ACCOUNTS AND BUDGET SERVICE

Level-IV
Based On Version January 2012version OS

Unit of Competence: Apply Principles of Professional Practice

to Work in the Financial Services Industry
Module Title: Applying Principles of Professional Practice to
Work in the Financial Services Industry
LG Code: BUF ACB4 M07 Lo1(1-7)(4-14)
TTLM Code: BUF ACB4 M04 0320TTLM 0320v1

December 2021

Dire Dawa, Ethiopia

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 LO1: Identifying the scope, sectors and responsibilities of
the industry
LO1: Identifying the scope, sectors and responsibilities of the industry

1.1. Identifying external forces impacting on the financial

Information Sheet-1 services industry and considered in carrying out activities

A financial system is a set of institutions, such as banks, insurance companies and

stock exchanges that permit the exchange of funds.

Financial systems exist on firm, regional and global levels. Borrowers, lenders and
investors exchange current funds to finance projects, either for consumption or
productive investments and to pursue a return on their financial assets. The financial
system also includes sets of rules and practices that borrowers and lenders use to
decide which projects get financed, who finances projects and terms of financial deals.

A financial system is the set of global, regional or firm specific institutions and practices
used to facilitate the exchange of funds.

Financial systems can be organized using market principles, central planning or a

hybrid of both.

Institutions with in a financial system include everything from banks to stock exchanges
and government treasuries.

The financial system can be organized using markets, central planning or some mix of
both.
Financial markets involve borrowers, lenders and investors negotiating loans and other
transactions. In these markets the economic good traded on both sides is usually some
form of money such as cash, claims on future money (credit), or claims on the future
income potential or value of real assets (equity). These also include derivative
instruments.

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1.2. Identifying the main sectors of the financial services industry and the
interrelationship between sectors in carrying out activities
There are three major types of financial institutions;

1. Depository financial institutions; deposit taking institutions that accept and

manage deposit and make loans including banks, building societies, credit
unions, trust companies and mortgage loan companies.
2. Contractual institutions; insurance companies and pension funds.
3. Investment institutions; investment banks. There are many different types of
financial institutions exist in the financial market for the fund flows.

Depository financial institutions;

Depository financial institutions are the financial institutions that are allowed to accept
monetary deposits from the consumers legally. These include commercial banks, saving
banks, credit unions and the saving and loan association.

i. Commercial banks; accept the deposits from the public and offer security to
their customers
ii. Saving banks; perform the function of accepting the savings from the
individuals and lending to the other consumers
iii. Credit unions; are the associations which are created, owned and also
operated by the participants who are voluntarily associated for the purpose of
saving their money and then lending it members of their union only.
iv. Saving and loan associations; collect the funds many of the small savers and
then lend them to home buyers or other types of borrowers. They specialize
in proving the help to people in getting residential mortgages.

Non-depository financial institutions

Non-depository financial institutions are the financial institutions that serve as the
intermediary between the savers and the borrowers but they do not accept the time
deposits. Non-depository financial institutions perform their activities of lending to the
public either by the way of selling securities or through the insurance policies.

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Non-depository financial institutions include insurance companies, finance companies,
pension funds and mutual funds.

1.3. Identifying the roles and responsibilities of other participants in the

financial services industry in carrying out activities
The financial sector plays an important role in the functioning of the economy
through intermediation.
The financial sector its between savers and borrowers; it takes funds from savers
and lends them to those who wish to borrow, be they households, businesses or
governments.
The key participants in financial transactions are individuals, businesses and
governments. These parties participate both as suppliers and demanders of funds.

Self-check.-01

Define the following question

1. Explain the impact of financial institutions on industry services
2. Write and explain details three major types of financial institutions;
3. What is industry?

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LO2:.Identifying and applying financial services industry guidelines,
procedures and Legislation

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LO2:.Identifying and applying financial services industry guidelines, procedures
and Legislation
2.1. Collecting information analyzed and
Information Sheet-2 effectively applied to the job role

Job analysis is the process of studying and collecting information relating to the
operations and responsibilities of a specific job. The information thus collected is
analyzed and the facts about the nature of job working condition and qualities in an
employee can be easily known. Job analysis defines the jobs within the organization
and the behaviors necessary to perform these jobs.
Job analysis is the process of studying and collecting information relating to the
operation and responsibilities of a specific job.
2.2. Clarifying own work practice regularly
Recurrent moments of clarification;
To achieve greater insight into what we are doing, what our intension are and the
choices we have to make, we distinguish between the following moments in the process
before and after action.
Moments of clarification;

i. Clarifying the situation

ii. Determining the goal
iii. Choosing the means or methods for intervention
iv. Looking back evaluating
v. Clarifying our own involvement

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Most often we do not start with the clarification or the situation but somewherein-
between. When we realize that we are working on a goal not connected with the
situation. This makes us re-think what we are aiming at and about the situation or we
start looking back and wondering about our own involvement. Doing this seriously, we
get to know more about the situation we are dealing with. The consequence is a new
starting situation. This gives us the opportunity to determine a new goal and to choose
our means. In other words the way to work towards it. Often we will realize that in
determining goals or choosing means we have to explore the situation more closely.
Thus new questions may arise and we should not hesitate to return to the moment.
The more we become conscious of the different moments we are dealing with we will
ask ourselves more questions and become more aware of the contradictions we meet
so often in the situation.
2.3. Practicing an ethical approach to workplace

Ethics is a core competency that many employers seek in existing employees and in
new hires. Filling your team with people who have a naturally strong code of ethics, and
reinforcing this with clearly defined work behaviors, helps build a stronger team and also
increases productivity and creates a happier workforce.

Self-check-2.
Definition:-
1. What is ethics?
2. What is the advantage of information for applying on financial industry?

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LO3: Identifying sustainability issues for the financial services
industry

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LO3: Identifying sustainability issues for the financial services
industry

3.1. obtaining Information on sustainability policies,

Information Sheet-3

The main attribute of sustainable policy are to strengthening social capacity and human
development programs without affecting the future ability of developing and availing
resources. Policy consideration on socio-economic development, poverty elevation.
Natural resource dependence, resource availability, nature of capital and institutional
attributes determines policy sustainability.
A sustainable policy designates the integration of goals and activities of a policy with
sustainable development.

3.1. identifying environmental sustainability

Government has a range of environmental policies to minimize the impact of

government operations on the environment. Environmental sustainability policy, which
also includes accountabilities and actions to drive performance.

The environmental management issues covered in the policy includes;

 Energy use
 Greenhouse gas emissions and ozone depleting substances
 Suppliers, products and material use
 Office waste, building waste and resource recovery
 Potable water use and waste water.
3.2 Working planning incorporates and supports triple bottom line principles

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Environmental planning is the process of facilitating decision making to carry out land
development with the consideration given to the natural environment, social, political
economic and governance factors and provides a holistic frame work to achieve
sustainable outcomes.

A major goal of environmental planning is to create sustainable communities, which aim

to conserve and protect undeveloped land. Some of the main elements of present day
environmental planning are;

 Social and economic development

 Urban development
 Regional development
 Natural resource management and integrated land use
 Infrastructure system
 Governance frameworks

Self-check-3

Definition.

1. What The main attribute of sustainable policy?

2. List and explain A major goal of environmental planning is to create sustainable
communities,

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LO4: Managing information
LO4: Managing information

4.1. Documenting and reporting that could impact on work

Information Sheet-4 effectiveness

The way an organization executes internal and external document work flows has a
significant impact on the productivity of its employees/ if handled in efficiently, simple
tasks like creating documents, sharing and signing them and collaborating with clients
and colleagues can become incredibly challenging and costly.
A recent report states that document challenges are robbing organizations of 21.3% of
overall productivity, which they then breakdown to an individual productivity cost of
employee.Example; 48% have emailed the wrong version of a file to a boss, client or
co-worker an average of 6.9 hours/week are spent collecting, consolidating and

