Assessor Resource

PSPPCM010
Manage procurement risk

Assessment tool

Version 1.0
Issue Date: March 2024


This unit describes the skills required to manage risks associated with all stages of procurement. It includes assessing risk, and preparing, implementing and reviewing a risk management plan.

This unit applies to those working as public sector staff in roles that involve managing procurement risks.

The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.

Those undertaking this unit would work autonomously while performing complex tasks, in familiar contexts.

No licensing, legislative or certification requirements apply to unit at the time of publication.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)



Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section.

1. Assess risk

1.1 Identify legislation, policies, business processes and resources impacting the contract.

1.2 Identify procurement outcomes and internal inputs required.

1.3 Identify and confirm critical success factors required.

1.4 Identify non trivial procurement risks.

1.5 Identify potential probity risks.

1.6 Analyse causes of risk and their potential impact.

1.7 Determine likelihood and consequences of risks and develop risk assessments.

2. Prepare risk management plan

2.1 Develop preliminary risk management plan to address risks identified in planning phase.

2.2 Identify acceptable risks and those requiring treatment.

2.3 Design treatments to reduce risks to an acceptable level.

2.4 Develop plans for implementing new treatments, additional risk controls or modifications to existing controls.

2.5 Monitor risk level at key points during procurement process and, review and adjust risk management plan to cover procurement activity risks not already identified.

3. Implement and review risk management plan

3.1 Implement risk controls and treatments according to the treatment plan.

3.2 Implement risk management plan, monitor and revise to include potential or emerging risks during the life of the procurement activity.

3.3 Improve risk treatments and controls using review results.

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.

writing risk management plans using templates or a recognised risk management methodology

interpreting complex, formal documents

making verbal and written recommendations about the management of procurement and contracting risks

analysing risks associated with procurement and contract

managing and updating the risk management plan

learning skills to keep up-to-date with relevant procurement legislation, policies and procedures

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.

Commonwealth, state or territory, and local government legislation, policies, practices and guidelines relating to contract risk management

organisational procurement policies, practices and approval processes

risk management procedures

probity principles and issues, particularly as they relate to probity risks

codes of conduct, codes of practice and standards of individual behaviour relating to the procurement process

risks associated with financial and accounting issues relevant to procurement and contract management

supplier issues and supply chain management in the context of procurement risk management

aspects of law of contracts, trade practices law and commercial law relevant to risk management relating to complex procurement

equal employment opportunity relevant to procurement and contract management

environmental, sustainability and corporate social responsibility principles relevant to procurement and contract management

This unit contains no specific industry-mandated assessment conditions. Guidance on suggested and recommended conditions and methods can be found in the Implementation Guide.

Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENTS

PERFORMANCE CRITERIA

Elements describe the essential outcomes

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section.

1. Assess risk

1.1 Identify legislation, policies, business processes and resources impacting the contract.

1.2 Identify procurement outcomes and internal inputs required.

1.3 Identify and confirm critical success factors required.

1.4 Identify non trivial procurement risks.

1.5 Identify potential probity risks.

1.6 Analyse causes of risk and their potential impact.

1.7 Determine likelihood and consequences of risks and develop risk assessments.

2. Prepare risk management plan

2.1 Develop preliminary risk management plan to address risks identified in planning phase.

2.2 Identify acceptable risks and those requiring treatment.

2.3 Design treatments to reduce risks to an acceptable level.

2.4 Develop plans for implementing new treatments, additional risk controls or modifications to existing controls.

2.5 Monitor risk level at key points during procurement process and, review and adjust risk management plan to cover procurement activity risks not already identified.

3. Implement and review risk management plan

3.1 Implement risk controls and treatments according to the treatment plan.

3.2 Implement risk management plan, monitor and revise to include potential or emerging risks during the life of the procurement activity.

3.3 Improve risk treatments and controls using review results.

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.

writing risk management plans using templates or a recognised risk management methodology

interpreting complex, formal documents

making verbal and written recommendations about the management of procurement and contracting risks

analysing risks associated with procurement and contract

managing and updating the risk management plan

learning skills to keep up-to-date with relevant procurement legislation, policies and procedures

Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.

Commonwealth, state or territory, and local government legislation, policies, practices and guidelines relating to contract risk management

organisational procurement policies, practices and approval processes

risk management procedures

probity principles and issues, particularly as they relate to probity risks

codes of conduct, codes of practice and standards of individual behaviour relating to the procurement process

risks associated with financial and accounting issues relevant to procurement and contract management

supplier issues and supply chain management in the context of procurement risk management

aspects of law of contracts, trade practices law and commercial law relevant to risk management relating to complex procurement

equal employment opportunity relevant to procurement and contract management

environmental, sustainability and corporate social responsibility principles relevant to procurement and contract management

This unit contains no specific industry-mandated assessment conditions. Guidance on suggested and recommended conditions and methods can be found in the Implementation Guide.

Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Identify legislation, policies, business processes and resources impacting the contract. 
Identify procurement outcomes and internal inputs required. 
Identify and confirm critical success factors required. 
Identify non trivial procurement risks. 
Identify potential probity risks. 
Analyse causes of risk and their potential impact. 
Determine likelihood and consequences of risks and develop risk assessments. 
Develop preliminary risk management plan to address risks identified in planning phase. 
Identify acceptable risks and those requiring treatment. 
Design treatments to reduce risks to an acceptable level. 
Develop plans for implementing new treatments, additional risk controls or modifications to existing controls. 
Monitor risk level at key points during procurement process and, review and adjust risk management plan to cover procurement activity risks not already identified. 
Implement risk controls and treatments according to the treatment plan. 
Implement risk management plan, monitor and revise to include potential or emerging risks during the life of the procurement activity. 
Improve risk treatments and controls using review results. 
Identify legislation, policies, business processes and resources impacting the contract. 
Identify procurement outcomes and internal inputs required. 
Identify and confirm critical success factors required. 
Identify non trivial procurement risks. 
Identify potential probity risks. 
Analyse causes of risk and their potential impact. 
Determine likelihood and consequences of risks and develop risk assessments. 
Develop preliminary risk management plan to address risks identified in planning phase. 
Identify acceptable risks and those requiring treatment. 
Design treatments to reduce risks to an acceptable level. 
Develop plans for implementing new treatments, additional risk controls or modifications to existing controls. 
Monitor risk level at key points during procurement process and, review and adjust risk management plan to cover procurement activity risks not already identified. 
Implement risk controls and treatments according to the treatment plan. 
Implement risk management plan, monitor and revise to include potential or emerging risks during the life of the procurement activity. 
Improve risk treatments and controls using review results. 

Forms

Assessment Cover Sheet

PSPPCM010 - Manage procurement risk
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

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Assessment Record Sheet

PSPPCM010 - Manage procurement risk

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: