Application
This unit describes the skills and knowledge required to interpret an organisation's financial risk management strategies in terms of own work, and effectively use risk mitigation and elimination techniques and tools.
It applies to individuals who use specialised knowledge, follow organisational policy and strategies, and use discretion within limits of own job role to manage risk.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Identify application of risk management strategies to job role | 1.1 Research legislative and regulatory requirements and appropriate risk management standards relating to risk management, and relate to own job role 1.2 Access and accurately interpret organisational policy and procedures for risk management 1.3 Clarify and confirm risk management role with relevant stakeholders as required |
2. Apply risk management strategies | 2.1 Determine appropriate organisational strategies and tools for controlling risks in own job role 2.2 Identify and apply control measures for cross-organisation risks 2.3 Choose and implement control measures for own area of operation and responsibilities |
3. Identify and propose changes to improve risk management strategies | 3.1 Maintain currency of understanding and application of risk management strategies 3.2 Audit and review risk strategy implementation to improve treatment of risks 3.3 Recommend improvements in risk management, relevant to own job role, to management 3.4 Model best practice risk management in own performance |
Evidence of Performance
Evidence of the ability to:
interpret, comply with and review organisational financial risk management strategies
recommend risk mitigation improvements and risk control measures
audit compliance of risk implementation strategies within the organisation
undertake a proactive risk management and support role within the organisation.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
explain the key features and purpose of the Australian standards relating to risk management
describe different types of risk and identify risk factors in own job role
compare and contrast methods of identifying financial risks
outline the key organisational policy and procedures relating to risk management processes and strategies
describe the organisational tools and strategies used in managing risk
explain the key principles of risk management
outline current industry risk management practices and risk mitigation strategies.
Assessment Conditions
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 governing risk management.
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.2, 2.1, 3.2 | Critically analyses complex documentation from a variety of sources and consolidates information relating to specific criteria to determine requirements |
Writing | 1.3, 3.2, 3.3 | Prepares documentation and correspondence using clear language, correct spelling and terminology |
Oral Communication | 1.3, 3.3 | Articulates clearly using vocabulary suitable to audience to convey or request information Uses listening and questioning techniques to confirm understanding |
Navigate the world of work | 1.1, 1.2, 2.1, 2.3, 3.1, 3.2, 3.4 | Develops, maintains and applies knowledge of policies, procedures, legislation and regulations relevant to current role Takes personal responsibility for following explicit and implicit policies, procedures and legislative requirements |
Interact with others | 1.3, 3.3 | Selects and uses appropriate conventions and protocols when communicating with diverse stakeholders in a range of work contexts |
Get the work done | 2.1, 2.2, 2.3, 3.1-3.3 | Takes responsibility for planning, sequencing and prioritising tasks and own workload for efficiency and effective outcomes Uses formal analytical thinking techniques to identify issues and generate possible solutions, seeking input from others as required Contributes to continuous improvement of current work practices by applying principles of analytical and lateral thinking |
Sectors
Risk management