NZQA registered unit standard
23132 version 3
Page 1 of 4
Title
Identify, evaluate, and manage risk in a real estate context
Level
6
Purpose
Credits
6
This unit standard is for people who intend to operate as
agents in the real estate industry.
People credited with this unit standard are able to, within a real
estate context:
–
demonstrate knowledge of identifying risks, and methods
for evaluating risks that apply within a real estate context;
and
–
demonstrate knowledge of the development of risk control
policies and procedures for a real estate business that
apply within a real estate context.
Classification
Real Estate > Real Estate Management
Available grade
Achieved
Explanatory notes
1
References
Building Act 2004;
Consumer Guarantees Act 1993;
Employment Relations Act 2000;
Fair Trading Act 1986;
Goods and Services Tax Act 1985;
Holidays Act 2003;
Human Rights Act 1993;
Overseas Investment Act 2005;
Overseas Investment Regulations 2005;
Privacy Act 1993;
Real Estate Agents Act 2008;
Residential Tenancies Act 1986;
Resource Management Act 1991;
Unit Titles Act 2010;
New Zealand and Australian Risk Management Standards;
and all subsequent amendments and replacements.
2
Definitions
Client means the person on whose behalf an agent carries out real estate agency
work and is commonly known in the industry as a vendor or seller.
Common Law is also known as case law – judgements made by courts, rather than
laws written by parliament. Judgements relating to the duties of an ‘agent’ may be
applicable to this unit standard.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23132 version 3
Page 2 of 4
Customer means a person who is a buyer or potential buyer of land or a business
and is commonly known in the industry as purchaser or buyer.
Industry requirements mean all actions must comply with relevant professional body
standards, legislation, codes of professional conduct and client care, and approved
guides. Legislation is available from http://www.legislation.govt.nz and codes of
professional conduct and client care, and approved guides are available from
http://www.reaa.govt.nz.
Approved guides mean the two approved guides developed by the Real Estate
Agents Authority covering an agency agreement and a sale and purchase
agreement. These are available from http://www.reaa.govt.nz.
Risk management is a logical and systematic process of identifying, analysing,
assessing, treating, and monitoring risks associated with any activity, function, or
process that will enable a real estate business to minimise losses and maximise
opportunities.
3
Assessment
This unit standard must be assessed on the basis of evidence of demonstrated
performance in the workplace or in simulated work situations designed to draw upon
similar performance to that required in the workplace.
Outcomes and evidence requirements
Outcome 1
Demonstrate knowledge of identifying risks, and methods for evaluating risks that apply
within a real estate context.
Range
includes but is not limited to – the real estate business’ current and prospective
operations and plans; the financial, physical and legal risks; the real estate
market in which the business operates.
Evidence requirements
1.1
Potential risks, including possible sources of risk and areas of impact, are
identified.
Range
1.2
sources of risk may include but are not limited to – commercial
and legal relations, market events, economic events, political
circumstances, human behaviour, technology processes;
areas of impact include but are not limited to – asset and resource
base, cost, staff, client and customer, contractual risks and
reputation.
Evidence is required of two different sources of risk and their
areas of impact.
Methods of evaluating risks are explained, including the available information
sources and techniques used to rank the level of identified risks by their
likelihood and consequences.
Range
likelihood includes but is not limited to – the probability and
frequency of occurrence;
consequences include but are not limited to – loss of all items
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
23132 version 3
Page 3 of 4
money, the sale, time, the salesperson.
1.3
Evaluation of risks includes an assessment of the risk levels as acceptable or
unacceptable and risks balanced against beneficial opportunities afforded by
the risk taking.
Outcome 2
Demonstrate knowledge of the development of risk control policies and procedures for a
real estate business that apply within a real estate context.
Range
risk control policies include – identified risks in terms of loss to company and
customer, client or landlord.
Evidence requirements
2.1
Risk management policy development is described consistent with the real
estate business’ goals and objectives and the strategies in place to achieve
them.
2.2
Risk policies and procedures that reduce the likelihood of, and opportunities for,
financial loss through persons or events and minimise any adverse impact are
described in accordance with business and industry requirements.
Range
2.3
policies and procedures include but are not limited to – financial
controls, fraud control planning, training;
policies and procedures exclude risk transfer;
opportunities for financial loss through persons include but are not
limited to – computer fraud, contractual risks, theft, fraud;
opportunities for financial loss through events include but are not
limited to – adverse economic events, real estate market decline,
loss of license.
Evidence is required of two different opportunities for financial
loss, one through persons and one through events, with the
recommended policy or procedure.
Strategies to transfer responsibility or burden of financial or legal risk to another
party through insurance, contract, or other means are described consistent with
industry requirements.
Range
risk transfer includes but is not limited to – professional indemnity
insurance, landlord protection insurance, fidelity fund, other
insurable risks in real estate businesses.
Replacement information
This unit standard replaced unit standard 4701.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016
NZQA registered unit standard
Planned review date
23132 version 3
Page 4 of 4
31 December 2015
Status information and last date for assessment for superseded versions
Process
Version Date
Last Date for Assessment
Registration
1
18 December 2006
31 December 2013
Review
2
12 February 2010
31 December 2013
Rollover and
Revision
3
16 August 2012
N/A
Consent and Moderation Requirements (CMR) reference
0003
This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do.
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA,
before they can report credits from assessment against unit standards or deliver courses
of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by
NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and
which are assessing against unit standards must engage with the moderation system that
applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies
to this standard are outlined in the Consent and Moderation Requirements (CMR). The
CMR also includes useful information about special requirements for organisations wishing
to develop education and training programmes, such as minimum qualifications for tutors
and assessors, and special resource requirements.
Comments on this unit standard
Please contact the ElectroTechnology Industry Training Organisation at
reviewcomments@etito.co.nz if you wish to suggest changes to the content of this unit
standard.
ElectroTechnology Industry Training Organisation
SSB Code 100401
 New Zealand Qualifications Authority 2016