Unit of competency
Modification History
Release |
Comments |
Release 1 |
This version first released with FNS Financial Services Training Package Version 1.0. |
Application
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.
Unit Sector
Financial markets
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
Elements describe the essential outcomes. |
Performance criteria describe the performance needed to demonstrate achievement of the element. |
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 |
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill |
Performance Criteria |
Description |
Reading |
1.2, 1.3, 2.1-2.2, 2.4-2.6, 3.3 |
|
Writing |
1.2, 2.2-2.4, 2.5, 2.7, 3.1-3.4 |
|
Oral Communication |
1.1, 1.2, 1.4, 2.6, 3.2 |
|
Numeracy |
1.2, 2.4, 2.5, 3.1, 3.2, 3.4 |
|
Navigate the world of work |
1.1, 2.1, 2.3, 3.1, 3.3, 3.4 |
|
Interact with others |
1.1, 1.2, 2.7, 3.2 |
|
Get the work done |
1.2, 1.3, 2.1-2.6, 3.1, 3.3, 3.4 |
|
Unit Mapping Information
Code and title current version |
Code and title previous version |
Comments |
Equivalence status |
FNSFMK503 Advise clients on financial risk |
FNSFMK503A Advise clients on financial risk |
Updated to meet Standards for Training Packages Clarified and reordered performance criteria |
Equivalent unit |
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe