This unit covers identifying the risks faced by an organisation, or a subsection of it, and assessing the adequacy of existing controls which mitigate the impact of those risks.

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary for the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.

This unit requires the application of risk management skills to the process of identifying risks. Risks are described and existing risk controls are evaluated and improvements recommended where appropriate. It is applicable to general and specialist managers. It may be applied in any sector of the financial services industry.

This unit replaces FNSRISK501A.

1.1 Stakeholders are identified

Risk Assessment Assignment Tasks 1-4

1.2 Information pertinent to the risk identification is provided to stakeholders

Risk Assessment Assignment Tasks 5-7

1.3 Views of stakeholders are sought

Risk Assessment Assignment Tasks 3-4

2.1 Organisation environment is defined

Risk Assessment Assignment Tasks 1-2

2.2 Boundaries of review are defined in consultation with stakeholders

Risk Assessment Assignment Tasks 5-7

2.3 Risk cluster elements are identified

Risk Assessment Assignment Tasks 5-7

2.4 Risks are described clearly to stakeholders

Risk Assessment Assignment Tasks 15

3.1 Existing controls are identified

Risk Assessment Assignment Tasks 8-12

3.2 Effectiveness of existing controls is evaluated

Risk Assessment Assignment Tasks 13

3.3 The need for additional/improved controls is established

Risk Assessment Assignment Tasks 14

3.4 Amendments to existing controls are recommended

Risk Assessment Assignment Tasks 15

3.5 The need for new controls is reported

Risk Assessment Assignment Tasks 16

ability to analyse and evaluate information

Risk Assessment Assignment Tasks 13

ability to consult with a diversity of people

Risk Assessment Assignment Tasks 3-4

Australian Standard 4360 Risk Management

principles of risk management

Risk Assessment Assignment Tasks 8-13

methods of identifying risks

Risk Assessment Assignment Tasks 5-7

understanding of the nature and scope of business

Risk Assessment Assignment Tasks 1

Boundaries

         business unit

         team project

         organisation

Risk cluster

         financial risks

         physical risks

         legal risks (eg compliance risks)

         business risks

Internal stakeholders

those within the organisation who have an interest in the function under consideration, including:

         those providing services

         policy makers

         those receiving services from this organisational unit

External stakeholders

those outside the organisation who have an interest the organisation being assessed, including:

         suppliers

         customers

         regulators

         shareholders

Description of risk

         their nature

         their area of impact

         how they can occur and impact on the achievement of business objectives

Controls

         measures which limit the impact of risks

Area

Training Package Specification

Gryphon Learning Implementation

To achieve competency in this unit, a person must be able to demonstrate:

         the application of risk management principles and practices

         ability to identify risk clusters

         high level communication skills

         analytical skills

See above mapping of assessment items to performance criteria

Competence in this unit must be assessed over a period of time in order to ensure consistency of performance over the Range Statement and contexts applicable to the work environment.

Assessment involves an assignment relating to an existing organisation - preferably the one in which the student is working

This unit may be assessed on its own or it may be assessed with other units in suite of risk management units.

Evidence is most relevant when provided through an integrated activity that combines the elements of competency for the unit, or a cluster of units of competency.

This unit will usually be assessed alone, but may be assessed together with FNSICGEN304B Apply health and safety practices in the workplace -

For valid and reliable assessment of this unit, evidence should be gathered through a range of methods to indicate consistent performance.

Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on underpinning knowledge and skills and other methods as required.

Assessment involves a written assignment relating to an existing financial services organisation - preferably the one in which the student is working

Assessment of performance requirements in this unit should be undertaken within the financial services industry context.

Aspects of competency, including attainment of relevant knowledge and skills may be assessed in a simulated work environment or other appropriate means.

Assessment involves a written assignment relating to an existing financial services organisation - preferably the one in which the student is working

Assessment of this unit of competence requires access to Australian Standard 4360 Risk Management