Application
This unit describes the skills and knowledge required to examine the likelihood of financial risks and their consequences, and assess the organisation’s exposure to those risks.
It applies to individuals who provide specialised knowledge, and who use systematic approaches to problem solving and make recommendations within organisational processes and procedures.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
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. Develop risk evaluation criteria | 1.1 Identify risks in organisational processes and procedures following the Australian Risk Management Standards 1.2 Develop risk evaluation criteria, including tolerance levels |
2. Assess current exposure | 2.1 Identify and apply appropriate risk assessment tools and establish probability of risk 2.2 Identify potential severity and/or impact or consequence of risk 2.3 Identify mitigating effect of existing controls and assess exposure to risk using evaluation criteria |
3. Compare exposure with guidelines | 3.1 Identify relevant guidelines and compare risk exposure levels with organisational guidelines 3.2 Compare exposure levels with industry and statutory obligations, and identify and report unacceptable residual risks |
4. Prepare probability assessment | 4.1 Analyse specific issues using measurement criteria 4.2 Prepare risk map that ranks and summarises threats and risk issues in consistent manner |
5. Communicate with relevant internal and external stakeholders | 5.1 Identify stakeholders and seek out their views 5.2 Provide information to stakeholders at each stage of assessing organisation’s exposure to risks |
Evidence of Performance
Evidence of the ability to:
effectively liaise and communicate with stakeholders
develop risk evaluation criteria and conduct effective analysis of financial and legislative risk situations
prepare a risk map prioritising risk, based on risk analysis
develop recommendations to mitigate risk.
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:
identify and explain the key features and purpose of Australian standards for risk management
analyse and discuss risk management principles and practices, and key terminology
outline the key organisational policy, procedures and operational guidelines relating to risk assessment
research risk exposure levels in the financial services industry
identify residual risk levels and check risk appetite levels for the industry
evaluate risk consequences for the organisation
identify and explain the role of internal and external stakeholders relevant to risk.
Assessment Conditions
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the risk management field of work and include access to:
office equipment, technology, software and consumables
relevant legislation, regulations and codes of practice
relevant Australian standards relating to risk management.
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, 3.1, 4.1 | Critically analyses complex documentation from a variety of sources and consolidates information relating to specific criteria to determine requirements |
Writing | 1.2, 3.2, 4.2, 5.1, 5.2 | Uses a range of formats and structures to report and present information logically Develops material for a specific audience using clear and detailed language to convey accurate information and recommendations |
Oral Communication | 3.2, 5.1, 5.2 | Participates in verbal exchanges using active listening and questioning techniques to convey information and elicit the views and opinions of internal and external personnel Clearly explains detailed information using concepts, language, tone and pace appropriate to the audience |
Numeracy | 1.2, 2.1, 2.3, 3.2, 4.1, 4.2, 5.2 | Performs mathematical calculations to analyse financial data and statistics, and to interpret trends |
Navigate the world of work | 1.1, 3.1, 3.2 | Identifies and resolves key business issues, processes and practices that may have legal or organisational implications Modifies or develops organisational policy and procedures to comply with legislative requirements and organisational goals |
Interact with others | 5.1, 5.2 | Implements strategies for a diverse range of colleagues and clients to build rapport and foster strong relationships |
Get the work done | 1.2, 2.1-2.3, 3.1, 3.2, 4.1, 4.2, 5.1, 5.2 | Accepts responsibility for planning and sequencing complex tasks and workload, negotiating key aspects with others and taking into account capabilities, efficiencies and effectiveness Applies systematic and analytical decision-making processes for complex and non-routine situations Uses formal analytical thinking techniques to identify or predict issues and generate possible solutions Investigates new and innovative ideas as a means to continuously improve work practices and processes through consultation, and formal analytical thinking Uses digital systems and technologies to enter, store or access information |
Sectors
Risk management