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Mortgage Broking Assignment: Risk Management Strategy For Financial Services


Task: Written Activity 1

For this mortgage broking assignment, you will need to perform the following task. This task will need to be completed and submitted in a professional, word processed, format, and must be 1000 words minimum in length.

1. Your task is to develop a risk management strategy for your financial service or one that you would like to work for. To do this you will need to:

a. Analyse the risk factors for financial investment and insurance products in that service
b. Determine the appropriate risk exposure management strategies
c. Communicate these strategies to relevant staff and intermediaries
d. Personally, manage the risk assessment strategies

2. This assessment is aimed at setting a strategy for portfolio managers, including what types of business will be targeted and not targeted.

3. In your strategy you will need to consider the following before you develop the risk management strategy:

a. All relevant legislation, standards, regulatory guidelines and industry sector compliance requirements. For example:
i. Insurance Act 1873
ii. Insurance contracts Act 1984
iii. Corporations Act 2001
iv. The Australian Banking Association Code of Practice
v. ASICS finance related consumer protection regulations and licensing regulations and restrictions for financial services providers
vi. Com Law – for all other Finance Related Legislation
vii. Financial Transaction Reports Act 1988 (Cwlth)
viii. Anti-Money Laundering and counter-Terrorism Financing Act 2006 (Cwlth) (AML/CTF Act)
ix. Credit Act 1985 (Cwlth) and Consumer Credit (Victoria) Act 1995
x. Cheques Act
xi. Financial Services Reform Act
xii. Superannuation Industry (Supervision) Act
xiii. Australian Prudential Regulation Authority Act 1998
xiv. Australian Securities and Investments Commission Act 2001
xv. Financial Management and Accountability Act 1997
xvi. Financial Sector (Shareholding) Act 1998
xvii. National Credit Act
xviii. Payment Systems and Netting Act 1998
xix. Australian Corporations Act 2004
xx. Australian Taxation Act

b. Organisational policy, procedures, guidelines and authorities related to risk management (you may need to determine the performance targets of the organisations capacity to assess and accept risk)

i. Performance targets may be related to:

1. Compliance with legislation and regulations
2. Consistency of the application of risk assessments
3. Compliance with organisational policies and procedures
4. Risk mitigation figures
5. Levels of risk that are undertaken by the organisation
6. Percentages of risk undertaken
7. Strategy application for risk management

c. Relevant risks, including the high and low hazard financial and legislative risk areas. (you will need to access the Australian risk management standards to complete this section)

i. Areas that are considered to be low risk will have been assessed to have:
1. Minimal risk exposure
2. Be compliant with current market conditions
3. Within the organisations accepted level of exposure

ii. As high hazard risk areas are those that may result in:
1. Breaches in compliance
2. Financial loss
3. Loss of market sector
4. Loss of other resources
5. Damage to public relations
6. A range of other high risks
d. Actuarial and financial principles and processes related to risk exposure strategies

e. Relevant industry hazards
i. Within the financial industry there are a range of different industry hazards and specific risk exposures that may be related to a range of business activities including:
1. Financial
2. Business continuity
3. External
4. Internal
5. Marketplace

f. Relevant risk exposures and an evaluation of those risks and hazards (you will need to identify your organisation’s business risk elements and control risk elements)
i. Risks that products and services may cause may include:
1. Financial
2. Inability to recoup monies spent
3. Organisational image
4. Public relations
5. Compliance issues
g. Determine compliance factors and requirements

h. Develop appropriate risk mitigation strategies
i. Establish the risk assessment criteria
4. To perform these tasks you will need to identify and collate all up-to-date information in a form that is suitable for analysis and then begin a review on this information.
5. You will need to consider the known exposure factors and evaluate the risk acceptability factors within the context of mitigating capabilities and organisational requirements.
6. Once you have done this you will need to:
a. Developrisk acceptance and rejection criteria
i. Risk acceptance and rejection criteria will be based on:
1. Level of Risk: The potential of a negative outcome occurring.
2. Magnitude: The word magnitude in relation to financial risk speaks to the size and extent of the financial risk to the organisation.

3. Volatility: The word volatility in relation to financial risk speaks to the level of uncertainty and amount of likelihood to change and by how much the risk is likely to change.
ii. It is essential to ensure that a range of strict terms and conditions are created for the risk acceptance of risk factors that are deemed to be high risk and these may include:
1. Strict risk assessment procedures
2. Obtaining legal advice
3. Parameters of risk acceptance
4. Variables that are acceptable
5. Variables that are not acceptable
6. Approvals processes
7. Information collection processes
8. Compliance procedures
9. Mapping of legislative and regulatory requirements
10. Careful design of contingency plans
11. Roles and responsibilities
12. Accountability practices
13. Percentages and variants of risk
14. Practices for diversifying risk
b. Identify high and low hazard financial and legislative risk areas
c. Develop appropriate risk mitigation strategies which may include:
i. Policies and procedures change
ii. Change management strategies
iii. Implementation of contingency plans

iv. Altering actions to make up for damages causes by risks
7. It will then be necessary to document a clear outline of the risk acceptance strategy including:
a. Purpose of the risk acceptance strategy
b. Guidelines of the strategy
c. Purpose of risk acceptance criteria
d. Management structure of the framework
e. Related policies
f. Related action plans
g. Related procedures

h. Information related to how the risk acceptance strategy will be made accountable
i. Resources
j. Templates
k. Reporting structure
l. Recording structure
m. Learning and development opportunities
n. Review and monitoring structure

8. Then you will need to get feedback on and finalised the risk acceptance criteria. If you are not in a workplace you will need to ask your trainer/assessor to give you feedback on your work.
9. To complete this assessment you will require access to the following:
a. Office equipment, technology, software and consumables
b. Relevant legislation, regulations and codes of practice
c. Relevant Australian standards relating to risk management
d. Organisational and industry risk management documentation

For this assessment you will need to use the risk management strategy you have developed and think about how you would implement it.
1. Now it is time to develop an implementation plan. Your will need to include:
a. Management of the implementation strategy
b. Monitoring methods
c. Evaluation methods
2. In this strategy you will need to plan for the implementation which means deciding on a few things. To help you do this you should develop a work breakdown structure (WBS). Your work breakdown structure should include:

a. Project management requirements
b. Assessing Project Risk
c. Resources management
d. Performance Management and tracking
e. Project financial management
f. Resource Acquisition
g. Budgets and financial management
h. Project schedule and timeline

i. Continual improvement management for the project life cycle
3. You will need to identify the resources your need for this task in the above section so make sure you identify all of them. These resources may include:
a. Human Resources: This encompasses the skills, experience and knowledge as well as the time that they put in, the business owners time will be calculated in this category as well.
b. Financial: Shares, Cash, and any other financial resources
c. Technological: these are the processes and systems or physical technological items and equipment such as specially designed software and information management systems.
d. Physical: this encompasses all tangible physical assets such as equipment, supplies, buildings and office space.
e. Reputation: this includes the perceptions of the organisation and can be measured by marketing and public relations budgets that may need to be up kept in order to maintain this.
4. Then you will need to develop procedures for staff members outlining the information and requirements for implementing the strategy. These procedures/action plans may include:

a. Financial plans
b. Promotional strategies
c. Resource requirements
d. Risk management issues and strategies
e. Specific actions, initiatives and tasks to be undertaken
f. Staffing/responsibility requirements and arrangements
g. Time lines
h. Communication strategy
5. The next step is to write a presentation for staff members. This may include:
a. Presentation book
b. PPT slides
c. Handouts
6. In a short report you will need to outline how you would monitor and evaluate the implementation if the risk management strategy in your workplace. This will include meetings and reviews and should indicate timelines for these meetings and reviews. These meetings should incorporate gathering of feedback so a feedback form should be developed now for this. Once you have completed this assessment you will need to collate all the information you have developed and submit it to your assessor. Please ensure you go through both written activity 1 and 2 again to ensure you have completed all aspects of this assessment.

Short Answers are required which is approximately 4 typed lines = 50 words, or 5 lines of handwritten text.

Your assessor will take down dot points as a minimum if you choose to answer them verbally. Answer the following questions either verbally with your assessor or in writing.

To complete this task, you are to research the risk issues, management and tolerance and options for risk management and answer the following questions.

1. What will risk acceptance and rejection criteria be based on
2. What are the eleven principles of risk management
3. What is actuarial analysis
4. What tools can be used to measure benchmarks or performance targets List eight
5. There are a large range of potential business risk elements that may impact on an organisation. List eight
6. List and describe four sources of information that you might use when collating accurate, reliable and up-to-date information.
7. Identify the relevant legislation and discuss the key pieces of it relating to one of the following:
a. Insurance contracts
b. Privacy
c. Consumer protection
d. Corporations law

8. What is “mitigating capabilities” Give one example
9. What organisational factors impact on organisational requirements within an organisation in relation to risk acceptability factors Briefly describe each
10. What organisational information needs to be assessed in order to determine the risk acceptance requirements of an organisation
11. Risk acceptability factors vary according to what
12. What are governance structures, and what might they include
13. What terms and conditions are required for the risk acceptance of high risk factors List five
14. When documenting the outline of the risk assessment strategy, what will it be necessary to include
15. What methods might you use to collect feedback
16. What is a WBS, and what is it used for
17. Briefly describe the five main categories of resources.
18. Action plans should include all of the relevant information required to set out and achieve a goal. What information should be included on an action plan

19. Outline the process for developing an effective communication plan.
20. Why is it necessary to monitor a risk acceptance strategy
21. What is the purpose of evaluating a risk assessment strategy
22. What results will need to be documented in relation to reviews and evaluations processes


The risk management strategy is the major part of financial services. The financial sector contains several factors which may cause risk in financial services. The mortgage broking assignment report is presenting here the risk management strategy developed by brokers for mitigating the risk for financial services and providing effective returns to investors. The report is divided into two written activities of which one includes the development of a risk management strategy by considering the risk factors and different applicable legislation of Australia. The report is finally presenting the personnel and staff management presentations for a detailed understanding of risk management strategies and compliance as per applicable law.

Written Activity 1:
Development of risk management strategy:

Risk management is the process and structure which helps in the effective management of potential opportunities and adverse impacts of the market. Risk management strategies are developed for effective financial services. The risk management strategy is based on different risk factors, communication of strategies to staff and intermediaries, appropriate risk exposure management strategies.

a) The risk factors which should be considered for the development of risk management strategy for financial investment are liquidity, currency fluctuation, the solvency of investors, and timely returns. As the broker, the risk factors that are involved in the insurance products are changes in the market dynamics such as reduction in the consumer insurance brands specifically for vehicle insurance, automation in insurance services, misuse of information and data, the role of underwriting agencies, changes in the role of insurance products, hyper-personalization, and change in the government policies for the protection of insurer (Garg, and Singh, 2018).

b) As the broker, there are several risk exposure management strategies that need to apply. The risk exposure management strategies are based on the concept that to mitigate the risk in investment and providing effective returns to investors. In the Australian Financial market, the performance criteria of the broker are based on the determination of appropriate risk management strategies in which the broker need to identify the appropriate criteria for acceptance or rejection of risks that are identified and evaluated, determination of performance target of the organization based on the assessing and accept risk, identification of business risk elements and control risk elements. The risk management strategies which the broker can consider to meet the objective of risk management are as follows:

Planning of trades: The broker needs to plan the trade with the objective of stop-loss and take-profit. The stop-loss and take-profit points provide two key ways in which the broker can plan with trading and selling the products to customers.

Calculation of expected return: The main objective of the investment is regular and constant returns. Hence the broker should assess and evaluate the expected return on the financial investments and insurance products.

Diversify and hedging: The broker can protect the capital of investors and provide effective returns with minimum risk with the help of diversification and hedging. Diversification is the mode in which the broker reduces the impact of market fluctuation on the investment made and protects the interest of investors from different risk factors (Wong, Hensher, and Mulley, 2019).

From the above risk exposure management strategies, the planning of trades is the appropriate risk exposure management strategy as it is working on providing effective returns to investors and mitigates the possibilities of losses.
c) After assessment of risk exposure management strategies, it is necessary to effectively communicate the strategies to staff and intermediaries. The broker cannot apply risk management strategies on their own as it is required to effectively communicate these strategies to staff and other team members. The intermediaries include clearinghouses, clearing brokers, depositories, and customers. The broker or intermediaries should consider the information available related to the risk of trading on a particular exchange or clearinghouse before executing traders in such a financial market. The broker needs to monitor these risks on regular basis.

The way of communication of risk exposure management strategies to staff and intermediaries is written documents, code of conduct, and rules and regulations of broker organization. The communication of risk exposure management strategies is necessary for effective internal control and enterprise risk management. d) As a broker, there is a need to manage the risk assessment strategies personally in which include the following steps: Management of crises: It is the personal responsibility of the broker to the management of financial services from different crises. The broker must assess the crises by using assets, investments, and resources to expose the extraordinary risks and help the client to understand and quantify the complex crises exposure for appropriate decisions by the clients (Clark, Fiaschetti, and Tufano, 2017).

Enterprise risk management: The risk assessment strategies that the broker personally adopts are ERM in which the broker assesses the credit score of the client and help the client to achieve the goal of an investment. The ERM helps the client in achieving goals of investment by effective use of opportunities.

Strategy for portfolio managers:
Portfolio managers need to construct a strategy that will include all the merits and demerits of the returns and the risk associated with the projects and the investments. In the following returns and target audience, the portfolio manager should consider different requirements of the investors such as time management and horizon of investing along with the risk aversion capacity of the investors therefore the portfolio managers should select the target audience and target business on the basis of the alignment with the portfolio investment scheme and the business that is not linked with the objective of the investment scheme will not be targeted by the portfolio managers.

Consideration while deciding risk management strategy
(A) Consideration of different statue in the risk management strategy

While creating the management strategy related to the investment and the risk the different statutory laws needs to be followed the strategy should keep the following considerations in the risk management strategy-
• The negotiable instrument risk associated with the investment and the organization should be linked with the cheese act and the negotiable instrument risk should be measured and prevented with the act. In the business, the negotiable instrument should be deposited in the relevant prescribed format and within the specified time therefore there should not be any issues with regards to the same (Elshandidy, Shrives, Bamber, and Abraham, 2018).
• Insurance is the major act of controlling the risk and managing the risk associated with the company. The company should calculate the risk and asset base of the company and control the risk according to the preview of the Insurance Act, 1873. The reinsurance agreements and different requirements of the insurance according to the internal controls of the organization must be followed. Proper hedging should be arranged for the purpose of the same.
• In-country there are different other statutes that are related to the taxation of the country, in the risk management strategy the different statue of taxation related to income tax and other indirect taxes to consider that in case of indirect taxes all the contracts should exclude the tax burden and the direct taxes should be followed that the interest and penalty burden on the business should be ignored.

On the basis of the above discussions and the different statue of the country, the risk management strategy of the organization is formed.

(B) Performance targets of the organizational capacity for risk acceptance
The different performance targets of the organization should be as follows-

• The compliance with the regulations and the legislation should be completed in the due date in case the due date is not followed then proper penalty and responsible officer should be identified.
• Time identified and proper program for the risk assessment needs to be completed in the provided timeframe (Tiller, Winship, Otlowski, and Lacaze, 2021).
• Organizational policies and internal control and policies of the organization need to be followed and completed.
• The assessed risk should be related to the mitigation factors and the accepted risk and mitigating factors identified for the purpose of management of the risk.
• The levels of risk and the expected risk of the organization should be identified and analyzed on a timely basis, the risk level that can be accepted by the organization should be clearly identified and the risk above the level of risk should not be accepted by the organization.
• Risk should be hedged properly the %of the risk that will be faced by the organization and the % of the risk that is hedged with different other options needs to be identified and risk of different products. The key managerial person should be identified and made responsible for the purpose of risk decision and analysis and the purpose of hedging activity.
• The strategy should be implemented on a requirement basis, proper team and management should be responsible and allocated for the purpose of the allocation of the responsibility with regard to implementation of the risk management strategy.

Identification of relevant risk
In the risk management strategy, the risks associated with the program can be identified and divided into different categories out of which two categories are the main categories that is low-risk areas and high-risk areas. 1. Low-risk Areas – the identification and analysis of the low-risk areas according to the Australian risk management standards are based on the minimum chances of occurrence of the risk exposures and the associated risk the low-risk areas should not relate with noncompliance of the statue and current market conditions of the organization should be in accordance with the risk areas.

2. High-risk areas – In the risk management strategy of the organization the high-risk areas include high financial and operational loss of the organization, the noncompliance of the government laws and regulations, and other risks that are associated with different other stakeholders such as loss of market, public image issues, and other several issues.

Actuarial and financial principles and processes related to risk exposure
There are different actuarial and financial principals are prescribed for the purpose of risk exposure management the actual principals emphasize the calculation of the risk and financial loss for the reason the same and the financial principles are there for the purpose of the management of the risk that is to create and make sufficient provisions with respect to the losses of the money and an arrangement for the future probable loss should be constructed.

Different Industry Hazardous
The financial industry has different industry hazardous these are as below-

1. Financial – The finance industry is all related to finance therefore there are very high chances of financial loss to the organization. Financial risk and financial losses of the industry and the company will lead to mismanagement of the organization and the industry.

2. Business continuity – It was observed in the past that during the previous cases a single event or activity will lead to business closure therefore in the finance industry proper risk management is required (Robertson, 2018).

3. External – there are different external losses and risks in the finance industry such as legal issues and statutory changes for the finance industry. External business risks are associated with the business and the industry the labor loss is associated with the same.

4. Internal – there are different internal risks such as micro and major economic factors for the purpose of the financial industry risk. Internal factors are associated internal factors will lead to losses to the public image and reputation of the organization.

5. Marketplace – In the Industry, there is a different marketplace available for the different products and for the same marketplace. Marketplace risk is very hazardous to the organization.

Relevant risk exposure and evolution



Financial risk

The financial risk of the products include different financial losses and different exposure control for the purpose of the same

Inability to recoup the money spent

The money losses for the organization cannot be recouped if it is not furnished within time and not completed in time. In the finance industry, it is difficult to recoup financial losses.

Organizational image

The financial industry is based on two major pillars that are money and reputation once the image loss in the organization cannot be repaired and completed within time. Therefore, the organization image referees major losses for the organization.

Public relations

The public relations of the organization is not measurable in quantitative terms but it can lead to a major and unrecoverable loss to the organization.

Compliance issues

In the financial industry, there are different regulators in the world and to complete these transactions and issues the different compliances need to be completed (Divya, and Viswambharan, 2019).

Risk acceptance and rejection criteria
Risk acceptance and risk rejection criteria are the basic criteria such as level of risk and level of possible losses with the risk factors, the magnitude of the losses from the risk factors, and the possibility of occurrence is required for the purpose of risk acceptance and risk rejection criteria. The market conditions and the volatility in the market are the major issues in the decision of the risk acceptance and the risk rejection criteria.

Identification of high and low hazard financial and legislative risk areas
In the financial industry, there are different financial hazards that can incur risk for the purpose of the organization's existence therefore in the financial industry different hazardous factors involve that can be divided into the high category risk factors and the low category risk factors.

The Risk mitigation strategies of the financial industry and the organization are based on the various factors and criteria such as the purpose of the risk assessment strategy, guidelines of the strategy, the different management structure of the framework, the organizational policies and procedures that should be designed and according to the completion of the project along with different areas of the risk assessment and risk analysis products. Risk acceptance criteria must be completed and organized in the familiar method and way the risk acceptance criteria the risk acceptance strategy involves the different acceptance and rejection criteria of the risk and the risk assessment and different strategies along with the risk assessment including the magnitude of the risk with the same is assessed.

