Assessor Resource

FNSFMK507A
Analyse risk mitigation in the operations process

Assessment tool

Version 1.0
Issue Date: May 2024


This unit apply to financial markets job roles including managers, specialists and personnel with risk management responsibilities.

This unit describes the performance outcomes, skills and knowledge required to analyse financial markets operations risks and determine appropriate mitigation and treatment methods.

This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.

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

Employability Skills

This unit contains employability skills.



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.

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:

effectively apply risk management principles and practices

analyse risks and determine appropriate mitigation strategies

develop sound recommendations on risk mitigation.

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 financial services organisational data

access to Australian Standard 4360 Risk Management.

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 scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

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.

Required skills

well-developed communication skills to:

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

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

well-developed research and analysis for accessing, interpreting and managing complex information

highly developed risk assessment and management skills

well-developed literacy skills for:

analysingrisk mitigation information to ensure appropriateness to the organisation

drafting risk mitigation reports

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

planning and organisational skills

Required knowledge

Australian Standard 4360 Risk Management

financial markets products and services

methods of comparing suitability of risk treatment options for particular applications

relevant financial services legislative and industry code or practice requirements

risk analysis techniques and tools

the range of possible financial risk treatment options

types and characteristics of financial markets risk

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.

Financial markets risks may include:

compliance risk

client credit risk

fraudulent activity risk

legal risk

liquidity risk

market risk

operational or security risk

reputation risk

settlement agency or bank risk

systemic risk

technology inadequacy or failure risk.

Existing measuresand relevant risk measurement techniques and tools may include:

audits and internal surveys

credit analysis

documentation and data security

default procedures

legal obligations review

personnel checking procedures

risk rating and updating processes

settlement procedures

technology review

transaction entry and capture processes.

Risk mitigation options are specific tools including:

diagnostic tools used to identify and measure risks

monitoring tools used to monitor risks

preventative tools used to mitigate risks

remedial tools used to address crystallised risks.

Treatments are specific solutions within risk mitigation options and may include:

administrative or policy change

education and training or personnel

hedging

improved security

insurance of risk

involvement of external agencies

reduction of risk by greater control.

Costs and benefits may include:

financial benefits and costs

non-financial benefits and costs.

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
Types and characteristics of financial markets risks are determined 
The organisation's exposure to identified financial markets risks is assessed using existing measures and relevant risk measurement techniques and tools 
Identified risks are ranked against likelihood and organisational impact 
Risk mitigation options for each risk and treatments for risk mitigation are considered 
Implementation time for each treatment and the costs and benefits arising from the treatment options are quantified and appropriate treatments selected 
Treatment priorities and the adequacy of existing controls are reviewed and the need for additional or alternative controls established 
Personnel and resources necessary to carry out actions undertaken are formulated 
Viable recommendations are provided to management for each stage of treating organisational risks 
Key indicators of progress and success are determined 
A monitoring system for the effectiveness of risk treatments is developed 

Forms

Assessment Cover Sheet

FNSFMK507A - Analyse risk mitigation in the operations process
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

FNSFMK507A - Analyse risk mitigation in the operations process

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: