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Evidence Guide: FNSRSK612 - 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

 

FNSRSK612 - Determine and manage risk exposure strategies

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

Determine risk assessment strategies

  1. Identify and evaluate criteria for acceptance or rejection of risks using standards for risk management as indicated by regulators
  2. Determine organisational performance targets and capacity to assess and accept risk
Identify and evaluate criteria for acceptance or rejection of risks using standards for risk management as indicated by regulators

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine organisational performance targets and capacity to assess and accept risk

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review risk and compliance factors

  1. Investigate and review the data and information
  2. Evaluate risk acceptability factors within context of organisation’s mitigating capabilities and organisational requirements
  3. Critically analyse risk considerations in the business strategic planning process in line with appetite
Investigate and review the data and information

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate risk acceptability factors within context of organisation’s mitigating capabilities and organisational requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Critically analyse risk considerations in the business strategic planning process in line with appetite

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop risk acceptance criteria

  1. Establish terms and conditions of risk acceptance criteria to satisfactorily cover organisational needs and risks
  2. Document risk acceptance strategies, criteria and guidelines that meet requirements within delegated authorities
  3. Obtain and review feedback on risk acceptance strategies, criteria and guidelines
  4. Finalise risk acceptance criteria, and associated authority limitations, conditions and guidelines
Establish terms and conditions of risk acceptance criteria to satisfactorily cover organisational needs and risks

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document risk acceptance strategies, criteria and guidelines that meet requirements within delegated authorities

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Obtain and review feedback on risk acceptance strategies, criteria and guidelines

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Finalise risk acceptance criteria, and associated authority limitations, conditions and guidelines

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess operational capital management risk

  1. Develop fit for purpose capital models that meet regulatory requirements and organisational policies and procedures
  2. Review risk profile and calculate potential operational risk exposure
  3. Monitor internal and external losses and re-assess inherent risk and capital requirements
  4. Undertake internal and external reporting to market and regulatory bodies
Develop fit for purpose capital models that meet regulatory requirements and organisational policies and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review risk profile and calculate potential operational risk exposure

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor internal and external losses and re-assess inherent risk and capital requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Undertake internal and external reporting to market and regulatory bodies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess impact and implement risk acceptance strategies

  1. Identify and develop procedures and guidelines that staff should follow to adhere to risk acceptance strategy
  2. Communicate risk assessment strategies, criteria, procedures and guidelines to relevant staff and intermediaries
  3. Monitor risk acceptance strategy implementation
Identify and develop procedures and guidelines that staff should follow to adhere to risk acceptance strategy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communicate risk assessment strategies, criteria, procedures and guidelines to relevant staff and intermediaries

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor risk acceptance strategy implementation

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review risk assessment strategies

  1. Determine effectiveness of risk acceptance strategies in meeting risk management objectives
  2. Document and communicate results to relevant staff
Determine effectiveness of risk acceptance strategies in meeting risk management objectives

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document and communicate results to relevant staff

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Required Skills and Knowledge

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

determine and manage risk exposure strategies for at least two different types of financial products.

In the course of the above, the candidate must:

establish processes to communicate and manage implementation

establish processes to monitor, review and assess the effectiveness of the risk exposure strategy

consult and communicate with appropriate stakeholders.

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

key features and purpose of standards for risk management as indicated by regulators

the key features of actuarial and financial principles and processes related to risk exposure strategies

industry hazards and risk exposures

methods of risk assessment, prevention, and application

key features of establishing risk acceptance criteria for low and high hazard risk areas, including meeting market conditions, and accepted levels of exposure within organisations

key organisational products and services, and associated risks and liability loss exposures

different forms that strategy process implementation may take in an organisation

internal and external operational risks

operational capital management

types of inherent risks

key features of industry sector legislation, organisational and regulatory guidelines, and compliance requirements required to produce the performance evidence

organisational policy, procedures, guidelines and authorities related to risk management.