Unit of competency Outline

Date retreived
22/07/2026 3:13 PM AWST

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Determine and manage risk exposure strategies

Determine and manage risk exposure strategies

Unit of competency
National Code
FNSRSK602
State Code
AUS93
TGA Status
Replaced
DTWD Status
Transition (Replaced)
Current Release Number
1.00
Current Release Date
25/03/2015
View on TGA
State Implementation and Classification
Approved Date
16/09/2015
Field of Education
080399 - Business And Management, N.e.c.
Original Release Date
16/09/2015
Nominal Hours
50
Description
This unit describes the skills and knowledge required to analyse risk factors for financial investment and insurance products, determine appropriate risk exposure management strategies, communicate these strategies to relevant staff and intermediaries, and personally manage the risk assessment strategies. It is aimed at setting the strategy for portfolio managers, including what types of business will be targeted and not targeted.It applies to individuals who use specialised knowledge, systematic approaches and analytical skills to provide leadership in managing strategic organisational activity.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.
Notes
Elements and Performance Criteria
1. Determine appropriate risk assessment strategies
  • 1.1 Identify and evaluate appropriate criteria for acceptance or rejection of risks using Australian risk management standards
  • 1.2 Determine performance targets for organisation’s capacity to assess and accept risk
  • 1.3 Identify organisation’s business risk elements and control risk elements
2. Evaluate risk and compliance factors
  • 2.1 Identify and collate accurate, reliable and up-to-date information on these elements in form suitable for analysis, and comprehensively investigate and review data accessed
  • 2.2 Evaluate risk elements against known exposure factors and consider compliance with relevant legislation, regulatory guidelines, industry sector compliance requirements and organisational policy
  • 2.3 Evaluate risk acceptability factors within context of organisation’s mitigating capabilities
  • 2.4 Evaluate risk acceptability factors within context of organisational requirements
3. Establish risk acceptance criteria
  • 3.1 Establish terms and conditions of risk acceptance criteria for low hazard risk areas that meet market conditions and are within organisation’s accepted levels of exposure
  • 3.2 Establish terms and conditions of risk acceptance for high hazard risk areas that meet market conditions and are within organisation’s accepted levels of exposure
  • 3.3 Clearly document risk acceptance strategies, criteria and guidelines to meet requirements of relevant guidelines determined within delegated authorities
  • 3.4 Obtain and review relevant feedback and finalise risk acceptance criteria, and associated authority limitations, conditions and guidelines
4. Develop risk management strategies
  • 4.1 Select risk management for each risk and develop implementation plan
  • 4.2 Identify and develop procedures that staff should follow in operationalising strategy
5. Implement risk assessment strategies
  • 5.1 Communicate risk assessment strategies, criteria and guidelines to relevant staff and intermediaries
  • 5.2 Monitor risk acceptance strategy implementation
6. Evaluate and review risk assessment strategies
  • 6.1 Evaluate risk assessment strategies to determine effectiveness in achieving risk management objectives, and review as required
  • 6.2 Document and communicate results to relevant staff
No information
No information
Replaces
State Code National Code Title Type
D4314 FNSRSK602A Determine and manage risk exposure strategies Unit of competency
Replaced By
State Code National Code Title Type
OBR60 FNSRSK612 Determine and manage risk exposure strategies Unit of competency