Application
This unit describes the skills and knowledge required to identify the financial risks faced by an organisation, evaluate existing risk controls and recommend improvements appropriate to mitigate the impact of those risks.
It applies to individuals who use specialised knowledge, systematic approaches and analytical skills to monitor and manage information relevant to organisational activity.
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. Communicate with relevant internal and external stakeholders at each stage | 1.1 Identify stakeholders and provide information pertinent to financial and legislative risk identification 1.2 Seek out and record views of stakeholders 1.3 Explain use of Australian Risk Management Standards in risk identification and risk control |
2. Identify and describe risk | 2.1 Define organisational environment and boundaries of review in consultation with stakeholders 2.2 Identify risk cluster elements and describe risks clearly to stakeholders 2.3 Obtain information on risks as identified by stakeholders |
3. Identify and assess controls | 3.1 Identify existing controls and evaluate their effectiveness 3.2 Establish need for additional or improved controls 3.3 Recommend amendments to existing controls and report need for new controls if required |
Evidence of Performance
Evidence of the ability to:
effectively liaise and communicate with stakeholders regarding risk identification
identify financial risk clusters, and analyse and prioritise the risks
document risks and controls, and make recommendations for risk control improvements.
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:
identify and explain the role of internal and external stakeholders relevant to risk
identify and explain the key features and purpose of the Australian standards for risk management
compare and contrast methods of identifying financial and legislative risks
explain the concept of risk clusters
explain the key principles and practices of risk management
explain the key principles and importance of risk controls
explain 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 relating to 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, 2.2, 3.1 | Analyses and consolidates information and data from a range of sources against defined criteria and requirements |
Writing | 1.1, 1.2, 2.1, 2.2, 3.3 | Uses clear and concise language, correct spelling and grammar and appropriate terminology to convey information appropriate to the audience and purpose |
Oral Communication | 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 3.3 | 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 |
Navigate the world of work | 1.3, 2.1, 3.1, 3.2, 3.3 | Reviews, modifies or develops organisational policy and procedures to comply with legislative requirements and organisational goals |
Interact with others | 1.1, 1.2, 1.3, 2.1, 2.2, 2.3, 3.3 | Implements strategies for a diverse range of colleagues and clients to build rapport and foster strong relationships Collaborates with others, sharing information to build strong work groups and avoid behaviours that are not conducive to a productive environment |
Get the work done | 1.1, 1.2, 2.1, 2.2, 3.1-3.3 | Accepts responsibility for planning and sequencing complex tasks and workload, negotiating key aspects with others and taking into account capabilities, efficiencies and effectiveness Makes critical decisions quickly and intuitively in complex situations, taking into consideration a range of variables including the outcomes of previous decisions Investigates new and innovative ideas as a means to continuously improve work practices and processes through consultation, and formal analytical thinking Uses formal analytical thinking techniques to identify issues and generate possible solutions, seeking input from others as required Uses digital systems and technologies to enter, store or access information |
Sectors
Risk management