Application
This unit describes the skills and knowledge required to analyse financial market operations risks and determine appropriate mitigation and treatment methods.
It applies to individuals with highly specialised knowledge who use analytical skills and systematic approaches to make judgements and provide organisational advice relating to risk.
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.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Analyse financial market operation risk profiles | 1.1 Determine types and characteristics of financial market risks relevant to organisation’s operations process 1.2 Analyse operations processes to detect risk 1.3 Assess organisation’s operations processes for exposure to identified financial market risks using existing measures and relevant risk measurement techniques and tools 1.4 Rank identified risks against likelihood and organisational impact |
2. Identify risk mitigation strategy | 2.1 Consider risk mitigation options and treatments for each risk mitigation identified in operations process 2.2 Select appropriate treatment options, and financial and non-financial costs and benefits arising from treatment options 2.3 Review treatment priorities and adequacy of existing controls, and establish need for additional or alternative controls |
3. Develop risk mitigation recommendations | 3.1 Identify and establish personnel and resources necessary to carry out actions 3.2 Develop viable recommendations to management for each stage of treating organisational risks 3.3 Determine key indicators of progress and success 3.4 Develop monitoring system for effectiveness of risk treatments |
Evidence of Performance
Evidence of the ability to:
analyse operations processes to detect risks
effectively apply risk management principles and practices
analyse risks and determine appropriate mitigation strategies
develop sound recommendations on risk mitigation.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
describe key features of financial markets products and services
outline the key financial markets risks
outline organisational operations processes and operations processing systems
compare methods of determining suitability of risk treatment options for particular applications
describe key features of relevant financial services legislative and industry code or practice requirements
compare and contrast risk analysis techniques and tools
discuss issues relating to the range of possible financial risk treatment options
describe the key types and characteristics of financial markets risk arising in the operations process.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the financial markets field of work and include access to:
office equipment, technology, software and consumables
financial services organisational data
access to international standards ISO 31000 (2009).
Assessors must satisfy NVR/AQTF assessor requirements.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1-1.3, 2.1, 2.3 | Analyses complex information from a range of sources to determine requirements and complete necessary actions |
Writing | 1.4, 3.2, 3.3, 3.4 | Prepares formal and informal documents using accurate terminology, clear language and concepts appropriate for the audience and purpose |
Oral Communication | 3.2 | Participates in verbal exchanges using active listening and questioning skills to disseminate, present and clarify information |
Numeracy | 1.3, 1.4, 2.2 | Uses mathematical equations to perform calculations relating to financial data |
Interact with others | 3.2, 3.4 | Selects and uses appropriate conventions and protocols when communicating with personnel |
Get the work done | 1.1-1.4, 2.1-2.3, 3.1-3.4 | Accepts responsibility for planning and sequencing complex tasks and workload Uses formal analytical processes to identify potential problems and lateral thinking processes to generate possible solutions Applies systematic and analytical decision-making processes to select appropriate options in complex and non-routine situations |
Sectors
Financial markets