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deciphering feedback on documents. 81% have found themselves working on the wrong
version of a file.
4.2. .Analyzing documents, reports, data and numerical calculations
With the current obsession over big data analysts have produced a lot of fancy tools
and techniques available to large organizations.
There are a handful of basic data analysis tools that most organizations are not using to
their detriment.
Fundamental data analysis efforts are;
1. Mean
The arithmetic mean, more commonly known as the average is the sum of a list of
numbers divided by the number of items on the list.
The mean is useful in determining the overall trend of a data set or providing a rapid
snapshot of your data. Another advantage of the mean is that it is very easy and quick
to calculate.
2. Standard deviation
The standard deviation often represented with the Greek letter sigma, is the measure of
a spread of data around the mean. A high standard deviation signifies that data is
spread more widely from the mean. Where a low standard deviation signals that more
data align with the mean. In portfolio of data analysis methods, the standard deviation is
useful for quickly determining dispersion of data points.
3. Regression
Regression models the relationship between dependent and explanatory variables
which are usually charted on a scatter plot. The regression line also designates whether
those relationships are strong or weak.
4. Sample size determination
When measuring a large data set or population, like a work force you don’t always need
to collect information from every member of that population-a sample does the job just
as well. The trick is to determine the right side for a sample to be accurate. Using
proportion and standard deviation methods, you are able to accurately determine the
right sample size you need to make your data collection statistically significant.
5. Hypothesis testing

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Also commonly called t testing, assess if a certain premise is actually true for your data
set or population. In data analysis and statistics you consider the result of a hypothesis
test statistically significant if the results couldn’t have happened by random chance.
Hypothesis tests are used in everything from science and research to business and
economics.
4.3 Information should be presented in a format appropriate for the audience
Information Gathering;in this important step, the problems, objectives, and resources
needed are outlined. Participating stakeholders such as clients, developers,
consultants, and end-users come together and engage in brainstorming. If the software
is not brand new there will be less information and data gathering and more focus on
improvements.

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Self-check-4.

Definition.

1. How to manage information?

2. List and define Fundamental data analysis efforts.
3. Explain effective of information.

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LO5: Participating in and facilitate work team activities

LO5: Participating in and facilitate work team activities

5.1. Providing feedback to team members

Information Sheet-5

Team effectiveness- the capacity a team has to accomplish the goals or objectives
administered by an authorized personnel or the organization.
a team is a collection of individuals who are interdependent in their tasks, share
responsibility for outcomes, and view themselves as a unit embedded in an institutional
or organizational system which operates within the establish boundaries of that
systems.
Feedback occurs when out puts of a system are routed back us inputs as part of a chain
of cause-and-effect that forms a circuit or loop. The system can then be said to feed
back into itself. The notion of cause-and effect has to be handled carefully when applied
to carefully when applied to feed back;

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Simple causal reasoning about a feedback system is difficult because the first system
influences the second and second system influences the first, leading to a circular
argument. This make reasoning based up on cause and effect tricky, andit is necessary
to analyze the system as a whole.

5.2. Encouraging team members to participate in and take responsibility for

team activities
Powerful ways to keep the members of your team motivated and giving their very best
on the job;
1. Pay your people what they are worth
2. Provide them with a pleasant place to work
3. Offer opportunities for self-development
4. Foster collaboration within the team
5. Encourage happiness
6. Don’t punish failure
7. Set clear goals
5.3. Giving the team support to identify and resolve problems
The lack of initiative on display for solving even the easiest of problems in the work
place is frustrating for many mangers; unfortunately these same frustrated mangers are
often key contributors to their team’s unwillingness to jump in andsolveproblems.
Reasons your team won’t step up to problem-solving, while you may expect your
teams to set up to problem solving, there could be reasons that it does not happen.
Micro management;
Micro managing your team, then you is defeating yourself and your workers. You have trained
everyone to wait for your directions for even the simplest of tasks. Most micro managing
managers are unaware of their style and its adverse impact. Ask someone for some feedback
on your management style to see if you fit the micro manger mold.

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No mistakes allowed;perhaps you cannot stand mistakes. You encourage experimentation and
then metaphorically bite people’s heads off if they make a mistake. Nothing stifles group
initiative more effectively than contradictory behaviors from the boss.
No team development;
You can’t expect team efforts if you have not actively fostered a culture that encourages
spontaneous team development and collaboration for problem solving.
Create small team problem-solving victories
Jump-start group problem –solving by creating small victories. For teams unfamiliar with
working together, select smaller initiatives that merit group considerations and ultimate
consensus. Resist your temptation to offer the solution and instead, serve as a facilitator for
group consideration of the issue. As the group gains experience collaborating, serve up some of
the stickier and larger work place challenges. Success breeds success.
Get out of the way
Give the team autonomy for implementing their ideas. Nothing creates accountability like
owning both the solution and the implementation of the solution. Your willingness to let a group
carry a problem from identification to resolution reinforces your confidence and trust in their
work. People and teams respond positively to trust from the boss.

Self-check-5
Define.
1. What is feedback?
2. Write the advantage and disadvantage of feedback.

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LO 6: Participating in and facilitate work team activities

LO6: Participating in and facilitate work team activities

6.1. Determining Tasks to be done and relevant

Information Sheet-6
conditions

The way’s to determine task completion will vary based on the mode of evaluation and
whether the data is collected from actual use or simulated use.
Task completion from actual use;
The actual use you can determine when users completed their goals from a record of
things they have done or self –reported data on what they have recalled doing.
Recording or observing actual behavior;
Actions users take-a purchase made traceable record and are ideal for measuring
effectiveness.
6.2. Planning work is for a given period managing resources

Resources are people, equipment, place, money or anything else that you need in order
to do all of the activities that you planned for every activity in your activity list needs to
have resources assigned to it. Before you can assign resources to your project, you
need to know their availability.
Resource availability includes information about what resources you can use on your
project, when they are available to you and the conditions of their availability.

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Estimating the resources
The goal of activity resource estimating is to assign resources to each activity in the
activity list. There are tools and techniques for estimating activity resources.
Expert judgment;
Bringing in experts who have done this sort of work before and getting their opinion on
what resources are needed.
6.3. Changing in technology and work organization should be adapted to in a timely
manner
Technology growing in the work place requires appropriate guidelines for employee
usage and responsibilities.
Work place environments are vastly shifting the way professionals communicate with
others. As technology becomes an integral portion of workplace, employees, embosses
and co-workers are all affected by this changing communication. Workers must learn
and keep up with digital communication to make sure they are updated on company
announcements and concerns. The work force used to heavily rely on vocal
communication as a means of dissenting information.
A technology manual will also help workers understand how they are to utilize
technology within the workplace.

Self-check.-6
Definition.

1. What is estimating of resource?

2. What is the important of work team?
3. What is the advantage of work team?

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LO 7: Developing and maintain personal competency

Information Sheet-
7.1. Identifying professional development needs and goals
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Should be setting goals that revolve around your development in the work place
allowing progressing professionally and if you are a manager supporting the
development of your team.
Great goal setting means you can take steps towards improving any aspect of work
that’s relevant and specific to you, building on professional knowledge, skills and
effective working practices.
Goal setting may be supported at the company level; depending on the current priorities
and your HR maturity level but it also something you can take control of yourself.
Whilst your goals should be tailored to your personal aims and needs.
7.2. Clarifying competency, authorization and licensing requirements

Licensed or regulated occupations regulatory requirements industry approvals

nominated industry authority arrangements.
Industry approvals
Some qualifications or units of competency have approval restrictions placed on them
through an arrangement between a licensing or industry authority that regulates working
conditions in that industry.
Clarify that the requirement that permits comply with applicable that land owners that a
lease is required because the permit grants an interest.
7.3. Professional development opportunities that reflect needs and goals are sought
Professional development goals are intended to increase one’s knowledge or skill set.
These types of goals focus on plans for learning or enhancing a person’s ability. An
organizations commitment to employee development helps increases personal job
satisfaction and employee motivation.
Organizational goals;

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Annually, organizations create strategic goals for themselves that target key objectives
they will strive to achieve over the course of the upcoming year. These goals are tied to
the company’s mission and vision statements. These goals help management and
employees know what is important and what direction the organization is headed. It also
helps ensure that each employee within the organization knows how their job fits in with
the big picture.
Most organizations also create goals for each individual employee. These individual
goals are designed to help the organization as a whole meet their strategic goals. It is
critical to the business success that the organizational goals align with the employees
goals. It is easier to reach the organizations goals if all the employees’ goals are linked
and in sync with what the organization wants to acieve.

Self-Check -7 Written Test

Definition.
1. How to achieve the organizational goal?
2. How to develop personal competence?
3. What is the advantage of personal competence?

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