Application
This unit describes the skills and knowledge required to examine the likelihood of risks in financial markets and their consequences and assess the organisation’s exposure to those risks.
It applies to individuals who use specialised knowledge within a financial markets’ context, and who use systematic approaches to problem solving and make recommendations within organisational processes and procedures.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
1. Research financial markets organisational risk management framework | 1.1 Research the main risks for financial markets 1.2 Analyse the impact of regulatory and technological changes on the financial markets risk landscape 1.3 Research risk mitigation strategies and controls used for managing key financial markets risks 1.4 Identify the key risks outlined in the risk management framework of the organisation |
2. Identify and assess individual risk management responsibilities | 2.1 Identify individual role in relation to the three lines of defence 2.2 Identify key risks for the organisation relevant to own job role 2.3 Analyse the link between own Key Performance Indicators (KPIs) and the risk framework of the organisation |
3. Review individual work practices | 3.1 Critically analyse work tasks and processes to identify potential risks 3.2 Analyse controls used to detect and prevent risks associated with own job role |
4. Respond to risk events | 4.1 Assess anomalies in data or processes 4.2 Escalate anomalies in data or processes according to organisational policies and procedures 4.3 Record relevant information in relation to risk event, including any required actions |
5. Identify and monitor ongoing requirements of risk management | 5.1 Monitor organisational risks within responsibility of own job role 5.2 Identify and research ongoing issues relating to financial markets organisational risk management frameworks 5.3 Monitor and respond to changes to risk management framework requirements and organisational procedures |
Evidence of Performance
The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:
identify at least two risks relevant to own job role.
In the course of the above, the candidate must:
liaise and communicate with required persons for escalations
evaluate consequence of unmitigated risks for the organisation
analyse own work environment to identify anomalies that may indicate risk
critically assess data and processes in own work environment to identify risk.
Evidence of Knowledge
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
key risk management principles and practices, including:
risk tolerance, appetite, exposure, detection, and prevention
risk mitigation strategies and controls used for managing key financial markets risks
key steps of the risk management process
the three lines of defence
risk evaluation criteria
risk maps
prioritisation methods
residual risk
risk culture
organisational policies, procedures and operational guidelines relating to risk evaluation criteria and risk assessment
the effects of regulatory and technological change on the financial markets risk landscape
methods for identifying data and process anomalies
organisational policies and procedures for escalation of anomalies and risk events.
Assessment Conditions
Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
This includes access to:
office equipment, technology, software and consumables
relevant organisational policies and procedures, legislation, regulations and codes of practice.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Reading | Critically analyses complex documentation from a variety of sources and consolidates information relating to specific criteria to determine requirements |
Writing | Uses a range of formats and structures to report and present information logically |
Oral Communication | Participates in verbal exchanges using active listening and questioning techniques to convey information and elicit the views and opinions of internal and external personnel Clearly explains detailed information using concepts, language, tone and pace appropriate to the audience |
Problem Solving | Identifies and resolves key business issues, processes and practices that may have legal or organisational implications Uses formal analytical thinking techniques to identify or predict issues and generate possible solutions |
Self-management | Accepts responsibility for planning and sequencing complex tasks and workload, negotiating key aspects with others and taking into account capabilities, efficiencies and effectiveness Investigates new and innovative ideas as a means to continuously improve work practices and processes through consultation, and formal analytical thinking |
Technology | Uses digital systems and technologies to enter, store or access information |
Sectors
Risk management