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Evidence Guide: FNSFMK507A - Analyse risk mitigation in the operations process

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

 

FNSFMK507A - Analyse risk mitigation in the operations process

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

Analyse financial market operation risk profiles

  1. Types and characteristics of financial markets risks are determined
  2. The organisation's exposure to identified financial markets risks is assessed using existing measures and relevant risk measurement techniques and tools
  3. Identified risks are ranked against likelihood and organisational impact
Types and characteristics of financial markets risks are determined

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

The organisation's exposure to identified financial markets risks is assessed using existing measures and relevant risk measurement techniques and tools

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identified risks are ranked against likelihood and organisational impact

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify a risk mitigation strategy for risks

  1. Risk mitigation options for each risk and treatments for risk mitigation are considered
  2. Implementation time for each treatment and the costs and benefits arising from the treatment options are quantified and appropriate treatments selected
  3. Treatment priorities and the adequacy of existing controls are reviewed and the need for additional or alternative controls established
Risk mitigation options for each risk and treatments for risk mitigation are considered

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implementation time for each treatment and the costs and benefits arising from the treatment options are quantified and appropriate treatments selected

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Treatment priorities and the adequacy of existing controls are reviewed and the need for additional or alternative controls established

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop risk mitigation recommendations

  1. Personnel and resources necessary to carry out actions undertaken are formulated
  2. Viable recommendations are provided to management for each stage of treating organisational risks
  3. Key indicators of progress and success are determined
  4. A monitoring system for the effectiveness of risk treatments is developed
Personnel and resources necessary to carry out actions undertaken are formulated

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Viable recommendations are provided to management for each stage of treating organisational risks

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Key indicators of progress and success are determined

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

A monitoring system for the effectiveness of risk treatments is developed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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

Range Statement

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.