[SOLVED] FNSRSK612 DETERMINE AND MANAGE RISK EXPOSURE STRATEGIES Processing

FNS60222 Advanced Diploma of Accounting

FNSRSK612 DETERMINE AND MANAGE RISK EXPOSURE STRATEGIES

Questions

Provide answers to all of the questions below.

Question 1: Why are the criteria for accepting or rejecting risks considered pivotal in the context of financial products?

Question 2: How can an organisation achieve a 95% customer satisfaction score (CSAT) based on post-interaction surveys?

Question 3: Explain credit risk, market risk and liquidity risk.

Question 4: What factors contribute to the credit risk associated with the personal loan of the borrower with low credit score and inconsistent employment history?

Question 5: How can financial statement analysis help in assessing the financial health and stability of a business?

Question 6: Discuss the operational risks specific to financial products.

Question 7: How do financial capabilities and reserves impact the acceptability of risks associated with financial products?

Question 8: Why is it important to critically analyse risk considerations in the business strategic planning process?

Question 9: Why is conducting a comprehensive risk assessment crucial in establishing risk acceptance criteria for financial products?

Question 10: What are the key considerations when formulating guidelines within delegated authorities to meet an organisation’s specific needs and operational requirements?

Question 11: Discuss the steps to obtain feedback on risk acceptance strategies, criteria and guidelines.

Question 12: How do authority limitations align with risk acceptance criteria for financial products?

Question 13: Why is data collection and validation important in the development of capital models?

Question 14: List the steps to review the risk profile of operational capital management.

Question 15:  Write down the key categories of internal operational risks that organisations need to consider in their risk management.

Question 16: Discuss the key steps and best practices to effectively undertake internal reporting.

Question 17: Outline the procedures that staff should follow to adhere to a risk acceptance strategy effectively.

Question 18: Why is effective communication of risk assessment strategies and guidelines crucial in the context of an organisation’s risk management framework?

Question 19: Explain the key components of effectively monitoring the implementation of a risk acceptance strategy.

Question 20: What specific methods or indicators does the organisation use to assess the impact of accepted risks on business performance?

Question 21: Why is it important to document and communicate the results of risk assessment and management activities within an organisation?

Class Activities:

Activity 1:  

Determining risk assessment strategies for financial products is crucial for ensuring the stability and sustainability of the financial sector. Given the complex and dynamic nature of the financial industry, it is essential to employ robust strategies encompassing various risk dimensions. As a warm-up, write down some points which come to your mind when you think of determining and managing risk exposure strategies.

Activity 2:  

On your own, or with a partner, take a look at the list above.  Rank each point in order of importance to you.  Then, (if you are working with another person), compare your results with your partner.  If you are working alone, use the space below to make some reflections on your list.

Points for reflection:

1) Which aspect of determining and managing risk exposure strategies is the most important to you?  Why?

2) Which is the least important?  Why?

3) Do you think that different aspects may be more or less important to you and to others at different points of the lifespan?  Why do you think people’s priorities may change at different points in time?

Activity 3:

In this activity, you are tasked with preparing a presentation that details the methods for monitoring internal and external losses, reassessing inherent risk, and recalibrating capital requirements. Additionally, the presentation should cover strategies to identify and manage the business and control risk elements within an organisation.

Activities 1-3

Answer may vary but student must address the questions according to the following resources:

· Learner Guide

· PowerPoint presentation

· Self-study Guide

· Live Training sessions and discussions with trainers/assessors