This unit may apply to forecasting job roles in any sector of the financial services industry.

ELEMENT

PERFORMANCE CRITERIA

1. Plan preparation timetable

1.1. All critical milestones are identified to ensure financial forecasts and projections can be prepared within timeframes

1.2. Business plans, financial forecasting and processing systems are reviewed to identify timeframes and parameters and any potential conflicts

2. Identify assumptions and parameters

2.1. Business plans and exception reports are reviewed to identify and resolve conflicts in assumptions

2.2. Assumptions and parameters are reviewed to ensure compliance with organisation policy and procedures

2.3. Current and historical financial reports are analysed to establish trends and the external environment examined to gain an objective overview

3. Issue instructions and relevant aids for preparation of forecasts and projections

3.1. Instructions issued are clear and unambiguous and comply with organisation format to ensure ease of use and consistency of interpretation

3.2. Types of business are identified to enable effective financial models to be selected with training provided to ensure comprehensive understanding and effective use of the models by users

4. Collect, consolidate, model and analyse data

4.1. Data is reviewed to ensure consistency with actual results and model used with analysis results documented in a clear and unambiguous way

4.2. Data collected are reliable, valid, complete and comprehensive

4.3. Processing is completed in accordance with established timetable and data are consolidated in a logical structured format that enables ready analysis

5. Document results and obtain approval

5.1. Results are documented in a clear and understandable manner and in a format suitable to meet needs of target users

5.2. All approvals are obtained in accordance with management objectives, financial and organisation policies and the results distributed within the timetable

Required skills

well-developed communication skills to:

determine and confirm forecasting and projection requirements, using questioning and active listening as required

negotiate timelines and responsibilities

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

well-developed research and analysis skills for accessing, analysing and managing financial services information and analysing data

well-developed literacy skills for preparing clear written reports for organisations and business units in required formats

highly developed numeracy skills for financial calculations and analysis, estimating and forecasting

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

learning skills to maintain knowledge of forecasting systems and best practice and procedures

problem solving skills to identify any forecasting issues 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 reporting

Required knowledge

financial industry codes of practice

forecasting techniques, models and best practice

organisation policy and procedures

relevant Acts and regulations impacting on the financial services industry

relevant legal systems and procedures impacting on the financial services industry

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:

identify, interpret and comply with organisation policies and procedures regarding preparing financial forecasts and projections

apply standard accounting principles and techniques

accurately identify assumptions and parameters of forecasts

collect, consolidate, model and analyse data in a timely manner, document results and obtain approval where required.

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

access to organisational policies and procedures documentation.

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

setting and reviewing business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

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.

Forecasts may include:

capital expenditure

claims

investment income

long-term (e.g. 5 year)

management expenses

premiums

reinsurance levels

short-term (e.g. 1 year).

Organisation policy and procedures may include:

computer system documentation

internal control guidelines

operations manuals.

Current and historical financial reports may include:

change in renewal date of policies

commission and charges ratios

customer retention

loss reports

new business reports.

External environment may include:

activities of competitors

consumer activity

finance markets

government policy

inflation rates

market place

market conditions.

Financial models may include:

account structure at summary level and key ratios

alternative scenarios

cost or profit centre analysis

format for calculations

standalone or be driven from computer ledgers

sensitivity analysis

simulations.

Users may include:

Australian Bureau of Statistics (ABS)

banks

branch managers

claims managers

directors

distribution stream managers

finance section

product managers

regional or state managers

shareholders

underwriting managers.

Unit sector

Organisational skills

This unit contains employability skills.