Written activity 2:
1. Development of implementation plan:

For use of a risk management strategy as developed in the written activity 1 there is a need to develop an implementation plan. The implementation plan helps the ineffective use of strategy in portfolio management and mitigates the risk. The implementation plan is developed based on several steps in which includes the creation of a list of goals and objectives that wants to achieve such as excessive returns with minimum risk level, allocation of activities to team members such as research of the financial market, analysis of companies, analysis of targeting and non-targeting industry, determination of activities and task need to perform for achieving the outcomes of portfolio management, allocation of budget, roles and accountability of team members, and set-up methods of monitoring the progress of work (Pozdniakov, Kiiko, Kuzmin, and Akmova, 2018).

a) The implementation strategy should be based on the risk management strategy used for portfolio management. The management is required for implementation strategy regularly as the financial services and products have changed continuously due to the volatility of the financial market. As the broker, the management of implementation strategy should be effective and efficient based on the clear objective of risk management. Under the portfolio, risk management is a major part of financial services along with insurance products hence the implementation strategy should be developed according to the risk management strategy.
b) For a successful implementation plan, there is required to have effective monitoring methods. The monitoring is required to assess whether all rules and regulations are followed by the broker and investors. Under the monitoring methods, following monitoring is considered such as compliance monitoring, context monitoring, financial monitoring, objectives monitoring, organizational monitoring, process monitoring, etc (Kemfert, and Schmalz, 2019). In case of successful implementation of risk management strategy following monitoring methods are adopted by the broker:

  • Tracing of process
  • participatory learning and activities

c) Along with monitoring it is necessary to evaluate the results of implementation strategy timely for assessing the results as estimated and meet the objective of the strategy that is risk management of the portfolio. The evaluation technique used for the development of a successful implementation strategy is as follows:

  • Sharpe Ratios
  • Modigliani and Modigliani
  • Treynor ratio
  • Performance comparison

2. Work breakdown structure:
The work breakdown structure for the implementation strategy is as follows:

(Juliza, and Anggiat, 2019)

3. Resources:
For successfully achieving the objective of risk management strategy and implementation plan, it is necessary to acquire required resources timely and regularly. The resource that is mainly required in the project is human resources, financial resources, technologies, physical assets, and the reputation of the broker.

The human resources include qualified and experienced brokers which have complete knowledge and understanding of the financial market and have a license of providing financial services and sale of financial products under the Australian Investment Securities Commission.
The technologies include software for technical and financial analysis of different financial services and insurance products based on the returns and risk associated with the products along with comparative analysis. The physical assets include computers, hardware, office space, and the building where the broker can perform services and sell insurance products (Neumann, Robson, and Sloan, 2018).
The investors provide their funds based on the reputation of brokers hence reputation is also a major resource for financial services and effective implementation of risk management strategies.

4. Procedures for staff members:
The procedures for staff members in which outline the information and requirements for implementing the strategy refer to the action plan. The action plans include financial plans for staff members such as funds allocated to the targeted organization, hedging strategies that need to be adopted, and source of funds for the investment in the portfolio. The promotional strategy for attracting customers and investors by the broker is advertisement whether including online or offline. The promotional strategies are created based on the brand and reputation of brokers (Haydarov, 2020). The resources requirements should be clear as the entire brokers must have the license of financial services as issued by ASIC and software required for the analysis of different financial services. The staff must have a clear list of resources required and obtain feedback from team members as per changes in technologies.

The risk management issues are liquidity, currency fluctuation, unsystematic risk, and unexpected change in the price of financial services. The strategies against the risk management issues are hedging, swap contracts, forward contracts, and options.

The plan includes the timeline as proposed by the investors such as 1 year, 2 years, and long-term period based on the contract opted by the investors and products sold by brokers to investors. The staff is fully responsible for investment maid by them and product sold by them. The staffs are accountable to disclose complete information of financial products to customers and investors before investment. The communication takes place as per the hierarchy of communication and communicates with investors through telephonic communication, mail, and face-to-face communication.

