecasting

periodic reporting

policy statements

quantification of risks.

Financial recording systems may include:

accrual accounting reporting

budget reviews

comparative costings

operating procedures and manuals

organisational communication processes

transaction recording.

Data sources may include:

Australian Bureau of Statistics (ABS) economic data

budgets and forecasts

credit ratings

financial markets monitoring services

financial statements and reports

market valuations.

Asset structures and liabilities may include:

cash accounts

loans, leases and debts

personnel

plant and equipment

property investments

shares, bonds and securities.

Variances and parameters may include:

budget expenditures

profits and losses

rate of investment returns

unit costs.

Inventories may include:

assets and liabilities

compliance and completion timetables

cost structures

repayment and payment schedules

returns and performance over time.

Organisational attitudes may include:

proportional risk management

risk aversion

risk minimisation

risk taking.

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
Magnitude and volatility of organisational risks are measured to determine the extent of risk exposure and the implications for financial strategies 
Key factors supporting or driving risk exposure are identified and timeframes established to monitor and improve performance 
Short-term and long-term financial outcomes and projections are compared with actual cash flows using standard financial analysis techniques to determine effects on liquidity and budget adjustments 
Risk management options include assessments of alternatives, criteria for success, and estimates of long-term and short-term effects 
Strategies are developed using standard financial analysis techniques to identify financial flows, trends in returns and adjustments in asset values 
Financial recording systems are established to monitor and evaluate changes in market conditions and business needs using a range of data sources 
Risk management strategies are developed that optimise the mix of asset structures and liabilities in operations and ensures flexibility to meet changing environments 
Financial performance is evaluated using trends and patterns that identify the magnitude and volatility of financial exposures 
Long and short-term financial outcomes are compared with forecast outcomes to assess variances and parameters in performance and the reliability of financial advice 
Incidents and factors increasing or diminishing financial performance are identified and analysed using standard financial analysis techniques 
Recording systems to monitor financial outcomes are developed and reviewed to guide and document decision making 
Inventories are maintained and established to ensure up-to-date records on the value of assets and liabilities 
The contribution of organisational attitudes to risk taking is assessed and incorporated in the risk analysis process 
Parameters for variances in financial outcomes are developed, reviewed and communicated to support financial decision making 

Forms

Assessment Cover Sheet

FNSACC609A - Evaluate financial risk
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

FNSACC609A - Evaluate financial risk

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: