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 will affect performance.
The following variables 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. If bold italicised text is shown in Performance Criteria, details of the text are provided in the Range Statement.
Forecasts may include:
premium
management expenses
short term (1 year) or long term (5 year)
reinsurance proposed levels
claims
investment income
capital expenditure
Company policy and procedures may include:
operations manuals
internal control guidelines
computer system documentation
Current and historical financial reports may include:
new business reports
loss reports
change in renewal date of policies
customer retention
commission and charges ratios
External environment may include:
market place
activities of competitors
inflation rates
consumer activity
softness/hardness of market
government policy
finance markets
Models may include:
alternative scenarios
sensitivity analysis
format for calculations
cost/profit centre analysis
simulations

models can be stand alone or be driven from computer ledgers. Include account structure at summary level and key ratios
Users may include:
branch managers
product managers
directors
banks
claims managers
Australian Bureau of Statistics
regional/state managers
distribution stream managers
finance section
shareholders
underwriting managers

EVIDENCE GUIDE
Assessment of performance requirements in the unit should be undertaken in an industry context. The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competency for the unit. Competency is demonstrated by performance of all stated criteria including the Range Statement applicable to the workplace.
Overview of assessment requirements
To achieve competency in this unit, a person must be able to demonstrate:
knowledge of company policies and procedures regarding preparing financial forecasts and projections
knowledge of standard accounting principles and techniques
knowledge of external environmental factors affecting or influencing forecasts and projections
ability to plan preparation timetable
ability to identify assumptions and parameters
ability to issue instructions and relevant aids for preparation of forecasts and projections
ability to collect, consolidate, model and analyse data
ability to document results and obtain approval
Critical aspects of evidence
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.
Assessment requirements
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 and other methods 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 personal/financial 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 standard commercial computer hardware, software, telephones, facsimiles, and other relevant office equipment.