Short report:
The implementation plan is effective and efficient covering each area of the broker's services. The broker's services are long-term and highly risky due to the involvement of financial transactions and the high fluctuation of the market. The implementation plan has been created considering all factors such as financial sources, resources, and communication plan. The implementation plan has been developed as per Australian rules and regulations. The implementation plan has been created as per the insurance act, consumer protection act, financial services, and rules and regulations of ASIC and the Australian stock exchange (Wang, Asian, Wood, and Wang, 2020).

Research Task and Written questions:
1. The criteria of risk acceptance and rejection are based on the level of risk that can be faced by the investors. The level of risk may be different for each investor which needs to assess for setting the criteria of risk acceptance and rejection. Hence the level of risk is a major basis of risk acceptance and rejection criteria.

2. The eleven principles of risk management are as follows:
• Creation and protection of capital
• Integrated with the governance framework
• Must be part of the decision-making
• Must address the uncertainty of the financial market
• The process of risk management must be systematic and structured
• The risk management must be based on the best available information
• The risk management must be in consideration with the internal and external operating environment
• Consider human and cultural factors
• The risk management must be transparent for internal and external stakeholders
• The risk management must be dynamic and responsive to changes
• The risk management must be focused on continual improvement

3. The actuarial analysis refers to the statistical methods adopted for the management of financial uncertainty by calculating and forecasting future events. The actuarial analysis is used by financial brokers, insurance companies, banks, and different government agencies (Espinosa, and Zarruk, 2021).

4. The tools which can be used to measure benchmarks or performance targets are as follows:
• 360-degree feedback
• Performance management framework
• Recognition and reward program
• Plans for personal development
• MBO (Management by objectives)
• Appraisals of performance
• Questionnaire
• Evaluation

5. The potential business risk elements that may impact an organization are as follows:
• Economic risk
• Compliance risk
• Fraud and security risk
• Reputation risk
• Financial risk
• Operational risk
• Competition risk
• Environmental risk

6. The sources of information that may be used while collating accurate, reliable, and up-to-date information are as follows:
• Primary sources
• Secondary sources
• Tertiary sources
• Legislative primary and secondary sources

7. Consumer protection legislation in Australia is Australian Consumer Law which is schedule 2 to the competition and consumer act 2010. The consumer guarantees refer to the Australian Consumer Law which sets for the protection of the consumer in Australia.

8. The mitigating capabilities refer to the capability of reducing risk and unsystematic loss to investors by adopting hedging and diversification strategies. For example, the planning and diversification strategy is used by the broker for mitigating the financial risk of investments (Albertzeth, Pujawan, Hilletofth, and Tjahjono, 2020).

9. The organizational factors that impact organizational requirements within the organization about risk acceptability factors are as follows:

  • Size of organization: The organization's size such as large size, medium-size, and small size organization has different risk acceptability factors.
  • Leadership: The leadership and management of the organization are a major part of the organization about risk acceptability factors.

10. The information related to the organization that needs to be assessed to determine the risk acceptance requirements of an organization is size, culture, management, customers, and competition, team, and project capabilities.

11. The risk acceptability factors vary according to the values of the group, belief of management, norms of society, values, code of conduct, political and economic situations, and past experiences.

12. The governance structure refers to the framework of the management of an organization by following rules, regulations, procedures, and defining the role and responsibilities for an effective decision-making process. The governance structure includes planning, controlling, a system of incentive, information, and selection.

13. The terms and conditions required for the risk acceptance of high-risk factors are as follows:

  • The return on investment is high as compared to the risk arising from high-risk factors.
  • The objective of the individual is to earn high returns in place of protection of funds.
  • The high-risk factors are not under-control of investors.
  • Cost performance
  • Tolerable and provides high returns.

14. When documenting the outline of the risk assessment strategy it will be necessary to include as follows:

  • Level of risk involved
  • Law and legislation applicable
  • Requirement of management systems.

