Mapping	Notes	Date
Supersedes and is equivalent to FNSFMK503 - Advise clients on financial risk		03/Nov/2020

Release	Release date
1 1 (this release)	04/Nov/2020

CodeSort Table listing Training packages that include this unit by the Code column	TitleSort Table listing Training packages that include this unit by the Title column	Release
FNS - Financial Services Training Package	Financial Services Training Package	5.0-8.2

CodeSort Table listing Qualifications that include this unit by the Code column	TitleSort Table listing Qualifications that include this unit by the Title column	Usage Recommendation	Release
FNS60920 - Advanced Diploma of Paraplanning	Advanced Diploma of Paraplanning	Current	1-2
FNS60722 - Advanced Diploma of Financial Licensing Management	Advanced Diploma of Financial Licensing Management	Current	1
FNS51022 - Diploma of Financial Markets	Diploma of Financial Markets	Current	1
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Scheme	Code	Classification value
ASCED Module/Unit of Competency Field of Education Identifier	080101	Accounting

Scheme	Code	Classification value	Start date	End date
ASCED Module/Unit of Competency Field of Education Identifier	080101	Accounting	04/Nov/2020

Unit of competency

Modification History

Release	Comments
Release 1	This version first released with FNS Financial Services Training Package Version 5.0.

Application

This unit describes the skills and knowledge required to determine a client’s financial risk profile, assess risk management options, produce detailed reports, and provide findings to authorised representatives and other stakeholders.

The unit applies to those with specialised knowledge who use analytical skills and systematic approaches to advise and make recommendations in their area of responsibility. Information relating to clients’ financial risk may come from authorised representatives, including financial advisers, or from shareholders, financial organisations, stockbrokers, trustees, agents and intermediaries.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those 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’s financial situation and risk profile	1.1 Confirm client’s financial needs, expectations and objectives according to organisational requirements 1.2 Obtain valid and relevant information to determine complexity of client needs and client’s current asset and liability management framework 1.3 Assess risk based on understanding of client’s personal situation, and 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’s risk profile	2.1 Develop assessment criteria for measuring level of potential and existing risk and for assessing associated consequences according to organisational policies and procedures 2.2 Identify range of products that meet client objectives 2.3 Access information on risks associated with these products and investment risk profile using appropriate analytical techniques 2.4 Assess and compare risk of financial products based on understanding of client’s personal situation, operating environment and core business
3. Assess risk management options	3.1 Evaluate alternative products according to risk assessment and client requirements and estimate short-term and long-term effects 3.2 Identify, analyse and discuss incidents and factors affecting financial performance with authorised representative 3.3 Determine strategy recommendations based on product evaluation and confirm viability with authorised representative 3.4 Confirm with authorised representative client’s understanding of risks relating to potential strategy recommendations
4. Report findings	4.1 Document risk management alternatives according to legislative and organisational requirements 4.2 Prepare retail client disclosure documents that outline client responsibilities 4.3 Update, modify and maintain client information according to legislative and organisational requirements 4.4 Prepare and file risk analysis documentation according to legislative and organisational requirements

Foundation Skills

This section describes those language, literacy, numeracy and employment skills that are essential to performance but not explicit in the performance criteria.

S KILL	DESCRIPTION
Numeracy	Uses mathematical equations to perform calculations and comparative analysis techniques to determine trends and compare financial information
Oral communication	Participates in verbal exchanges using active listening and questioning techniques to confirm understanding
Reading	Analyses and evaluates complex information from a range of sources to determine requirements and complete necessary actions
Writing	Records and maintains written information using formats and protocols Prepares formal and informal documents using terminology, language and concepts relevant for the audience and purpose
Planning and organising	Applies systematic and analytical decision-making processes to make recommendations in complex and non-routine situations
Self-management	Takes responsibility for the provision of timely, accurate, secure and relevant information according to legal and organisational requirements Accepts responsibility for planning and sequencing complex tasks and workload
Teamwork	Selects and uses relevant conventions and protocols when liaising or sharing information with authorised representatives
Technology	Uses the main features and functions of digital tools to complete work tasks, store data and access information

Unit Mapping Information

Supersedes and is equivalent to FNSFMK503 Advise clients on financial risk.

Links

Companion Volume Implementation Guide is found on VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe

Assessment requirements

Modification History

Release	Comments
Release 1	This version first released with FNS Financial Services Training Package Version 5.0.

Performance Evidence

The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:

analyse the financial risk profile of at least two different clients.

In the course of the above, the candidate must:

interpret and comply with legislative requirements
assess the impact of financial risks to each client and recommend strategies to control risk
review and prepare risk assessment findings.

Knowledge Evidence

The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:

ethics and regulatory requirements relating to analysing clients’ financial risk, including:

key features of relevant legal principles
disclosure and compliance requirements

organisational policies and procedures for establishing client risk profiles and required reporting
key principles for managing investment and risk
financial information sources and products
client information required for risk profile assessment
key risk characteristics
risk assessment criteria and techniques to assess client risk profile and financial product risk
incidents and factors in economic environment that impact financial performance, including:

characteristics and impacts of economic and business cycles
government monetary and fiscal policies
interest rates, exchange rates and inflation

product and strategy sensitivity to conditions, including to:

economic cycle
supply and demand
economic data
exchange rates
interest rates
government and regulatory policy
correlation risk with other markets or asset classes

key theories of investment and risk management.

Assessment Conditions

Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.

This includes access to:

organisational equipment, technology and software
financial services product information.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Links

Companion Volume Implementation Guide is found on VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd6f102fe

Unit of competency details

FNSFMK525 - Analyse clients' financial risk (Release 1)

Summary

Training packages that include this unit

Qualifications that include this unit

Classifications

Classification history

Content

Unit of competency

Modification History

Application

Unit Sector

Elements and Performance Criteria

Foundation Skills

Unit Mapping Information

Links

Assessment requirements

Modification History

Performance Evidence

Knowledge Evidence

Assessment Conditions

Links

Reports

Resources

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Using training.gov.au

Acknowledgement of Country