Complex Features Of Client Situations And Risk Management Homework Answer

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Question :


The following questions may be answered verbally with your assessor or you may write down your answers. Please discuss this with your assessor before you commence this task to ascertain if you are to complete this section. Your assessor can be contacted via their email address provided to you on enrolment or via [email protected]

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 complex features of client situations, risk issues, management and tolerance, ethics and loan structures and options. You will also need to analyse and prioritise the available options to clients, complaint resolution process and information provided to clients as part of your research. 

1. Identity and briefly explain the following types of complex features that you will need to discuss, review and clarify if they relate to a client situation and needs: 

a. Commercial loans. 

b. Chattel leases. 

C. Native title rights. 

d. Heritage issues. 

e. Contaminated sites or properties near noxious industries. 

2. What information do you need to identify when you are exploring and discussing  with client's risk issues and tolerance? 

3. Why is it important to ensure that discussions with clients are conducted comprehensively and ethically? 

4. Briefly explain how to use a risk profile to assess the impact of risks to the client or organisation. 

5. What methods could you use to engage in further questioning and information gathering if you have not gathered sufficient information to complete an adequate risk profile? Discuss at least 2. 

6. What are the areas of the client situation that you may need to analyse to determine their opportunities and constraints? 

7. Discuss 3 of the research methods you could use to research loan structures or options. 

8. What are the 4 areas that you need to analyse complex financial issues in terms of? 

Briefly describe each. 

9. Identify and define the information you will need to include and compare in your  model to analyse and prioritise the available options. 

10. What will you need to do with the available options once you have the outcomes of  your modelling? 

11. What are the requirements that you will need to check to ensure the preliminary  options comply with? 

12. How can you assess the ability of the preliminary options to successfully meet client  needs? 

13. What types of explanatory material could you develop or obtain to help clients  review the selected broking options? 

14. Briefly discuss why you might consider a referral to each of the following in a  broking situation: 

a. Accountant. 

b. Financial advisor. 

c. Lawyer. 

15. List 3 examples of risk management strategy recommendations you may  incorporate into your materials for the client. 

16. Why is it important to include a brief description of the anticipated fees and charges  in your client materials? 

17/Briefly discuss the types of information that you would include on complaints  resolution, both internal and external, in the client materials. 

18. What information should you include in your documented broking information and  loan structures, to be presented to clients? 

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Answer :

Research Task

Question 1

Commercial loan
It is used by the business organization to fund the specific project with higher requirement of fund.
Chattel Mortgage
It is the funding source with lower interest rate and also provide the flexible loan repayment schedule with tax credit.
Native title right
It is governed by Native title act 1993 to land the water as per the traditional law.
Heritage Issue
Urban development creating the issue such as climate change , natural disaster which also affecting the business all around the world.
Contaminated sites
It means that those place or land that contain the chemical that can led to harm the human health. It can affect the business due to local issue.

Question 2

Risk tolerance

Risk profile should be used to understand the appropriate risk , and also required to understand the what action has been taken by the client to control such risk. What exposure can be incurred due to such risk so that it can be reduce to the minimum effect.

Question 3

Comprehensively is used during the conversation with client because it help to understand the all scenario in simple form, also provide the protection from the risk , third party theft ,ethics provide the appropriate culture to generate the trust with client.

Question 4

Risk profile help to understand the willingness and interest of the individual toward the task. It also provide the appropriate allocation of the assets and liability and implied in the higher risky situation to reduce the risk (Khodjamkulov,Makhmudov, & Shofkorov, 2020).

Question 5

Assessing the risk potential
For the risk profile, risk should be assessed from each aspect such as how the task can be done, whether it is possible to use the existing resources or require to invest in new resources.
Finding the control and risk reduction plan
Risk exposure should b control by establishing the controlling process such as monitoring process for each task, quality check at each stage.

Question 6

Cost structure
Client palace should be visited to understand the cost structure. If there is any chance that unwanted business activity can be removed without affecting the value. then it should be removed immediately.
Business planning
New business plan should be develop to remove the all the barrier that restrict to grow in the market (NGUYEN, & NGUYEN, 2020).

Question 7

Explanatory research
It is the strategies that help to provide the innovative ideas. It is suited to use at the early stage of business. It can provide the various new way of funding.
Descriptive research
It provide the online survey to generate the information for the qualitative research. It can be used to identify the all the funding sources.
Casual research
It is the well predesigned research that is used in systematic way to obtain the loan with minimum interest rate.

Question 8 

4 area of financial issue:-

Negative cash flow
Cash flow should be observe to identify the negative cash flow.
Lower profit
If the expenditure is higher than profit will be lower and will led to cause the payment default for liability.
Lack of liquidity management
If the cash has not been managed appropriately then it will led to reduce the cash at lower stage (Varma, Agarwalla, 2020).
Credit policy
Credit policy of the business should also been evaluated to reduce the financial issue.

Question 9

To analysis the available option following information should be consider:-

  • How much fund is require to invest.
  • How the financial benefit will be taken from the given option.
  • How will be the annual maintenance charges will be incurred.
  • what be the life cycle of the given project
  • Cash flow of each year during the entire life cycle.

Question 10

After having the outcome of the modeling , only those option suggest to adopt which is having the higher outcome for the value addition.

Question 11

Construction sit require the major closure for the reconstruction that also require the major road for the facility. hence preliminary option should be mange accordingly to provide the better quality service delivery (Bauer, Bucaro, & Estep,2020).

Question 12

Preliminary option should be assed in optimum manner to provide the better solution to the problem. If it can be sue in efficient manner before developing the service for the client then it will le to provide the high quality service.

Question 13

Selected broking option could be selected based on the policy and procedure, framework, internal control used by broking company, and cost alignment to the  services given to the client.

Question 14

They provide the accountability for the each kind of financial transaction that can led to make the appropriate economic decesion.
Financial advisor
They make the advice to put the fund at minimum cost with high return.
They provide the information related to the law and regulation and make the brokerage situation easy.

Question 15

For the risk management  strategies following recommendation ca be given:-

  • If the risk is lower and does not incurred cost then  it should be avoided.
  • If the cost is incurred then it should be reduce.
  • Problem can be transfer to third party.
  • Planning for the eliminating such risk should be done.

Question 16

Client material include all the documental and information provided by the client to the consultant. While returning it to the client again description of fees should also been mansion here to classify the cost for the work done by the consultant for client (Samimi, 2020).

Question 17

  • Focus on the material information related to the specific matter.
  • Communication should be made to the relevant authority.
  • Issue should be define in simple manner.

Question 18

  • Interest rate for the loan provided should be included.
  • Brokerage rate should be included.
  • other comparable option should  also be given to the client.
  • Repayment schedule for the loan amount.
  • Brokerage payment way should also be made (Sabatino,, De Rosa, Di Salvo, & Indolfi, 2020).