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Evidence Guide: FNSACC609 - Evaluate financial risk

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSACC609 - Evaluate financial risk

What evidence can you provide to prove your understanding of each of the following citeria?

Assess financial risk exposure

  1. Identify and measure magnitude and volatility of organisational risks to determine extent of risk exposure and implications for financial strategies
  2. Identify key factors supporting or driving risk exposure and establish timeframes to monitor and improve performance
  3. Compare short-term and long-term financial outcomes and projections with actual cash flows using standard financial analysis techniques to determine effects on liquidity and budget adjustments
Identify and measure magnitude and volatility of organisational risks to determine extent of risk exposure and implications for financial strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify key factors supporting or driving risk exposure and establish timeframes to monitor and improve performance

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare short-term and long-term financial outcomes and projections with actual cash flows using standard financial analysis techniques to determine effects on liquidity and budget adjustments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop risk management processes

  1. Ensure risk management options include assessments of alternatives, criteria for success and estimates of long-term and short-term effects
  2. Identify and evaluate key ethical, legislative and organisational considerations for risk management options
  3. Develop strategies using standard financial analysis techniques to identify financial flows, trends in returns and adjustments in asset values
  4. Establish financial recording systems to monitor and evaluate changes in market conditions and business needs using range of data sources
  5. Develop risk management strategies that optimise mix of asset structures and liabilities in operations and ensure flexibility to meet changing environments
Ensure risk management options include assessments of alternatives, criteria for success and estimates of long-term and short-term effects

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and evaluate key ethical, legislative and organisational considerations for risk management options

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop strategies using standard financial analysis techniques to identify financial flows, trends in returns and adjustments in asset values

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish financial recording systems to monitor and evaluate changes in market conditions and business needs using range of data sources

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop risk management strategies that optimise mix of asset structures and liabilities in operations and ensure flexibility to meet changing environments

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse financial histories

  1. Evaluate financial performance using trends and patterns that identify magnitude and volatility of financial exposures
  2. Compare long-term and short-term financial outcomes with forecast outcomes to assess variances and parameters in performance and reliability of financial advice
  3. Identify and analyse incidents and factors increasing or diminishing financial performance using standard financial analysis techniques
Evaluate financial performance using trends and patterns that identify magnitude and volatility of financial exposures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Compare long-term and short-term financial outcomes with forecast outcomes to assess variances and parameters in performance and reliability of financial advice

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and analyse incidents and factors increasing or diminishing financial performance using standard financial analysis techniques

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish processes to minimise risks

  1. Develop and review recording systems to monitor financial outcomes and to guide and document decision making
  2. Maintain and establish inventories to ensure up-to-date records on value of assets and liabilities
  3. Assess contribution of organisational attitudes to risk taking and incorporate in risk analysis process
  4. Develop, review and communicate parameters for variances in financial outcomes to support financial decision making
Develop and review recording systems to monitor financial outcomes and to guide and document decision making

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain and establish inventories to ensure up-to-date records on value of assets and liabilities

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess contribution of organisational attitudes to risk taking and incorporate in risk analysis process

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop, review and communicate parameters for variances in financial outcomes to support financial decision making

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Assess financial risk exposure

1.1 Identify and measure magnitude and volatility of organisational risks to determine extent of risk exposure and implications for financial strategies

1.2 Identify key factors supporting or driving risk exposure and establish timeframes to monitor and improve performance

1.3 Compare short-term and long-term financial outcomes and projections with actual cash flows using standard financial analysis techniques to determine effects on liquidity and budget adjustments

2. Develop risk management processes

2.1 Ensure risk management options include assessments of alternatives, criteria for success and estimates of long-term and short-term effects

2.2 Identify and evaluate key ethical, legislative and organisational considerations for risk management options

2.3 Develop strategies using standard financial analysis techniques to identify financial flows, trends in returns and adjustments in asset values

2.4 Establish financial recording systems to monitor and evaluate changes in market conditions and business needs using range of data sources

2.5 Develop risk management strategies that optimise mix of asset structures and liabilities in operations and ensure flexibility to meet changing environments

3. Analyse financial histories

3.1 Evaluate financial performance using trends and patterns that identify magnitude and volatility of financial exposures

3.2 Compare long-term and short-term financial outcomes with forecast outcomes to assess variances and parameters in performance and reliability of financial advice

3.3 Identify and analyse incidents and factors increasing or diminishing financial performance using standard financial analysis techniques

4. Establish processes to minimise risks

4.1 Develop and review recording systems to monitor financial outcomes and to guide and document decision making

4.2 Maintain and establish inventories to ensure up-to-date records on value of assets and liabilities

4.3 Assess contribution of organisational attitudes to risk taking and incorporate in risk analysis process

4.4 Develop, review and communicate parameters for variances in financial outcomes to support financial decision making

Required Skills and Knowledge

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Assess financial risk exposure

1.1 Identify and measure magnitude and volatility of organisational risks to determine extent of risk exposure and implications for financial strategies

1.2 Identify key factors supporting or driving risk exposure and establish timeframes to monitor and improve performance

1.3 Compare short-term and long-term financial outcomes and projections with actual cash flows using standard financial analysis techniques to determine effects on liquidity and budget adjustments

2. Develop risk management processes

2.1 Ensure risk management options include assessments of alternatives, criteria for success and estimates of long-term and short-term effects

2.2 Identify and evaluate key ethical, legislative and organisational considerations for risk management options

2.3 Develop strategies using standard financial analysis techniques to identify financial flows, trends in returns and adjustments in asset values

2.4 Establish financial recording systems to monitor and evaluate changes in market conditions and business needs using range of data sources

2.5 Develop risk management strategies that optimise mix of asset structures and liabilities in operations and ensure flexibility to meet changing environments

3. Analyse financial histories

3.1 Evaluate financial performance using trends and patterns that identify magnitude and volatility of financial exposures

3.2 Compare long-term and short-term financial outcomes with forecast outcomes to assess variances and parameters in performance and reliability of financial advice

3.3 Identify and analyse incidents and factors increasing or diminishing financial performance using standard financial analysis techniques

4. Establish processes to minimise risks

4.1 Develop and review recording systems to monitor financial outcomes and to guide and document decision making

4.2 Maintain and establish inventories to ensure up-to-date records on value of assets and liabilities

4.3 Assess contribution of organisational attitudes to risk taking and incorporate in risk analysis process

4.4 Develop, review and communicate parameters for variances in financial outcomes to support financial decision making

Evidence of the ability to:

apply standard financial analysis techniques and knowledge of an organisation’s attitude to risk to identify and assess financial risk

develop risk management processes that comply with relevant ethical, legislative and organisational requirements

establish processes to minimise risks based on analysis of financial histories.

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

identify and discuss the key ethical considerations for compliance

explain the key features of financial legislation relevant to financial risk and compliance

compare and contrast methods of storing, recording and updating financial information and data

explain the key principles of:

internal control, including statutory reporting

risk management and budgetary control

explain organisational structures and lines of management authority.