Application
This unit describes the skills and knowledge required to apply knowledge of different financial risk treatment methods to develop and then implement a plan or strategy for treatment of an organisation’s risks.
It applies to individuals with specialised knowledge who use analytical skills and systematic approaches to manage and implement organisational strategies that mitigate risk within their area of responsibility.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
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. Select risk mitigation for each risk | 1.1 Identify risk mitigation options for each risk in line with Australian risk management standards and treatments for risk mitigation 1.2 Quantify implementation time for each treatment, and costs and benefits arising from treatment options, before appropriate treatments are selected |
2. Develop risk mitigation plan | 2.1 Review treatment priorities and adequacy of existing controls, and establish need for additional or alternative controls 2.2 Identify, document and allocate required actions 2.3 Establish budget, timeframes and reporting schedules |
3. Develop implementation plan | 3.1 Identify tasks to be undertaken and organise personnel and resources to carry out actions 3.2 Determine indicators of progress and success 3.3 Establish monitoring system to determine effectiveness of treatments |
4. Communicate with relevant internal and external stakeholders | 4.1 Identify stakeholders and seek out their views 4.2 Provide information to stakeholders at each stage of treating organisation’s risks |
Evidence of Performance
Evidence of the ability to:
analyse financial risks, perform associated cost analysis and select appropriate risk management practices
develop a risk mitigation plan
develop and monitor budgets and implementation schedules for risk mitigation strategies.
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 risk management principles, practices and management tools
identify and explain the key features and purpose of the Australian standards as they relate to risk management
analyse and discuss the range of possible treatment options for financial and legislative risk
analyse areas of applicability of treatment options in an organisation
describe methods of comparing suitability of risk treatment options for particular applications
describe the key indicators for monitoring the success of selected risk mitigation strategies
identify and explain the role of internal and external stakeholders relevant to risk.
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, 2.1, 2.2 | Critically analyses documentation from a variety of sources and records and consolidates information to determine requirements |
Writing | 2.2, 2.3, 3.3, 4.1, 4.2 | Uses a range of formats and structures to report and present information logically Develops material for a specific audience using clear and detailed language to convey accurate information and recommendations |
Oral Communication | 4.1, 4.2 | 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 |
Numeracy | 1.2, 2.3 | Performs mathematical calculations to interpret and estimate complex financial information Uses numerical data in the development of plans, budgets and reports |
Interact with others | 3.1, 4.1, 4.2 | Uses a variety of relevant communication tools and strategies in building and maintaining effective working relationships Shares knowledge, information and experience openly as an integral part of the working relationship |
Get the work done | 1.1, 1.2, 2.1-2.3, 3.1-3.3, 4.1, 4.2 | Plans strategic priorities and outcomes within a flexible, efficient and effective context in a diverse environment exposed to competing demands Gathers, monitors and analyses data and seeks feedback to improve processes Uses formal analytical thinking techniques to identify or predict issues and generate possible solutions Explores and incubates new and innovative ideas through analysis and critical thinking Uses digital systems and technologies to enter, store or access information |
Sectors
Risk management