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FNSACC609 Evaluate financial risk FNSACC609 Evaluate financial risk Release: 2 FNSACC609 Evaluate financial risk Date this document was generated: 6 September 2018 Approved Page 2 of 5 © Commonwealth of Australia, 2018 PwC’s Skills for Australia FNSACC609 Evaluate financial risk Modification History Release Comments Release 2 This version first released with FNS Financial Services Training Package Version 3.1. Update to pre-requisite unit code Application 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. Pre-requisite Unit FNSACC511 Provide financial and business performance information Unit Sector Accounting Elements and Performance Criteria ELEMENT PERFORMANCE CRITERIA Elements describe the Performance criteria describe the performance needed to FNSACC609 Evaluate financial risk Date this document was generated: 6 September 2018 Approved Page 3 of 5 © Commonwealth of Australia, 2018 PwC’s Skills for Australia ELEMENT PERFORMANCE CRITERIA essential outcomes. demonstrate achievement of the element. 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 FNSACC609 Evaluate financial risk Date this document was generated: 6 September 2018 Approved Page 4 of 5 © Commonwealth of Australia, 2018 PwC’s Skills for Australia ELEMENT PERFORMANCE CRITERIA 4.4 Develop, review and communicate parameters for variances in financial outcomes to support financial decision making 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 1.1, 1.2, 2.2, 3.1, 3.2 Uses highly developed research skills and critically analyses complex financial information Writing 2.3, 2.4, 4.2, 4.4 Prepares written analyses and forecasts that clearly explain relationships between data and advice Oral Communication 4.4 Participates effectively in verbal exchanges using active listening and questioning to gauge organisational attitudes and obtain feedback on proposed options Numeracy 1.1, 1.3, 2.3, 2.4, 3.1-3.3, 4.1, 4.4 Performs mathematical calculations and uses a range of mathematical problem-solving techniques to analyse trends and forecast financial data Navigate the world of work 2.2 Recognises and responds to relevant ethical, legislative and organisational requirements in managing risk and meets expectations associated with own role Get the work done 1.1-1.3, 2.1-2.4, 3.1-3.3, 4.1-4.4 Plans and sequences complex activities, and correctly schedules risk and financial performance monitoring and reporting Plans and implements new systems and processes with strategic implications for the organisation Uses systematic analytical problem-solving processes in complex, routine and non-routine situations, gathering information and identifying and evaluating options against criteria Evaluates effectiveness of systems and processes to inform decisions on how to implement improvements Creates tools and systems to enhance the decision-making process Uses digital technologies to access, organise and analyse complex data FNSACC609 Evaluate financial risk Date this document was generated: 6 September 2018 Approved Page 5 of 5 © Commonwealth of Australia, 2018 PwC’s Skills for Australia Unit Mapping Information Code and title current version Code and title previous version Comments Equivalence status FNSACC609 Evaluate financial risk FNSACC609A Evaluate financial risk Updated to meet Standards for Training Packages Minor edits to clarify intent of element Prerequisite updated No equivalent unit Links Companion Volume implementation guides are found in VETNet - https://vetnet.education.gov.au/Pages/TrainingDocs.aspx?q=c7200cc8-0566-4f04-b76f-e89fd 6f102fe FNSACC609 Evaluate financial risk Modification History Application Pre-requisite Unit Unit Sector Elements and Performance Criteria Foundation Skills Unit Mapping Information Links