Assessor Resource

FNSACC609
Evaluate financial risk

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to assess financial risk and exposure, analyse financial histories and establish processes to minimise risks associated with an organisation’s cash flow or assets and securities.

It applies to experienced individuals with specialised knowledge who use well-developed analytical skills and systematic approaches to manage and mitigate risk in 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.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

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.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

common office equipment, technology, software and consumables

an integrated financial software system and data.

Assessors must satisfy NVR/AQTF assessor requirements.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

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.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

common office equipment, technology, software and consumables

an integrated financial software system and data.

Assessors must satisfy NVR/AQTF assessor requirements.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Identify and measure magnitude and volatility of organisational risks to determine extent of risk exposure and implications for financial strategies 
Identify key factors supporting or driving risk exposure and establish timeframes to monitor and improve performance 
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 
Ensure risk management options include assessments of alternatives, criteria for success and estimates of long-term and short-term effects 
Identify and evaluate key ethical, legislative and organisational considerations for risk management options 
Develop strategies using standard financial analysis techniques to identify financial flows, trends in returns and adjustments in asset values 
Establish financial recording systems to monitor and evaluate changes in market conditions and business needs using range of data sources 
Develop risk management strategies that optimise mix of asset structures and liabilities in operations and ensure flexibility to meet changing environments 
Evaluate financial performance using trends and patterns that identify magnitude and volatility of financial exposures 
Compare long-term and short-term financial outcomes with forecast outcomes to assess variances and parameters in performance and reliability of financial advice 
Identify and analyse incidents and factors increasing or diminishing financial performance using standard financial analysis techniques 
Develop and review recording systems to monitor financial outcomes and to guide and document decision making 
Maintain and establish inventories to ensure up-to-date records on value of assets and liabilities 
Assess contribution of organisational attitudes to risk taking and incorporate in risk analysis process 
Develop, review and communicate parameters for variances in financial outcomes to support financial decision making 

Forms

Assessment Cover Sheet

FNSACC609 - Evaluate financial risk
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:


Assessment Record Sheet

FNSACC609 - Evaluate financial risk

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: