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

FNSACCT609B Mapping and Delivery Guide
Evaluate financial risk

Version 1.0
Issue Date: April 2024


Qualification -
Unit of Competency FNSACCT609B - Evaluate financial risk
Description This unit covers the competency to identify, assess and manage the risks associated with an organisations cash flow or assets and securities.This unit covers the competency to identify, assess and manage the risks associated with an organisations cash flow or assets and securities.
Employability Skills The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.
Learning Outcomes and Application This unit requires the application of skills and knowledge required to evaluate financial risk. The unit encompasses assessing financial risk and exposure, developing risk management processes, analysing financial histories and establishing processes to minimise risks. The unit has application across all sectors of financial services industry and can be applied to those job functions such as accountants that have responsibility for determining the organisations exposure to financial risk.This unit requires the application of skills and knowledge required to evaluate financial risk. The unit encompasses assessing financial risk and exposure, developing risk management processes, analysing financial histories and establishing processes to minimise risks. The unit has application across all sectors of financial services industry and can be applied to those job functions such as accountants that have responsibility for determining the organisations exposure to financial risk.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.
Prerequisites/co-requisites Not applicable.
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 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 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 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 strategy optimises 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 forecasted 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 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.

EVIDENCE GUIDE

Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.

Overview of assessment requirements

To achieve competency in this unit, a person must be able to demonstrate:

knowledge of standard financial analysis techniques

knowledge of organisation's attitude to risk

ability to identify financial risk

ability to develop risk management processes

ability to analyse financial histories

ability to establish processes to minimise risks

Critical aspects of evidence

Evidence required for demonstration of consistent performance:

Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.

Delivery/assessment relationship to other units:

Prerequisite units:

FNSACCT503B Manage budgets and forecasts.

Assessment requirements

Method of assessment:

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.

Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Context of assessment:

Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of personal/financial responsibility and accountability.

Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.

Resources required for assessment:

Assessment of this unit of competence requires access to suitable resources to demonstrate competence.

Assessment instruments, including personal planner and assessment record book.

Access to registered provider of assessment services.

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 KNOWLEDGE&SKILLS

Knowledge requirements include:

principles of risk management and budgetary control

methods of storing, recording and updating financial information

principles of internal control (including statutory reporting)

financial legislation (eg taxable transactions, reporting requirements)

ethical considerations for compliance

understanding of organisational structures and lines of management authority

Skills requirements include:

recording, gathering and consolidating financial information

researching and identifying applicable accounting standards and decisions

interpersonal skills and communication skills (eg liaising, listening, consulting)

report writing and preparation

numeracy skills for calculation of data

use computers, organisational accounting software systems, spreadsheet software programs and telecommunication devices to achieve workplace outcomes

The Range Statement relates to the unit of competency as a whole. It allows for different work environments and situations that will affect performance.

The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.

Risk exposure may include:

credit risks

interest rate risks

contractual risks

currency risks

environmental and operational risk

Factors supporting or driving risk may include:

organisational program costs

employment costs

lending and repayment criteria

payment and billing schedules

lending and borrowing environments

Standard financial analysis techniques may include:

capital budgeting

cost-benefit analysis

'what if' analysis

time series

bivariate and multivariate analyses

Risk management options may include:

quantification of risks

periodic reporting

decision making authorities

policy statements

forecasting

comparative analysis

Financial recording systems may include:

accrual accounting reporting

transaction recording

operating procedures and manuals

comparative costings

budget reviews

organisational communication processes

Data sources may include:

budgets and forecasts

financial statements and reports

market valuations

Australian Bureau of Statistics (ABS) economic data

financial markets monitoring services (eg Reuters)

credit ratings

Asset structures and liabilities may include:

property investments

shares, bonds, securities

loans, leases, debts

plant and equipment

personnel

cash accounts

Variances and parameters may include:

budget expenditures

profits and losses

rate of investment returns

unit costs

Inventories may include:

assets and liabilities

repayment and payment schedules

compliance and completion timetables

cost structures

returns and performance over time

Organisational attitudes may include:

risk aversion

risk taking

risk minimisation

proportional risk management

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 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 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 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 strategy optimises 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 forecasted 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 risk analysis process 
Parameters for variances in financial outcomes are developed, reviewed and communicated to support financial decision making 

Forms

Assessment Cover Sheet

FNSACCT609B - 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

FNSACCT609B - 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: