You are an authorised representative with many years’ experience in the insurance and financial… 1 answer below »

Overview
The individual written task addresses and assesses key learning outcomes as
follows:
1. Describe how the various risk concepts, classifications, rules and methods of
handling risk are integrated into the overall risk management process.
2. Demonstrate a comprehensive understanding of the Australian regulatory
environment in which risk management advice and insurance products are
provided.
3. Understand the fact-finding process and how to prepare a needs analysis to
provide resulting insurance recommendations
4. Critically assess the risk management and insurance needs of individuals and
small business
5. Describe the different types of life, general and other insurance products
and their application to real world consumers and small business
Task Requirement
Students are required to read and analyse a case study for potential clients.
Based on the information outlined in the case study, students are required to identify and
discuss the risks that the clients face to achieving their stated financial goals. This discussion
should include an attempt to quantify the risk exposure and also explore the different options
for managing each risk.
Students are also required to make recommendations on how they would advise the client to
manage each of the risks they identify.
Your analysis should be presented to the client in the form of a “Discussion Paper” and should
include the following sections:
? Cover Letter
? Cover Page
? Executive Summary
? Table of Contents
? Basis for Your Advice
? Your Advice
? Other important information
Case Study Information
You are an authorised representative with many years’ experience in the insurance and
financial planning industry. You have recently attained your Master of Business (Financial
Planning) degree, which is in addition to your previous qualification, an Advanced Diploma of
Financial Services (FP). You run a very successful practice Peak Risk Solutions (PRS) in the
heart of downtown Parramatta.
Your executive assistant John has just informed you that prospective new clients Amanda and
Anthony Rossetto are ready and waiting to see you. Amanda and Anthony Rossetto seem an
interesting couple and are very specific in that they are only seeking guidance and possible
advice from you in relation to their unique risk management situation. Amanda and Anthony
Rossetto make very clear their concern is about their future wellbeing and protection and
their desire for assistance in developing a risk management plan for their family.
John has already sent Amanda and Anthony Rossetto a Client Profile (commonly referred to
as a Fact Finder or data collection instrument) to complete and your Dealer’s Financial
Services Guide (FSG). This identifies you as an authorized representative (use your student ID
as a reference for this) of licensed dealer: Peak Risk Solutions Pty Ltd (PRS), a leading provider
of risk management services including personal and general insurance, financial planning and
risk solutions. PRS has ABN: 13 000 200272 and Australian Financial Services Licence (AFSL):
215 272. Contact details for PRS include: Level 11, 272 Argyle Street, Parramatta NSW 2151.
Phone 9630 5000; toll free 1300 215272; www.prs.com.au; email insurance@prs.com.au. As
an authorised representative of PRS you are licensed to provide both insurance and financial
planning advice.
After analysing the completed Fact Finder and client file you determine the following
information. Amanda Rossetto was born in 1980 she married Anthony born in 1979 some 12
years ago. They have twins Michelle and Chella aged 10. Amanda is a recent university
graduate with a Bachelor or Applied Science. She works part time in a local retail outlet
earning $25,000 per year. Anthony is an Accountant running his own practice. He works long
hours in CBD of Sydney. He currently draws a salary from the business of $180,000 per
annum.