15. The methods that might be used to collect feedback are as follows:
• Meeting
• Questionnaire
• Interview
• Survey
• Suggestion board

16. The WBS refers to work based structure that defines the flow of activities to be performed in the project. Under the WBS, the project is defined in the small activities and tasks such as the deliverable-oriented breakdown in the smaller components. The WBS is used for completing the project’s objective by completing the smaller components of the project and presenting the project in a systematic structure.

17. The five main categories of resources are as follows:
• Natural resources
• Human resources
• Economical resources
• Speculative resources
• Data resources

18. The action plans should include all of the relevant information required to set out and achieve a goal and the information that is required to include in the action plan as follows:

• The objective of the project
• Time of the project
• Internal and external stakeholders
• Role and responsibilities of management and operational staff
• The budget allocated to project
• The risk involved in the project

19. The process for developing an effective communication plan is as follows:
• Identification of the objective and purpose of communication
• Identification of the audience with whom the communication is conducted
• Planning and designing the message to be communicated
• Consider the source of information
• Process and plan for constraints and obstacles
• Assess the way of communication and methods
• Timeline and source of media of communication
• creation of action plan

20. The risk acceptance strategy is needed to monitor as the risk acceptance strategy is developed based on the factors involved in the financial services and products to be sold along with the market changes. The risk acceptance level may be changed due to change in the individual behavior and return requirements. Hence the risk acceptance strategy is needed to review and update as per changes that take place and meet the level of risk of investors. 21. The purpose of the evaluation of risk assessment strategy is evaluation of hazards and removal of hazards timely. The risk assessment strategy involves the assessment of risk and level of risk based on the economic, social, and financial factors of the financial services. The risk assessment strategy is required to update timely based on changes in the above-mentioned factors and changes in the expectation of investors. The purpose of the evaluation of risk assessment strategy is to assess the effectiveness of strategy as per the nature of the organization.

22. The results that will need to be documented about reviews and evaluations processes are as follows:
• The report of review and evaluations processes
• The methods to be adopted for review and evaluation
• The steps involved in the review and evaluation
• Written planning
• Work-based structure
• summary of the evaluation process
• Code of conduct need to be followed

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Clark, G.L., Fiaschetti, M. and Tufano, P., 2017. Advice in Defined Contribution Plans. Financial Decision Making and Retirement Security in an Aging World, p.96.

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, 35. Juliza, H. and Anggiat, H.O.S., 2019, May. Identify The Operational Risk Of The Port By The Risk Breakdown Structure (RBS) Method. In IOP Conference Series: Materials Science and Engineering (Vol. 505, No. 1, p. 012012). IOP Publishing.

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Neumann, J., Robson, A. and Sloan, D., 2018. Monitoring and evaluation of strategic change programme implementation—Lessons from a case analysis. Evaluation and program planning, 66, pp.120-132. Pozdniakov, S., Kiiko, V., Kuzmin, O. and Akmova, L.M., 2018. Technologies of development and implementation of systems of internal managerial information. Wydawnictwo i Drukarnia NOVA SANDEC, (2), pp.177-189. 20and%20implementation%20of%20systems%20of%20internal%20managerial%20information% 20%D0%B7%D0%B0%D1%85.pdf

Robertson, V.H., 2018. Consumer Welfare in Financial Services: A View from EU Competition Law. Yearbook of Antitrust and Regulatory Studies (YARS), 11(17), pp.29-52. Tiller, J., Winship, I., Otlowski, M.F. and Lacaze, P.A., 2021. Monitoring the genetic testing and life insurance moratorium in Australia: a national research project. Medical Journal of Australia, 214(4), pp.157-159.

Wang, M., Asian, S., Wood, L.C. and Wang, B., 2020. Logistics innovation capability and its impacts on the supply chain risks in the Industry 4.0 era. Modern Supply Chain Research and Applications.

Wong, Y.Z., Hensher, D.A. and Mulley, C., 2019. Mode-agnostic mobility contracts: identifying broker/aggregator models for delivering mobility as a service (MaaS).


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