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Evidence Guide: FNSRSK602A - Determine and manage risk exposure strategies

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

 

FNSRSK602A - Determine and manage risk exposure strategies

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

Determine appropriate risk assessment strategies

  1. Appropriate criteria for acceptance or rejection of risks are identified and evaluated
  2. Performance targets for the organisation's capacity to assess and accept risk are determined
  3. Organisation's business risk elements and control risk elements are identified
Appropriate criteria for acceptance or rejection of risks are identified and evaluated

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Performance targets for the organisation's capacity to assess and accept risk are determined

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Organisation's business risk elements and control risk elements are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate risk and compliance factors

  1. Accurate, reliable and up-to-date information on these elements is identified and collated in a form suitable for analysis with relevant data accessed and comprehensively investigated and reviewed
  2. Risk elements are evaluated against known exposure factors and compliance with relevant legislation and organisation policy is considered
  3. Risk acceptability factors are evaluated within the context of organisation's mitigating capabilities
  4. Risk acceptability factors are evaluated within the context of organisation requirements
Accurate, reliable and up-to-date information on these elements is identified and collated in a form suitable for analysis with relevant data accessed and comprehensively investigated and reviewed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk elements are evaluated against known exposure factors and compliance with relevant legislation and organisation policy is considered

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk acceptability factors are evaluated within the context of organisation's mitigating capabilities

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk acceptability factors are evaluated within the context of organisation requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish risk acceptance criteria

  1. Terms and conditions of risk acceptance criteria for low hazard risk areas are established that meet market conditions and are within organisation accepted levels of exposure
  2. Terms and conditions of risk acceptance for high hazard risk areas are established that meet market conditions and are within organisation accepted levels of exposure
  3. Risk acceptance strategies, criteria and guidelines are clearly documented, and meet the requirements of relevant guidelines and are determined within delegated authorities
  4. Relevant feedback is obtained and reviewed and the risk acceptance criteria, and associated authority limitations, conditions and guidelines finalised
Terms and conditions of risk acceptance criteria for low hazard risk areas are established that meet market conditions and are within organisation accepted levels of exposure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Terms and conditions of risk acceptance for high hazard risk areas are established that meet market conditions and are within organisation accepted levels of exposure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk acceptance strategies, criteria and guidelines are clearly documented, and meet the requirements of relevant guidelines and are determined within delegated authorities

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Relevant feedback is obtained and reviewed and the risk acceptance criteria, and associated authority limitations, conditions and guidelines finalised

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop risk management strategies

  1. Risk management for each risk is selected and an implementation plan developed
  2. Procedures that staff should follow in operationalising strategy are identified and developed
Risk management for each risk is selected and an implementation plan developed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Procedures that staff should follow in operationalising strategy are identified and developed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement risk assessment strategies

  1. Risk assessment strategies, criteria and guidelines are communicated to relevant staff and intermediaries
  2. Risk acceptance strategy implementation is monitored
Risk assessment strategies, criteria and guidelines are communicated to relevant staff and intermediaries

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk acceptance strategy implementation is monitored

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate and review risk assessment strategies

  1. Risk assessment strategies are evaluated to determine effectiveness in achieving risk management objectives and reviewed as required
  2. Results are documented and communicated to relevant staff
Risk assessment strategies are evaluated to determine effectiveness in achieving risk management objectives and reviewed as required

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Results are documented and communicated to relevant staff

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

interpret and apply organisation policy and procedures and comply with legislation, regulations and industry codes of practice

effectively analyse, determine and manage financial risk exposure strategies.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to organisation and industry risk management documentation and information.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

Required Skills and Knowledge

Required skills

highly developed communication skills to:

determine and confirm organisation risk strategy requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

highly developed research and analysis for accessing, interpreting and managing complex information

well-developed risk assessment and management skills

numeracy and IT skills for:

identifying and using statistical information

accessing and using appropriate software such as word processors, spreadsheets and databases and internet information

well-developed literacy skills for analysingrisk information and financial products to ensure appropriateness to the organisation

well-developed problem solving skills to identify any issues that have the potential to impact on risk strategies and compliance and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work

Required knowledge

Australian Standard 4360 Risk Management

actuarial and financial principles and processes

industry sector compliance requirements such as the General Insurance Code of practice

organisation products and services

identification of liability loss exposures

organisation policy, procedures guidelines and authorities

relevant industry hazards and risk exposures

relevant legislation, regulatory guidelines and industry sector compliance requirements, such as:

Insurance Contracts Act

Privacy Act

Trade Practices

Corporations Act

risk assessment and prevention methods and application

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Business risk elements may include:

adequacy of capital

credit risk

earnings

insurance underwriting risk

liquidity

litigation and other legal risk

market efficiency

market risk

nature of business

operational risk

proper markets

quality of strategy

sources of business and distribution mechanisms

type of customer, user or member

types of products and services.

Control risk elements may include:

allocation and definition of management responsibilities

business continuity

clarity of legal ownership structure

compliance

corporate governance

cultural issues and business ethics

financial and regulatory reporting and accounting policies

human resources

IT systems

internal audit

jurisdictions and characteristics of controllers or group entities

management information

outsourcing to third party providers

policies, procedures and controls

professional advisers

relationship with the rest of the group

risk management

treatment of customers or users.

Sources of information may include:

actuaries

brokers

clients

financiers

intermediaries

lawyers and solicitors

managers or supervisors

marketing and sales personnel

medical practitioners

product developers

reinsurers

underwriters.

Risk is:

a term used to designate a peril against an insured or against uncertainty of a financial loss.

Risk acceptability factors vary according to:

potential impact on the organisation

value and type of product or portfolio.

Risk acceptance criteria refers to:

criteria against which a risk may be measured for acceptability.

Risk management is:

a procedure to minimise the adverse effects of a possible financial loss by identifying potential sources of loss

measuring the financial consequences and likelihood of a loss occurring

using controls to minimise actual losses or their financial consequences.