Risk Factors and Management Strategies in Finance and Mortgage Broking

Diploma of Finance and
Mortgage Broking
management
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Contents
Contents...........................................................................................................................................2
Activity 1.........................................................................................................................................3
1. Analyse risk factors for the financial investment as well as insurance products in that
service:.........................................................................................................................................3
2. Determine appropriate risk exposure management strategies:................................................3
4. Personally manage the risk assessment strategies...................................................................5
5. Exposure factors and evaluate the risk acceptability factors...................................................5
6. Risk acceptance and rejection criteria.....................................................................................6
7. Document a clear outline of the risk acceptance strategy........................................................6
8. Feedback on and finalised the risk acceptance criteria............................................................7
Activity 2.........................................................................................................................................7
1. Implementation plan:...............................................................................................................7
2. Work breakdown structure......................................................................................................8
2. Resources needed.....................................................................................................................9
4. Procedures for staff member..................................................................................................10
5. Monitor, Evaluate and Review..............................................................................................11
REFERENCES..............................................................................................................................12
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Activity 1
1. Analyse risk factors for the financial investment as well as insurance products in that service:
There are many risk factors to which any business exposed to fiscal investments and insurance
product lines are exposed. Crediting risk, governance risk, developments risk, liquidity risk,
operating risk and tactical risk are included in these threats (Gumusluoglu and Acur, 2016).
Like Westpac Group plc is subject to such numerous kinds of threats where credit
risks of financial corporation 's clients is linked to risks of financial loss arising from financial
liability failure. So there is a risk-based liquidity risk whenever the corporation is incapable to
finance assets and satisfy obligations whereas Governance risk is linked to rules, laws, processes
and regulations determining company's operations administration as well as management. The
collection of guidelines and procedures the company uses to assess level of risk which the
organization is able to consider are key risk acceptability factors within organization. This is pre-
determined risk extent to which the organization is prepared to submit itself.
The emphasis here is towards risk management and adherence. Development risk
is category that covers various risks associated with promotion and communications to
prospective consumers of product lines and services as well as operational risk relates to losses
due to failures of internal procedures. Ultimately, corporations with finance investments and
insurance products such as Westpac are exposed to the strategic risk that covers the possible loss
resulting from an ineffective corporate strategy. And need for the business to concentrate
towards each of such risks while characterizing the risk management strategy at company.
2. Determine appropriate risk exposure management strategies:
Risk exposure management approach will concentrate on focusing on most significant risks
which can assert to be higher risk to the business. Through steering back from purchasing the
risky techniques, there must be riskier inured culture introduced across organization.
Through decentralized decision making framework with centralized ownership of process, risk
management strategy must be implemented across organization. It would ensure safeguard
against undesired risk and better approach towards risk management processes. There
is Australian Standards in Australia: AS/NZS ISO 31000:2009 Risk Management-Principles and
Guidelines. Such criteria map out set of principles, procedures and standards which must be
adopted by organizations when planning and implementing organizational risk managing
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strategies. The aim of standards for risk management here is to provide standardized collection
of principles to help organizations better handle their exposures to risk (Hakanen, Helander and
Valkokari, 2017).
In addition, the approach is to guide process through specific duties and responsibilities
where that's the responsibility of any employee throughout organization to recognize every
potential risk and ensuring that the business avoids any greater risk. Going forward, it should be
observed that, together with quantification of net gains a consistent as well as comprehensive
risk evaluation is expected. In order to minimize the risks of losses and avoid the risk linked with
working with complex instruments, such strategy is appropriate. There will be variety of policies,
practices and guidelines for a company, including authorities which are connected within an
organization to the risk management. Entire Risk management is company-wide practice and the
existing policies, practices and authorities which exist within organization must be investigated
such that one can be confident that the latest risk managing strategies which are being
implemented would be in accordance with existing policies or these policies could be altered. 3.
Communicate these strategies to relevant staff and intermediaries:
Communication within context of the risk management strategies would be achieved by
means of clear and efficient communication primarily defined for various parties. To prevent any
misunderstanding and prevent any missed communication, techniques would be communicated
frequently in well-engaged manner herein. The procedure will begin here
with systematically listing of different audiences such as employee personnel and organization
intermediaries.
Communication would be carried out via email messages and newsletters, reinforced by
notice boards and continual social media activities. Additional informal discussions among
managing personnel and staff personnel acting as source will be empowered to prevent any
misunderstanding and have a concept of comprehending strategies of staff personnel working
across organization at different levels.
The communication strategy would be focused on communication priorities; such as aim
for team members to facilitate risk avoidance including early detection of risk to take appropriate
measures. The contact goal for intermediaries, on other hand, is just to create trust
between organization and intermediaries in order to ensure longer-term association. A frequent
review on the efficacy of existing communication plan must also be conducted. It'll be conducted
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