Unit of competency Outline

Date retreived
21/07/2026 11:52 PM AWST

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Advise clients on financial risk

Advise clients on financial risk

Unit of competency
National Code
FNSFMK503
State Code
AUR16
TGA Status
Replaced
DTWD Status
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
080101 - Accounting
Original Release Date
16/09/2015
Nominal Hours
60
Description
This unit describes the skills and knowledge required to determine a client’s financial risk profile, assess risk management options and produce detailed reports to present findings to clients and other relevant people.It applies to individuals with specialised knowledge who use analytical skills and systematic approaches to advise and make recommendations 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. Determine client risk profile
  • 1.1 Use effective communication skills to confirm client’s financial needs, expectations and objectives in accordance with organisational requirements
  • 1.2 Obtain valid and relevant information to determine complexity of client needs and analyse their asset and liability management framework
  • 1.3 Assess risk based on understanding of client’s personal situation, operating environment or core business
  • 1.4 Establish client’s risk tolerance level and discuss with client to confirm risk profile
2. Assess product risk relative to client risk profile
  • 2.1 Identify a range of products that meet client objectives
  • 2.2 Access information on risk associated with these products using appropriate analytical techniques
  • 2.3 Develop assessment criteria for measuring level of potential or existing risk, together with assessment of consequences in accordance with organisational procedures
  • 2.4 Compare risk for a range of financial products to client’s risk profile and stated objectives in accordance with client and organisational requirements
  • 2.5 Assess alternative products and estimate long-term and short-term effects
  • 2.6 Identify, analyse and discuss incidents and factors increasing or diminishing financial performance with client
  • 2.7 Confirm that client understands the risk in any potential strategy recommendation
3. Report findings
  • 3.1 Document risk management alternatives in accordance with organisational requirements and relevant legislation
  • 3.2 Prepare and explain retail client disclosure documents, outlining client responsibilities to client
  • 3.3 Update, modify and accurately maintain client information in accordance with organisational and legislative requirements
  • 3.4 Prepare and file risk analysis documentation in accordance with organisational and legislative requirements
No information
No information
Replaces
State Code National Code Title Type
D4125 FNSFMK503A Advise clients on financial risk Unit of competency
Replaced By
State Code National Code Title Type
OCI59 FNSFMK525 Analyse clients' financial risk Unit of competency