Risk Management Assessment for Desklib

Risk ManagementAssessment
Assessment cover sheet
In order for your assessment to be marked you must complete and upload all tasks
and this cover sheet via the AAMC Training Group portal. Your assessment tasks must
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Student details
Course name
Assessment name Risk Management Assessment
Surname Given name
Address Postcode
Email
Phone Phone (other)
Current occupation
Industry Years in industry
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submissionto AAMC Training is your own work and NOT the result of plagiarism or excessive
collaboration, and that all material used from any third party has been identified and
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contact your supervisor to discuss your assessment.
Checklist of attachments:
☐Task 1 – Written activities
☐Task 2 – Project
☐Task 3 – Case study 1
☐Task 4 – Report
☐Task 5 – Case Study 2
Please indicate style of course undertaken:
☐Face to face Trainer’s name:
☐Correspondence ☐Online
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assessment and re-upload your amended case study or written tasks.
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Assessment V2.2 © AAMC Training Group A1

Risk ManagementAssessment
RISK MANAGEMENTASSESSMENT TASKS
CREDIT TRANSFER
You may be able to claim credit transfer for a unit/s of competency that you have previously
completed with AAMC Training or another RTO. If you have been awarded a record of result or
statement of attainment for any of the units detailed below then please go to the Credit
Transfer tab in your Learning Centre and follow the prompts.
This assessment relates to the following units of competency:
 BSBRSK401 Identify risk and apply risk management processes
 FNSRSK502 Assess risk
Please refer to AAMC Training’s full Recognition Policy for further details.
IMPORTANT INSTRUCTIONS
 Your answers to each of the tasks are to be typed into this document or supplied
electronically and uploaded.
 No assessment word count has been specified although you are expected to provide good
quality answers to each of the questions.
 Although some general discussion between students covering the assessment is allowed
your responses to each of the questions must be an individual effort.
 PLEASE NOTE: AAMC Training only wants to see your own work. Please do not upload
parts of the learning guide or instructions on how to complete. When this extra information
is uploaded it presents unnecessary work for the assessors and in turn delays our
assessment responses.
Task 1 – Written activities
1. Name the two categories of risk.
1 Pure risk – it is the chances of loss owing to peril or accident
2 Speculative risk – it is the chances of gain as well as chances of loss
2. Pure risk or speculative risk—which one can usually be mitigated by transferring the risk
to another party i.e. insurance company?
Among pure risk and speculative risk, pure risk can be mitigated through transferring of
the risk to another party that is the insurance company. Speculative risk generalle
involves the risk in stock market investment or gambling and therefore cannot be insured
under the tradtional market of insurance.
3. What are the four steps in the risk management process?
1. Idtifying potential risk and assessing the impact
2. Examining various courses of available action and developing the implementation plan
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Risk ManagementAssessment
3. Implementing the plan
4. Evaluating and reviewing the plan
4. In assessing credit risk from a single borrower, a lender must consider what three issues?
1. Recovery rate – in case of default, what percentage of exposures projected to b
erecovered through proceedings of bankruptcy or through any other settlement form
2. Credit exposure – in case of default the amount of outstanding obligation, if the default
takes place
3. Probability of default – likelihood that counterparty will default in payment of obligation
over the time period of obligation or over the specific time period like year. If
calculated on the horizon of 1 year time it will be called as expected frequency of
default.
5. The seven Cs analysis frame work is the most common of all expert systems. It involves
examining the borrower using the seven key principles in lending; list them.
1. Character
2. Capacity
3. Capital
4. Conditions
5. Collateral
6. Cause
7. Common sense
6. What are the more common types of security?
7. What does the PARSER analysis method consider?
PARSER is the expert system used for credit analysis in Australia. Like 5 Cs PARSER
system is used to analyse the following –
 Borrower’s personal character
 Requirement of amount and purpose
 Capacity of repayment
 Security
 Expedience or thye opportunities for future profits
 Return from loan
Assessment V2.2 © AAMC Training Group A3