Unit of competency Outline
Date retreived
22/07/2026 3:59 PM AWST
22/07/2026 3:59 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.
Analyse risk mitigation in the operations process
Analyse risk mitigation in the operations process
Unit of competency
National Code
FNSFMK507A
FNSFMK507A
State Code
D4129
D4129
TGA Status
Replaced
Replaced
DTWD Status
Replaced
Replaced
State Implementation and Classification
Approved Date
29/07/2014
Field of Education
080399 - Business And Management, N.e.c.
Original Release Date
29/07/2014
Nominal Hours
55
Description
This unit describes the performance outcomes, skills and knowledge required to analyse financial markets operations risks and determine appropriate mitigation and treatment methods.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. Analyse financial market operation risk profiles
- 1.1. Types and characteristics of financial markets risks are determined
- 1.2. The organisation's exposure to identified financial markets risks is assessed using existing measures and relevant risk measurement techniques and tools
- 1.3. Identified risks are ranked against likelihood and organisational impact
2. Identify a risk mitigation strategy for risks
- 2.1. Risk mitigation options for each risk and treatments for risk mitigation are considered
- 2.2. Implementation time for each treatment and the costs and benefits arising from the treatment options are quantified and appropriate treatments selected
- 2.3. Treatment priorities and the adequacy of existing controls are reviewed and the need for additional or alternative controls established
3. Develop risk mitigation recommendations
- 3.1. Personnel and resources necessary to carry out actions undertaken are formulated
- 3.2. Viable recommendations are provided to management for each stage of treating organisational risks
- 3.3. Key indicators of progress and success are determined
- 3.4. A monitoring system for the effectiveness of risk treatments is developed
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.
Financial markets risks may include:
compliance risk
client credit risk
fraudulent activity risk
legal risk
liquidity risk
market risk
operational or security risk
reputation risk
settlement agency or bank risk
systemic risk
technology inadequacy or failure risk.
Existing measuresand relevant risk measurement techniques and tools may include:
audits and internal surveys
credit analysis
documentation and data security
default procedures
legal obligations review
personnel checking procedures
risk rating and updating processes
settlement procedures
technology review
transaction entry and capture processes.
Risk mitigation options are specific tools including:
diagnostic tools used to identify and measure risks
monitoring tools used to monitor risks
preventative tools used to mitigate risks
remedial tools used to address crystallised risks.
Treatments are specific solutions within risk mitigation options and may include:
administrative or policy change
education and training or personnel
hedging
improved security
insurance of risk
involvement of external agencies
reduction of risk by greater control.
Costs and benefits may include:
financial benefits and costs
non-financial benefits and costs.
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.
Financial markets risks may include:
compliance risk
client credit risk
fraudulent activity risk
legal risk
liquidity risk
market risk
operational or security risk
reputation risk
settlement agency or bank risk
systemic risk
technology inadequacy or failure risk.
Existing measuresand relevant risk measurement techniques and tools may include:
audits and internal surveys
credit analysis
documentation and data security
default procedures
legal obligations review
personnel checking procedures
risk rating and updating processes
settlement procedures
technology review
transaction entry and capture processes.
Risk mitigation options are specific tools including:
diagnostic tools used to identify and measure risks
monitoring tools used to monitor risks
preventative tools used to mitigate risks
remedial tools used to address crystallised risks.
Treatments are specific solutions within risk mitigation options and may include:
administrative or policy change
education and training or personnel
hedging
improved security
insurance of risk
involvement of external agencies
reduction of risk by greater control.
Costs and benefits may include:
financial benefits and costs
non-financial benefits and costs.
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:
effectively apply risk management principles and practices
analyse risks and determine appropriate mitigation strategies
develop sound recommendations on risk mitigation.
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 financial services organisational data
access to Australian Standard 4360 Risk Management.
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
setting and reviewing 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:
effectively apply risk management principles and practices
analyse risks and determine appropriate mitigation strategies
develop sound recommendations on risk mitigation.
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 financial services organisational data
access to Australian Standard 4360 Risk Management.
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
setting and reviewing scenarios
evaluating samples of work
accessing and validating third party reports.
Guidance information for assessment
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| AUR20 | FNSFMK507 | Analyse risk mitigation in the operations process | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| D722 | FNS51011 | Diploma of Financial Markets | Qualification |