Unit of competency Outline
Date retreived
22/07/2026 9:19 PM AWST
22/07/2026 9:19 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.
Undertake risk analysis for an insurance broking client
Undertake risk analysis for an insurance broking client
Unit of competency
National Code
FNSIBK505A
FNSIBK505A
State Code
D4188
D4188
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
55
Description
This unit describes the performance outcomes, skills and knowledge required to analyse risks for a new or renewal broking client so that potential insurers can determine a premium.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. Select methods to assess clients risks
- 1.1. Risk assessment is completed in compliance with brokerage guidelines
- 1.2. Industry and general environmental information is collected as input to risk analysis
- 1.3. Specialists with relevant expertise to conduct risk assessment and prepare risk report are recommended to client
- 1.4. Relevant criteria for selection of specialist is provided to client
- 1.5. Comprehensive records of risk analysis and actions taken are maintained
2. Identify how risks are managed
- 2.1. Types of risks are identified and ranked as insurable and uninsurable and how they are to be managed
- 2.2. Potential losses identified and probability of loss assessed
- 2.3. Insurable risks classified as standards or above (low risk) or below standard (high risk)
- 2.4. Controls to minimise effect of potential losses are identified
- 2.5. Risks to be managed by insurance are identified
3. Make recommendation on management of risks to client
- 3.1. Stakeholders are identified
- 3.2. Recommendations for insurance and risk management plan covering resources, timing, responsibilities and monitoring and reporting of impact on overall risk exposure are recommended to client
- 3.3. Views of stakeholders are sought and information is provided to stakeholders at each stage of assessing the organisation's exposure to risks
4. Prepare information for insurer
- 4.1. Information to prepare accurate broking skip is extracted from risk assessment information
- 4.2. Information is presented in a manner that allows an insurer to judge the type and extent of cover
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.
Risk may include:
how they can occur and impact on the achievement of business objectives
their area of impact
their nature.
Analysis may include:
mathematical calculations or statistics
qualitative and quantitative data or information.
Risk assessment may include:
based on likelihood, consequences and mitigating effects.
Ranked may include:
according to exposure level
consequences/severity
likelihood of occurrence
management priorities/policies.
Controls may include:
measures which limit the impact of risks.
Stakeholders may include:
those within the organisation who have an interest in the function under consideration, including:
policy makers
those providing services
those receiving services from this organisation.
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.
Risk may include:
how they can occur and impact on the achievement of business objectives
their area of impact
their nature.
Analysis may include:
mathematical calculations or statistics
qualitative and quantitative data or information.
Risk assessment may include:
based on likelihood, consequences and mitigating effects.
Ranked may include:
according to exposure level
consequences/severity
likelihood of occurrence
management priorities/policies.
Controls may include:
measures which limit the impact of risks.
Stakeholders may include:
those within the organisation who have an interest in the function under consideration, including:
policy makers
those providing services
those receiving services from this organisation.
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
identify risk specialists for additional input.
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 organisational 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:
apply risk management principles and practices
identify risk specialists for additional input.
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 organisational 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 |
|---|---|---|---|
| AUR62 | FNSIBK514 | Manage a complex risk portfolio for a broking client | Unit of competency |
| AUR53 | FNSIBK515 | Monitor broking client requirements and establish loss control programs | Unit of competency |
| AUR50 | FNSIBK513 | Prepare a submission for new business | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S728 | FNS51210 | Diploma of Insurance Broking | Qualification |