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

FNSRSK602 Mapping and Delivery Guide
Determine and manage risk exposure strategies

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSRSK602 - Determine and manage risk exposure strategies
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to analyse risk factors for financial investment and insurance products, determine appropriate risk exposure management strategies, communicate these strategies to relevant staff and intermediaries, and personally manage the risk assessment strategies. It is aimed at setting the strategy for portfolio managers, including what types of business will be targeted and not targeted.It applies to individuals who use specialised knowledge, systematic approaches and analytical skills to provide leadership in managing strategic organisational activity.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the risk management field of work and include access to:

office equipment, technology, software and consumables

relevant legislation, regulations and codes of practice

relevant Australian standards relating to risk management

organisational and industry risk management documentation.

Assessors must satisfy NVR/AQTF assessor requirements.
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: 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
       
Element: 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
       
Element: 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
       
Element: 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
       
Element: Implement risk assessment strategies
  • Communicate risk assessment strategies, criteria and guidelines to relevant staff and intermediaries
  • Monitor risk acceptance strategy implementation
       
Element: 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
       


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. Determine appropriate risk assessment strategies

1.1 Identify and evaluate appropriate criteria for acceptance or rejection of risks using Australian risk management standards

1.2 Determine performance targets for organisation’s capacity to assess and accept risk

1.3 Identify organisation’s business risk elements and control risk elements

2. Evaluate risk and compliance factors

2.1 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

2.2 Evaluate risk elements against known exposure factors and consider compliance with relevant legislation, regulatory guidelines, industry sector compliance requirements and organisational policy

2.3 Evaluate risk acceptability factors within context of organisation’s mitigating capabilities

2.4 Evaluate risk acceptability factors within context of organisational requirements

3. Establish risk acceptance criteria

3.1 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

3.2 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

3.3 Clearly document risk acceptance strategies, criteria and guidelines to meet requirements of relevant guidelines determined within delegated authorities

3.4 Obtain and review relevant feedback and finalise risk acceptance criteria, and associated authority limitations, conditions and guidelines

4. Develop risk management strategies

4.1 Select risk management for each risk and develop implementation plan

4.2 Identify and develop procedures that staff should follow in operationalising strategy

5. Implement risk assessment strategies

5.1 Communicate risk assessment strategies, criteria and guidelines to relevant staff and intermediaries

5.2 Monitor risk acceptance strategy implementation

6. Evaluate and review risk assessment strategies

6.1 Evaluate risk assessment strategies to determine effectiveness in achieving risk management objectives, and review as required

6.2 Document and communicate results to relevant staff

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.

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.

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. Determine appropriate risk assessment strategies

1.1 Identify and evaluate appropriate criteria for acceptance or rejection of risks using Australian risk management standards

1.2 Determine performance targets for organisation’s capacity to assess and accept risk

1.3 Identify organisation’s business risk elements and control risk elements

2. Evaluate risk and compliance factors

2.1 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

2.2 Evaluate risk elements against known exposure factors and consider compliance with relevant legislation, regulatory guidelines, industry sector compliance requirements and organisational policy

2.3 Evaluate risk acceptability factors within context of organisation’s mitigating capabilities

2.4 Evaluate risk acceptability factors within context of organisational requirements

3. Establish risk acceptance criteria

3.1 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

3.2 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

3.3 Clearly document risk acceptance strategies, criteria and guidelines to meet requirements of relevant guidelines determined within delegated authorities

3.4 Obtain and review relevant feedback and finalise risk acceptance criteria, and associated authority limitations, conditions and guidelines

4. Develop risk management strategies

4.1 Select risk management for each risk and develop implementation plan

4.2 Identify and develop procedures that staff should follow in operationalising strategy

5. Implement risk assessment strategies

5.1 Communicate risk assessment strategies, criteria and guidelines to relevant staff and intermediaries

5.2 Monitor risk acceptance strategy implementation

6. Evaluate and review risk assessment strategies

6.1 Evaluate risk assessment strategies to determine effectiveness in achieving risk management objectives, and review as required

6.2 Document and communicate results to relevant staff

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
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 
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 
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 
Select risk management for each risk and develop implementation plan 
Identify and develop procedures that staff should follow in operationalising strategy 
Communicate risk assessment strategies, criteria and guidelines to relevant staff and intermediaries 
Monitor risk acceptance strategy implementation 
Evaluate risk assessment strategies to determine effectiveness in achieving risk management objectives, and review as required 
Document and communicate results to relevant staff 

Forms

Assessment Cover Sheet

FNSRSK602 - Determine and manage risk exposure strategies
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

FNSRSK602 - Determine and manage risk exposure strategies

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: