Unit of competency Outline

Date retreived
22/07/2026 9:26 PM AWST

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Evaluate financial risk

Evaluate financial risk

Unit of competency
National Code
FNSACC609
State Code
AUQ18
TGA Status
Current
DTWD Status
Approved
Current Release Number
3.00
Current Release Date
23/09/2022
View on TGA
State Implementation and Classification
Approved Date
16/09/2015
Field of Education
080101 - Accounting
Original Release Date
16/09/2015
Nominal Hours
35
Description
This unit describes the 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.It applies to experienced individuals with specialised knowledge who use well-developed analytical skills and systematic approaches to manage and mitigate risk in their area of responsibility.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. Assess financial risk exposure
  • 1.1 Identify and measure magnitude and volatility of organisational risks to determine extent of risk exposure and implications for financial strategies
  • 1.2 Identify key factors supporting or driving risk exposure and establish timeframes to monitor and improve performance
  • 1.3 Compare short-term and long-term financial outcomes and projections with actual cash flows using standard financial analysis techniques to determine effects on liquidity and budget adjustments
2. Develop risk management processes
  • 2.1 Ensure risk management options include assessments of alternatives, criteria for success and estimates of long-term and short-term effects
  • 2.2 Identify and evaluate key ethical, legislative and organisational considerations for risk management options
  • 2.3 Develop strategies using standard financial analysis techniques to identify financial flows, trends in returns and adjustments in asset values
  • 2.4 Establish financial recording systems to monitor and evaluate changes in market conditions and business needs using range of data sources
  • 2.5 Develop risk management strategies that optimise mix of asset structures and liabilities in operations and ensure flexibility to meet changing environments
3. Analyse financial histories
  • 3.1 Evaluate financial performance using trends and patterns that identify magnitude and volatility of financial exposures
  • 3.2 Compare long-term and short-term financial outcomes with forecast outcomes to assess variances and parameters in performance and reliability of financial advice
  • 3.3 Identify and analyse incidents and factors increasing or diminishing financial performance using standard financial analysis techniques
4. Establish processes to minimise risks
  • 4.1 Develop and review recording systems to monitor financial outcomes and to guide and document decision making
  • 4.2 Maintain and establish inventories to ensure up-to-date records on value of assets and liabilities
  • 4.3 Assess contribution of organisational attitudes to risk taking and incorporate in risk analysis process
  • 4.4 Develop, review and communicate parameters for variances in financial outcomes to support financial decision making
No information
No information
Replaces
State Code National Code Title Type
D4054 FNSACC609A Evaluate financial risk Unit of competency