Unit of competency Outline

Date retreived
22/07/2026 3:30 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.

Develop and implement risk mitigation plan

Develop and implement risk mitigation plan

Unit of competency
National Code
FNSRSK601A
State Code
D4313
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
50
Description
This unit describes the performance outcomes, skills and knowledge required to apply knowledge of different financial risk treatment methods to develop and then implement a plan or strategy for the treatment of an organisation's risks.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Select risk mitigation for each risk
  • 1.1. Risk mitigation options for each risk and treatments for risk mitigation are identified
  • 1.2. Implementation time for each treatment and the costs and benefits arising from the treatment options are quantified before appropriate treatments are selected
2. Develop risk mitigation plan
  • 2.1. Treatment priorities and the adequacy of existing controls are reviewed and the need for additional or alternative controls established
  • 2.2. Required actions are identified, documented and allocated
  • 2.3. Budget, timeframes and reporting schedules are established
3. Develop implementation plan
  • 3.1. Tasks to be undertaken are identified and personnel and resources to carry out actions organised
  • 3.2. Indicators of progress and success are determined
  • 3.3. Monitoring system for the effectiveness of treatments is established
4. Communicate with relevant internal and external stakeholders
  • 4.1. Stakeholders are identified and their views sought
  • 4.2. Information is provided to stakeholders at each stage of treating the organisation's 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.
Risk mitigation options are specific tools including:
diagnostic tools used to identify and measure risks
monitoring tools used to monitor risks
preventative tools used to mitigate risks
remedial tools used to address crystallised risks.
Treatments are specific solutions within risk mitigation options and may include:
currency hedging
insurance of risk
reduction of risk by greater control
removal of risk by use of different methods.
Costs and benefits may include:
financial benefits and costs
non-financial benefits and costs.
Stakeholders may be:
those internal to the organisation who have an interest in the function under consideration, including:
those providing services
policy makers
external stakeholders outside 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:
effectively choose and apply risk management principles and practices
analyse financial risks and undertake cost analysis
develop and monitor budgets and implementation schedules.

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
evaluating samples of work
accessing and validating third party reports.

Guidance information for assessment
Replaced By
State Code National Code Title Type
AUS79 FNSRSK601 Develop and implement risk mitigation plan Unit of competency