Unit of competency Outline
Date retreived
22/07/2026 7:57 PM AWST
22/07/2026 7:57 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Determine risk rating for investment and insurance products
Determine risk rating for investment and insurance products
Unit of competency
National Code
FNSISV505A
FNSISV505A
State Code
D4243
D4243
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
081103 - Insurance And Actuarial Studies
Original Release Date
29/07/2014
Nominal Hours
50
Description
This unit describes the performance outcomes, skills and knowledge required to monitor and analyse risks and determine the risk rating associated with an existing or new investment or insurance product.This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).
Notes
Elements and Performance Criteria
1. Monitor and collect information on risk factors
- 1.1. Product type is identified so that the nature of the risk can be identified and handled accordingly
- 1.2. Relevant information is identified, monitored and collected
2. Analyse data collected
- 2.1. The reliability and validity of the data is established
- 2.2. Risk factors associated with a product are assessed against known exposure factors
- 2.3. All information collected on risk factors for a product is analysed using appropriate methods and documented
- 2.4. Need for additional information in order to further evaluate the risk is identified, collected and analysed
3. Determine risk rating for product
- 3.1. Acceptability of risk is determined using all available information in accordance with organisation policy and procedures and underwriting guidelines
- 3.2. Risk rating that minimises risk liability is established within delegated authority
- 3.3. The basis for the risk rating decision is documented
- 3.4. Compliance with relevant legislation and organisation policy is considered
- 3.5. Risk rating information is documented in a format that may be used to guide underwriting and product/policy amendment decisions
4. Communicate results to appropriate personnel
- 4.1. Results of research and analysis are presented to appropriate personnel in a clear, concise format
- 4.2. Risk rating recommendations are reviewed against existing products and organisational policies
- 4.3. Risk rating recommendations are finalised and relevant personnel notified
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.
Insurance product types may include:
accidental damage
additional benefits
burglary/theft
business interruption
business special risks
commercial
commercial motor
construction risks
crop
defined events
domestic
electronic equipment
employee fraud
engineering plant
environment and pollution
fire and perils
general and products liability
glass
Industrial Special Risks (ISR)
livestock
machinery breakdown
money
multi-risk
other personal items
package contracts
personal accident and illness
professional indemnity
public liability
sprinkler leakage
transit
travel
directors and officers.
Investment product types may be within the following investment contexts :
management funds
unit trusts
superannuation.
Relevant information may include:
geographic and demographic data
insurance products, premiums, extent of insurance coverage and other conditions of the insurance contract
investment product information, data and trends
medical reports, rate tables and other documents and reference materials
new and renewal applications trends and data.
Organisational policies may include:
basis of actuarial analysis and decisions
risk assessment policies and procedural guidelines
underwriting policies and procedures.
Relevant personnel may include:
actuaries
intermediaries
managers or supervisors
marketing and sales personnel
other relevant organisation personnel
underwriters.
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.
Insurance product types may include:
accidental damage
additional benefits
burglary/theft
business interruption
business special risks
commercial
commercial motor
construction risks
crop
defined events
domestic
electronic equipment
employee fraud
engineering plant
environment and pollution
fire and perils
general and products liability
glass
Industrial Special Risks (ISR)
livestock
machinery breakdown
money
multi-risk
other personal items
package contracts
personal accident and illness
professional indemnity
public liability
sprinkler leakage
transit
travel
directors and officers.
Investment product types may be within the following investment contexts :
management funds
unit trusts
superannuation.
Relevant information may include:
geographic and demographic data
insurance products, premiums, extent of insurance coverage and other conditions of the insurance contract
investment product information, data and trends
medical reports, rate tables and other documents and reference materials
new and renewal applications trends and data.
Organisational policies may include:
basis of actuarial analysis and decisions
risk assessment policies and procedural guidelines
underwriting policies and procedures.
Relevant personnel may include:
actuaries
intermediaries
managers or supervisors
marketing and sales personnel
other relevant organisation personnel
underwriters.
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:
interpret and apply organisation policy and procedures and compliance with legislation and regulations and industry codes of practice in monitoring, analysing and determining risk ratings
apply knowledge and skills in the area of risk identification and assessment.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the 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 organisation records
access to organisation policies and procedures.
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
observing processes and procedures in workplaces
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports
setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment
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:
interpret and apply organisation policy and procedures and compliance with legislation and regulations and industry codes of practice in monitoring, analysing and determining risk ratings
apply knowledge and skills in the area of risk identification and assessment.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the 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 organisation records
access to organisation policies and procedures.
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
observing processes and procedures in workplaces
verbal or written questioning on underpinning knowledge and skills
evaluating samples of work
accessing and validating third party reports
setting and reviewing workplace projects and business simulations or scenarios.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUS33 | FNSISV505 | Determine risk rating for investment and insurance products | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S727 | FNS51110 | Diploma of General Insurance | Qualification |
| D776 | FNS51312 | Diploma of Life Insurance | Qualification |