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Evidence Guide: FNSISV505 - Determine risk rating for investment and insurance products

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

 

FNSISV505 - Determine risk rating for investment and insurance products

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

Monitor and collect information on risk factors

  1. Identify product type so that nature of risk can be identified and handled accordingly
  2. Identify, monitor and collect relevant information
Identify product type so that nature of risk can be identified and handled accordingly

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify, monitor and collect relevant information

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse data collected

  1. Establish reliability and validity of data
  2. Assess risk factors associated with product against known exposure factors
  3. Analyse all information collected on risk factors for product using appropriate methods and documentation
  4. Identify need for additional information to further evaluate risk
Establish reliability and validity of data

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess risk factors associated with product against known exposure factors

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse all information collected on risk factors for product using appropriate methods and documentation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify need for additional information to further evaluate risk

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine risk rating for product

  1. Determine acceptability of risk using all available information in accordance with organisational policy and procedures, and underwriting guidelines
  2. Establish risk rating that minimises risk liability within delegated authority
  3. Document basis for risk rating decision
  4. Consider compliance with relevant legislation and organisational policy
  5. Document risk rating information in format that may be used to guide underwriting and product or policy amendment decisions
Determine acceptability of risk using all available information in accordance with organisational policy and procedures, and underwriting guidelines

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish risk rating that minimises risk liability within delegated authority

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document basis for risk rating decision

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Consider compliance with relevant legislation and organisational policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document risk rating information in format that may be used to guide underwriting and product or policy amendment decisions

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communicate results to appropriate personnel

  1. Present results of research and analysis to appropriate personnel in a clear, concise format
  2. Review risk rating recommendations against existing products and organisational policy
  3. Finalise risk rating recommendations and notify relevant personnel
Present results of research and analysis to appropriate personnel in a clear, concise format

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review risk rating recommendations against existing products and organisational policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Finalise risk rating recommendations and notify relevant personnel

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. Monitor and collect information on risk factors

1.1 Identify product type so that nature of risk can be identified and handled accordingly

1.2 Identify, monitor and collect relevant information

2. Analyse data collected

2.1 Establish reliability and validity of data

2.2 Assess risk factors associated with product against known exposure factors

2.3 Analyse all information collected on risk factors for product using appropriate methods and documentation

2.4 Identify need for additional information to further evaluate risk

3. Determine risk rating for product

3.1 Determine acceptability of risk using all available information in accordance with organisational policy and procedures, and underwriting guidelines

3.2 Establish risk rating that minimises risk liability within delegated authority

3.3 Document basis for risk rating decision

3.4 Consider compliance with relevant legislation and organisational policy

3.5 Document risk rating information in format that may be used to guide underwriting and product or policy amendment decisions

4. Communicate results to appropriate personnel

4.1 Present results of research and analysis to appropriate personnel in a clear, concise format

4.2 Review risk rating recommendations against existing products and organisational policy

4.3 Finalise risk rating recommendations and notify relevant personnel

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. Monitor and collect information on risk factors

1.1 Identify product type so that nature of risk can be identified and handled accordingly

1.2 Identify, monitor and collect relevant information

2. Analyse data collected

2.1 Establish reliability and validity of data

2.2 Assess risk factors associated with product against known exposure factors

2.3 Analyse all information collected on risk factors for product using appropriate methods and documentation

2.4 Identify need for additional information to further evaluate risk

3. Determine risk rating for product

3.1 Determine acceptability of risk using all available information in accordance with organisational policy and procedures, and underwriting guidelines

3.2 Establish risk rating that minimises risk liability within delegated authority

3.3 Document basis for risk rating decision

3.4 Consider compliance with relevant legislation and organisational policy

3.5 Document risk rating information in format that may be used to guide underwriting and product or policy amendment decisions

4. Communicate results to appropriate personnel

4.1 Present results of research and analysis to appropriate personnel in a clear, concise format

4.2 Review risk rating recommendations against existing products and organisational policy

4.3 Finalise risk rating recommendations and notify relevant personnel

Evidence of the ability to:

collect, analyse and interpret information relevant for assessing risk

accurately determine acceptable risk rating for the organisation’s products

effectively document, communicate and monitor the risk ratings

comply with organisational policy, procedures, legislation, regulations and industry codes of practice

present research findings in a suitable format to enable assessment of liabilities.

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:

describe basic actuarial principles used to assess risk and return on investment

identify the key features of relevant legislation, regulatory guidelines and industry sector codes of practice

explain industry market position relative to product or line of business

outline organisational information technology systems required for determining risk

describe organisational policy, procedures, underwriting guidelines and authorities covering:

best underwriting guides (BUG)

loss control guides

identify and describe insurance and investment products and the risks associated with these products

define the difference between treaty and facultative reinsurance as it applies to risk

explain the relationship between underwriting and rate making

identify and apply relevant legislation, regulatory guidelines and industry sector compliance requirements as they apply to:

insurance contracts

privacy

consumer protection

financial services

corporations

describe risk analysis and prevention methods and their application

explain types of risk and identify the probability of occurrence.