Unit of competency Outline

Date retreived
22/07/2026 8:19 PM AWST

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Determine and manage risk exposure strategies

Determine and manage risk exposure strategies

Unit of competency
National Code
FNSRSK612
State Code
OBR60
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
01/07/2020
View on TGA
State Implementation and Classification
Approved Date
02/10/2020
Field of Education
080399 - Business And Management, N.e.c.
Original Release Date
02/10/2020
Nominal Hours
55
Description
This unit describes the skills and knowledge required to analyse risk factors for financial products, determine appropriate risk exposure management strategies, communicate these strategies to relevant staff and intermediaries, and manage the risk assessment strategies. It is aimed at setting the strategy for portfolio managers, including the types of business to target.It applies to individuals who use specialised knowledge, systematic approaches and analytical skills to provide leadership in managing strategic organisational activity in financial services organisations.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the relevant regulator for specific guidance on requirements.
Notes
Elements and Performance Criteria
1. Determine risk assessment strategies
  • 1.1 Identify and evaluate criteria for acceptance or rejection of risks using standards for risk management as indicated by regulators
  • 1.2 Determine organisational performance targets and capacity to assess and accept risk
  • 1.3 Identify business risk and control risk elements of an organisation
2. Review risk and compliance factors
  • 2.1 Identify and collate information on business and control risk elements
  • 2.2 Investigate and review the data and information
  • 2.3 Evaluate risk elements against known exposure factors and compliance where relevant with legislation, regulatory guidelines, industry sector compliance requirements and organisational policy
  • 2.4 Evaluate risk acceptability factors within context of organisation’s mitigating capabilities and organisational requirements
  • 2.5 Critically analyse risk considerations in the business strategic planning process in line with appetite
3. Develop risk acceptance criteria
  • 3.1 Establish terms and conditions of risk acceptance criteria to satisfactorily cover organisational needs and risks
  • 3.2 Document risk acceptance strategies, criteria and guidelines that meet requirements within delegated authorities
  • 3.3 Obtain and review feedback on risk acceptance strategies, criteria and guidelines
  • 3.4 Finalise risk acceptance criteria, and associated authority limitations, conditions and guidelines
4. Assess operational capital management risk
  • 4.1 Develop fit for purpose capital models that meet regulatory requirements and organisational policies and procedures
  • 4.2 Review risk profile and calculate potential operational risk exposure
  • 4.3 Monitor internal and external losses and re-assess inherent risk and capital requirements
  • 4.4 Undertake internal and external reporting to market and regulatory bodies
5. Assess impact and implement risk acceptance strategies
  • 5.1 Identify and develop procedures and guidelines that staff should follow to adhere to risk acceptance strategy
  • 5.2 Communicate risk assessment strategies, criteria, procedures and guidelines to relevant staff and intermediaries
  • 5.3 Monitor risk acceptance strategy implementation
6. Review risk assessment strategies
  • 6.1 Determine effectiveness of risk acceptance strategies in meeting risk management objectives
  • 6.2 Document and communicate results to relevant staff
No information
No information
Replaces
State Code National Code Title Type
AUS93 FNSRSK602 Determine and manage risk exposure strategies Unit of competency