Unit of competency Outline

Date retreived
21/07/2026 11:14 PM AWST

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Analyse clients' financial risk

Analyse clients' financial risk

Unit of competency
National Code
FNSFMK525
State Code
OCI59
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
04/11/2020
View on TGA
State Implementation and Classification
Approved Date
11/03/2021
Field of Education
080101 - Accounting
Original Release Date
11/03/2021
Nominal Hours
60
Description
This unit describes the skills and knowledge required to determine a client’s financial risk profile, assess risk management options, produce detailed reports, and provide findings to authorised representatives and other stakeholders.The unit applies to those with specialised knowledge who use analytical skills and systematic approaches to advise and make recommendations in their area of responsibility. Information relating to clients’ financial risk may come from authorised representatives, including financial advisers, or from shareholders, financial organisations, stockbrokers, trustees, agents and intermediaries.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those requirements.
Notes
Elements and Performance Criteria
1. Determine client’s financial situation and risk profile
  • 1.1 Confirm client’s financial needs, expectations and objectives according to organisational requirements
  • 1.2 Obtain valid and relevant information to determine complexity of client needs and client’s current asset and liability management framework
  • 1.3 Assess risk based on understanding of client’s personal situation, and operating environment or core business
  • 1.4 Establish client’s risk tolerance level and discuss with client to confirm risk profile
2. Assess product risk relative to client’s risk profile
  • 2.1 Develop assessment criteria for measuring level of potential and existing risk and for assessing associated consequences according to organisational policies and procedures
  • 2.2 Identify range of products that meet client objectives
  • 2.3 Access information on risks associated with these products and investment risk profile using appropriate analytical techniques
  • 2.4 Assess and compare risk of financial products based on understanding of client’s personal situation, operating environment and core business
3. Assess risk management options
  • 3.1 Evaluate alternative products according to risk assessment and client requirements and estimate short-term and long-term effects
  • 3.2 Identify, analyse and discuss incidents and factors affecting financial performance with authorised representative
  • 3.3 Determine strategy recommendations based on product evaluation and confirm viability with authorised representative
  • 3.4 Confirm with authorised representative client’s understanding of risks relating to potential strategy recommendations
4. Report findings
  • 4.1 Document risk management alternatives according to legislative and organisational requirements
  • 4.2 Prepare retail client disclosure documents that outline client responsibilities
  • 4.3 Update, modify and maintain client information according to legislative and organisational requirements
  • 4.4 Prepare and file risk analysis documentation according to legislative and organisational requirements
No information
No information
Replaces
State Code National Code Title Type
AUR16 FNSFMK503 Advise clients on financial risk Unit of competency