Elements and Performance Criteria

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.


quality of strategy

nature of business

credit risk

insurance underwriting risk

market risk

operational risk

litigation/legal risk

adequacy of capital

liquidity

earnings

type of customer and/or user/member

sources of business and distribution mechanisms

types of products/services

market efficiency

proper markets


treatment of customers/users

clarity of legal/ownership structure

jurisdictions/characteristics of controllers/group entities

relationship with the rest of the group

risk management

policies, procedures and controls

management information

information technology (IT) systems

financial and regulatory reporting and accounting policies

compliance

internal audit

outsourcing/third party providers

professional advisors

business continuity

corporate governance

allocation and definition of management responsibilities

human resources

cultural issues and business ethics


marketing and sales personnel

managers or supervisors

underwriters

product developers

medical practitioners

financiers

lawyers/solicitors

reinsurers

actuaries

intermediaries

clients

brokers


uncertainty of a financial loss

a term used to designate an insured or peril insured against


value and type of product/portfolio

potential impact on the organisation


criteria against which a risk may be measured for acceptability


a procedure to minimise the adverse effects of a possible financial loss by identifying potential sources of loss

measuring the financial consequences and likelihood of a loss occurring

using controls to minimize actual losses or their financial consequences


legislation

regulations

company operating procedures

codes of practice, where applicable

The insurance industry should adopt a range of improved consumer protection policies and practices with respect to its use of genetic information (including family history) for underwriting purposes. New laws and practices should ensure that: genetic information is only used in a scientifically reliable and actuarially sound manner; reasons are provided for any unfavourable underwriting decision; industry complaints handling processes are strengthened and extended to cover underwriting decisions; and industry education and training about genetics are improved.

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

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

application of organisation policy and procedures and compliance with legislation and regulations and industry codes of practice in effectively analysing, determining and managing risk assessment strategies
sound application of knowledge and skills in the area of risk assessment and management would be expected
highly developed analytical skills

Evidence required for demonstration of consistent performance:
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.

Delivery/assessment relationship to other units:
This unit may be assessed on its own or it may be assessed with other units that cover related skills and knowledge.
Evidence is most relevant when provided through an integrated activity which combines the elements of competency for the unit, or a cluster of units of competency.

Method of assessment:
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 to ensure knowledge principles are both known and applied. Other methods such as case study and analysis, workplace records/documentation review, may be used as required.

Context of assessment:
Assessment of performance requirements in this unit should be undertaken within the financial services industry context and should cover aspects of role responsibility and accountability.
Aspects of competency, including the attainment of relevant knowledge and skills, may be assessed in a relevant workplace, a closely simulated work environment, or other appropriate means that clearly meet industry competency requirements.

Resources required for assessment:
Unless otherwise specified, there are no significant resource implications for assessment of this unit, apart from access to a relevant workplace or closely simulated office environment and the use of a range of office equipment, technology and consumables. These may include routine commercial computer hardware, software, telephones, facsimiles, and other relevant office equipment found in a financial services workplace.