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.
Risk exposure may include:
credit risks
interest rate risks
contractual risks
currency risks
environmental and operational risk
Factors supporting or driving risk may include:
organisational program costs
employment costs
lending and repayment criteria
payment and billing schedules
lending and borrowing environments
Standard financial analysis techniques may include:
capital budgeting
cost-benefit analysis
'what if' analysis
time series
bivariate and multivariate analyses
Risk management options may include:
quantification of risks
periodic reporting
decision making authorities
policy statements
forecasting
comparative analysis
Financial recording systems may include:
accrual accounting reporting
transaction recording
operating procedures and manuals
comparative costings
budget reviews
organisational communication processes
Data sources may include:
budgets and forecasts
financial statements and reports
market valuations
Australian Bureau of Statistics (ABS) economic data
financial markets monitoring services (eg Reuters)
credit ratings
Asset structures and liabilities may include:
property investments
shares, bonds, securities
loans, leases, debts
plant and equipment
personnel
cash accounts
Variances and parameters may include:
budget expenditures
profits and losses
rate of investment returns
unit costs
Inventories may include:
assets and liabilities
repayment and payment schedules
compliance and completion timetables
cost structures
returns and performance over time
Organisational attitudes may include:
risk aversion
risk taking
risk minimisation
proportional risk management

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 standard financial analysis techniques
knowledge of organisation's attitude to risk
ability to identify financial risk
ability to develop risk management processes
ability to analyse financial histories
ability to establish processes to minimise risks
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:
Prerequisite units:
FNSACCT503B Manage budgets and forecasts.
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:
Assessment of this unit of competence requires access to suitable resources to demonstrate competence.
Assessment instruments, including personal planner and assessment record book.
Access to registered provider of assessment services.