Elements and Performance Criteria

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 in the performance criteria is detailed below. Add any 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.
Types of risks may relate to:
administrative and business systems, policies and practices
commercial and legal relationships between the agency, consumers and other organisations
consumer risk
economic and financial circumstances
individual actions, such as discrimination and ineffective communication
management activities and controls
natural events

non-compliance with legislative and regulatory requirements, including:
consumer protection
OHS
trade practices
non-compliance with quality system
physical and personal security
political circumstances, such as legislative change
property ownership, including intellectual property
technological and technical issues, both internal and external to the agency, such as loss of data.
Agency, clients and other stakeholders may include:
consumers and clients
co-owners
financial institutions that have an interest in the agency
principals
staff and others to whom a duty of care is owed.
Causes of risks may include:
commercial and legal relationships
economic circumstances and scenarios
human behaviour
inaccurate information provided by clients
individual activities
management activities and controls
natural events
political circumstances
technological issues.
Potential impact of risks may include:
capital reserves
cash flow viability and resulting liquidity
goodwill value
nett worth of the business
return on investment.
Agency procedures for responding to risks may include:
discussion with supervisor and colleagues
documentation of risks
reporting risk to immediate supervisor.

EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.
Overview of assessment
This unit of competency could be assessed through case studies and practical demonstration of identifying and responding to risks in an agency environment. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.
Critical aspects for assessment and evidence required to demonstrate competency in this unit
A person who demonstrates competency in this unit must be able to provide evidence of:
identifying risks in an agency environment
identifying causes and potential impact of risks on agency, clients and other stakeholders
responding to risks in an agency environment in line with scope of personal responsibilities as well as agency and legislative requirements
assessing personal skills in identifying and responding to agency risk.
Context of and specific resources for assessment
Resource implications for assessment include:
access to suitable simulated or real opportunities and resources to demonstrate competence
assessment instruments that may include personal planner and assessment record book
access to a registered provider of assessment services.
Where applicable, physical resources should include equipment modified for people with disabilities.
Access must be provided to appropriate learning and/or assessment support when required.
Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.
Validity and sufficiency of evidence require that:
competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace
where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence
all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence
where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time
assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.
In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.