Unit of competency Outline
Date retreived
22/07/2026 3:02 PM AWST
22/07/2026 3:02 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Evaluate financial risk
Evaluate financial risk
Unit of competency
National Code
FNSACC609A
FNSACC609A
State Code
D4054
D4054
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
31/07/2014
Field of Education
080101 - Accounting
Original Release Date
31/07/2014
Nominal Hours
80
Description
This unit describes the performance outcomes, skills and knowledge required to assess financial risk and exposure, analyse financial histories and establish processes to minimise risks associated with an organisation's cash flow or assets and securities.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so Commonwealth, State or Territory requirements should be confirmed with the relevant body.
Notes
Elements and Performance Criteria
1. Assess financial risk exposure
- 1.1. Magnitude and volatility of organisational risks are measured to determine the extent of risk exposure and the implications for financial strategies
- 1.2. Key factors supporting or driving risk exposure are identified and timeframes established to monitor and improve performance
- 1.3. Short-term and long-term financial outcomes and projections are compared with actual cash flows using standard financial analysis techniques to determine effects on liquidity and budget adjustments
2. Develop risk management processes
- 2.1. Risk management options include assessments of alternatives, criteria for success, and estimates of long-term and short-term effects
- 2.2. Strategies are developed using standard financial analysis techniques to identify financial flows, trends in returns and adjustments in asset values
- 2.3. Financial recording systems are established to monitor and evaluate changes in market conditions and business needs using a range of data sources
- 2.4. Risk management strategies are developed that optimise the mix of asset structures and liabilities in operations and ensures flexibility to meet changing environments
3. Analyse financial histories
- 3.1. Financial performance is evaluated using trends and patterns that identify the magnitude and volatility of financial exposures
- 3.2. Long and short-term financial outcomes are compared with forecast outcomes to assess variances and parameters in performance and the reliability of financial advice
- 3.3. Incidents and factors increasing or diminishing financial performance are identified and analysed using standard financial analysis techniques
4. Establish processes to minimise risks
- 4.1. Recording systems to monitor financial outcomes are developed and reviewed to guide and document decision making
- 4.2. Inventories are maintained and established to ensure up-to-date records on the value of assets and liabilities
- 4.3. The contribution of organisational attitudes to risk taking is assessed and incorporated in the risk analysis process
- 4.4. Parameters for variances in financial outcomes are developed, reviewed and communicated to support financial decision making
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, if used in the performance criteria, is detailed below. 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) may also be included.
Risk exposure may include:
contractual risks
credit risks
currency risks
environmental and operational risks
interest rate risks.
Factors supporting or driving risk may include:
employment costs
lending and borrowing environments
lending and repayment criteria
organisational program costs
payment and billing schedules.
Standard financial analysis techniques may include:
'what if' analysis
bivariate and multivariate analyses
capital budgeting
cost-benefit analysis
time series.
Risk management options may include:
comparative analysis
decision making authorities
forecasting
periodic reporting
policy statements
quantification of risks.
Financial recording systems may include:
accrual accounting reporting
budget reviews
comparative costings
operating procedures and manuals
organisational communication processes
transaction recording.
Data sources may include:
Australian Bureau of Statistics (ABS) economic data
budgets and forecasts
credit ratings
financial markets monitoring services
financial statements and reports
market valuations.
Asset structures and liabilities may include:
cash accounts
loans, leases and debts
personnel
plant and equipment
property investments
shares, bonds and securities.
Variances and parameters may include:
budget expenditures
profits and losses
rate of investment returns
unit costs.
Inventories may include:
assets and liabilities
compliance and completion timetables
cost structures
repayment and payment schedules
returns and performance over time.
Organisational attitudes may include:
proportional risk management
risk aversion
risk minimisation
risk taking.
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, if used in the performance criteria, is detailed below. 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) may also be included.
Risk exposure may include:
contractual risks
credit risks
currency risks
environmental and operational risks
interest rate risks.
Factors supporting or driving risk may include:
employment costs
lending and borrowing environments
lending and repayment criteria
organisational program costs
payment and billing schedules.
Standard financial analysis techniques may include:
'what if' analysis
bivariate and multivariate analyses
capital budgeting
cost-benefit analysis
time series.
Risk management options may include:
comparative analysis
decision making authorities
forecasting
periodic reporting
policy statements
quantification of risks.
Financial recording systems may include:
accrual accounting reporting
budget reviews
comparative costings
operating procedures and manuals
organisational communication processes
transaction recording.
Data sources may include:
Australian Bureau of Statistics (ABS) economic data
budgets and forecasts
credit ratings
financial markets monitoring services
financial statements and reports
market valuations.
Asset structures and liabilities may include:
cash accounts
loans, leases and debts
personnel
plant and equipment
property investments
shares, bonds and securities.
Variances and parameters may include:
budget expenditures
profits and losses
rate of investment returns
unit costs.
Inventories may include:
assets and liabilities
compliance and completion timetables
cost structures
repayment and payment schedules
returns and performance over time.
Organisational attitudes may include:
proportional risk management
risk aversion
risk minimisation
risk taking.
EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
apply standard financial analysis techniques and knowledge of an organisation's attitude to risk to identify financial risk
develop risk management processes
analyse financial histories and establish processes to minimise risks.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to an integrated financial software system and data.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
apply standard financial analysis techniques and knowledge of an organisation's attitude to risk to identify financial risk
develop risk management processes
analyse financial histories and establish processes to minimise risks.
Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to an integrated financial software system and data.
Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills which may include formal examinations
setting and reviewing workplace projects and business simulations or scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| C9616 | FNSACCT609B | Evaluate financial risk | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUQ18 | FNSACC609 | Evaluate financial risk | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| S735 | FNS60210 | Advanced Diploma of Accounting | Qualification |
| J324 | PSP60312 | Advanced Diploma of Government (Financial Management) | Qualification |
| D728 | FNS60811 | Advanced Diploma of Integrated Risk Management | Qualification |
| D721 | FNS50811 | Diploma of Integrated Risk Management | Qualification |