Unit of competency Outline

Date retreived
22/07/2026 6:00 PM AWST

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Assess risks

Assess risks

Unit of competency
National Code
FNSRSK502A
State Code
D4312
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
24/11/2010
View on TGA
State Implementation and Classification
Approved Date
31/07/2014
Field of Education
080399 - Business And Management, N.e.c.
Original Release Date
31/07/2014
Nominal Hours
40
Description
This unit describes the performance outcomes, skills and knowledge required to examine the likelihood of financial risks and their consequences and assess the organisation's exposure to those risks.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Notes
Elements and Performance Criteria
1. Develop risk evaluation criteria
  • 1.1. Risks are identified in organisation processes and procedures
  • 1.2. Risk evaluation criteria, including tolerance levels, are developed
2. Assess current exposure
  • 2.1. Appropriate risk assessment tools are identified and applied and probability of risk established
  • 2.2. Potential severity and/or impact of each consequence of risk is identified
  • 2.3. Mitigating effect of existing controls is identified and exposure to risk assessed using evaluation criteria
3. Compare exposure with guidelines
  • 3.1. Relevant guidelines are identified and risk exposure levels compared with organisational guidelines
  • 3.2. Exposure levels are compared with industry and statutory obligations with unacceptable residual risks identified and reported
4. Prepare a probability assessment
  • 4.1. Specific issues are analysed using measurement criteria
  • 4.2. A risk map is prepared that ranks and summarises threats and risk issues in a consistent manner
5. Communicate with relevant internal and external stakeholders
  • 5.1. Stakeholders are identified and their views sought
  • 5.2. Information is provided to stakeholders at each stage of assessing the organisation's exposure to risks
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.
Criteria may be defined in:
financial terms
non-financial terms which may impact on:
reputation
personal suffering
environmental degradation
loss of reputation or image.
Probability refers to:
the likelihood of the particular event or issue crystallising.
Impact refers to:
the scale of the effect on statutory objectives if the issue or event crystallises.
Consequences refer to:
areas of impact might include:
people
environment
business cessation
the impact of occurrence.
Mitigation refers to:
any of a range of activities which will reduce the likelihood or consequences of the risk and may include:
application of the hierarchy of control for physical hazards
hedging for currency exchange risks
insurance for business risks.
Controls are:
measures which limit the impact of risks.
Exposure to risk assessed is based on:
consequences
likelihood
mitigating effects.
Ranking of risk is according to:
exposure level
likelihood of occurrence
consequences
severity
management priorities and policies.
Stakeholders are:
internal to the organisation who have an interest in the function under consideration, including:
those providing services
policy makers
those receiving services from this organisation
external to the organisation who have an interest the organisation under being assessed, including:
suppliers
customers
regulators
shareholders.
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:
apply risk management principles and practices
effectively analyse financial risk situations
evaluate risk consequences and develop recommendations for 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 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 business simulations or scenarios
accessing and validating third party reports.

Guidance information for assessment
Replaced By
State Code National Code Title Type
AUS85 FNSRSK502 Assess risks Unit of competency