This unit applies to brokers who may undertake the risk analysis or arrange for a specialist risk consultant to provide a risk assessment depending on whether the risk portfolio is standard or complex. It may be applied within organisations of various sizes and across a range of customer bases.

ELEMENT

PERFORMANCE CRITERIA

1. Select methods to assess clients risks

1.1. Risk assessment is completed in compliance with brokerage guidelines

1.2. Industry and general environmental information is collected as input to risk analysis

1.3. Specialists with relevant expertise to conduct risk assessment and prepare risk report are recommended to client

1.4. Relevant criteria for selection of specialist is provided to client

1.5. Comprehensive records of risk analysis and actions taken are maintained

2. Identify how risks are managed

2.1. Types of risks are identified and ranked as insurable and uninsurable and how they are to be managed

2.2. Potential losses identified and probability of loss assessed

2.3. Insurable risks classified as standards or above (low risk) or below standard (high risk)

2.4. Controls to minimise effect of potential losses are identified

2.5. Risks to be managed by insurance are identified

3. Make recommendation on management of risks to client

3.1. Stakeholders are identified

3.2. Recommendations for insurance and risk management plan covering resources, timing, responsibilities and monitoring and reporting of impact on overall risk exposure are recommended to client

3.3. Views of stakeholders are sought and information is provided to stakeholders at each stage of assessing the organisation's exposure to risks

4. Prepare information for insurer

4.1. Information to prepare accurate broking skip is extracted from risk assessment information

4.2. Information is presented in a manner that allows an insurer to judge the type and extent of cover

Required skills

well-developed communication skills to:

determine and confirm information from clients and others, using questioning and active listening techniques

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

numeracy and IT skills to:

perform calculations related to achieving required outcomes

use computer applications (word processing, spreadsheet, database, specific purpose computer systems) to assist in achieving required outcomes

access and update records electronically

access web-based information services

well-developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information

research and analysis skills for accessing and interpreting relevant information

interpersonal skills

organisational skills, including the ability to plan and sequence work

Required knowledge

methods of identifying risks

principles of risk management

understanding of the nature and scope of business

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 risk management principles and practices

identify risk specialists for additional input.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the 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 organisation records

access to organisational policies and procedures.

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

observing processes and procedures in workplaces

verbal or written questioning on underpinning knowledge and skills

evaluating samples of work

accessing and validating third party reports

setting and reviewing workplace projects and business simulations or scenarios.

Guidance information for assessment

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 may include:

how they can occur and impact on the achievement of business objectives

their area of impact

their nature.

Analysis may include:

mathematical calculations or statistics

qualitative and quantitative data or information.

Risk assessment may include:

based on likelihood, consequences and mitigating effects.

Ranked may include:

according to exposure level

consequences/severity

likelihood of occurrence

management priorities/policies.

Controls may include:

measures which limit the impact of risks.

Stakeholders may include:

those within the organisation who have an interest in the function under consideration, including:

policy makers

those providing services

those receiving services from this organisation.

Unit sector

Insurance broking

FNSIBK401A

Research and analyse client and industry information for a broking risk assessment

This unit contains employability skills.