SITXCRI002 - Manage a business continuity crisis assessment tool

Assessor Resource

SITXCRI002
Manage a business continuity crisis

Assessment tool

Version 1.0
Issue Date: April 2024

This unit describes the performance outcomes, skills and knowledge required to identify the ramifications of a crisis on business continuity and to respond with strategies that ensure the financial viability of the organisation. It requires the ability to identify and interpret information relevant to the crisis and the business operation, and to assess and adapt business operations to manage the crisis.

Managing business continuity is a complex process which involves the use of a range of interrelated skills, such as financial analysis, budgeting, developing operational plans and adapting the provision of products to meet the needs of a market in crisis. These skills are covered in other units.

This unit applies to all tourism, travel, hospitality and event sectors and to any size organisation. The crisis could be of a magnitude that affects the operation of an entire organisation, department or particular project.

It applies to senior managers and owner-operators who operate with significant autonomy and are responsible for making a range of strategic management decisions.

No occupational licensing, certification or specific legislative requirements apply to this 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.
1. Identify and acknowledge the crisis.	1.1.Consider impacts on business operation through early identification of triggers for a downturn in business. 1.2.Access and interpret information relevant to crisis. 1.3.Identify and acknowledge internal and external crises.
2. Assess impacts on the viability of the business.	2.1.Involve key people in assessment of crisis. 2.2.Review organisational documents to determine current financial and operational status of business. 2.3.Produce new financial forecasts based on known information about crisis. 2.4.Produce a range of forecast options based on reasonable and worst case predictions of impacts. 2.5.Monitor severity of crisis and adjust forecasts according to swiftly changing circumstances. 2.6.Determine severity of business impacts and develop recommendations to ensure financial viability of organisation.
3. Adapt business operations to manage the crisis.	3.1.Develop and implement emergency operational plan to manage the crisis. 3.2.Involve key people in managing business crisis and integrate their perspectives. 3.3.Implement accepted recommendations for changing business operations. 3.4.Communicate new practices to key people including external suppliers. 3.5.Re-align staffing arrangements to control wage costs. 3.6.Gain staff confidence in current managerial activity and commitment to the business in crisis. 3.7.Re-align products and services to meet current market needs. 3.8.Re-negotiate with suppliers to achieve optimum profitability during crisis. 3.9.Implement promotional and public relations activities to ensure consumer confidence.
4. Monitor and evaluate business operations.	4.1.Monitor business activity and profitability throughout all stages of crisis. 4.2.Seek internal and external feedback on effectiveness of emergency business operations. 4.3.Identify and respond to inadequacies in emergency operational plan to account for changing circumstances. 4.4.Continually adapt business operations to ensure business continuity.

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

identify and assess ramifications of at least two internal and two external crises on business continuity

demonstrate the following for each of the above internal or external crises on business continuity:

develop a clear, accurate and complex emergency operational plan

assess and adapt business operations to manage business continuity

implement the emergency operational plan and monitor, evaluate and adapt the plan based on outcomes.

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

trigger factors for downturns in tourism, travel, hospitality and event business:

changes in the length and regularity of holidays taken by the source market

changes in the popularity of:

destinations

style of tourism, travel and hospitality products

budget or premium product

closure of major transport suppliers:

airlines

coach companies

cruise operators

closure of the operation of multiple suppliers in a destination

downturn in local economic growth

global financial downturn

impending economic recession or crisis

in destinations used by the business, warnings of impending:

natural disasters

political and civil uprisings

terrorism acts

wars

ramifications of an internal crisis on business continuity:

breakdown or complete failure of key equipment

accident, death, major injury or illness, or repatriation of a customer, tour guide or tour manager

destruction of infrastructure

failure of marketing program

financial loss through non-compliance with the law or litigation

death, family crisis, fraud, long term illness or professional incompetence of a key employee

media coverage of business accident, incident or impending failure

major work health and safety accident or near miss incident

ramifications of an external crisis on business continuity:

breakdown or complete failure of supplier equipment

plane crash

for destinations used by the business:

chemical spill

civil uprising

destruction of tourism infrastructure

health epidemics or pandemics

natural disaster

outbreak of war or political coup

radiation leak

terrorism

financial recession or crisis for the source market

industrial dispute

specific industry sector:

key characteristics of internal and external crises

impacts of crises on the provision of products and services and business viability

historical impacts of crises on tourism, hospitality and event operations

major triggers for a downturn in customer sales

consultative mechanisms commonly used by organisations

promotion and public relations activities commonly used by organisations during a crisis

role of key external people and organisations in managing a business crisis

techniques to adapt business operations to manage a business in crisis

specific organisation:

roles and responsibilities of key staff members and external consultants

contents and role of organisational documents in managing the business

key people involved in the assessment of a business continuity crisis:

business accountants

customers and their families

colleagues

consultants:

crisis management

marketing

public relations

financial controllers

insurance brokers and providers

legal representatives

suppliers

travel insurance providers

organisational documents to determine current financial and operational status of a business:

brochures

budgets

business plans

current contracts relating to current financial and operational business matters

customer surveys

financial reports and forecasting

product costings and published tariffs and price lists

reports

tenders, proposals or bids

terms and conditions for credit provision

provision of products and services to customers

possible recommendations to ensure financial viability of businesses in continuity crisis:

cancelling impending departures to affected destinations

cancelling unprofitable products or services

closing particular departments

moving premises to a less costly location

price rises or reductions

re-aligning product style and pricing to meet current market needs

reducing staff hours, or staff redundancies

sale of equipment

scaling promotional activities up or down

temporary cancellation of products in affected destinations

temporary closure of affected locations

formats for and inclusions in emergency operational plans

features and functions of financial software programs for preparing and monitoring financial reports.

Skills must be demonstrated in a tourism, travel, hospitality or event industry business operation or event facing a business continuity crisis. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

computers, software programs, printers and communication technology used to administer crisis management

current commercial plans and financial reports

crisis information:

emergency services reports

health advisory notices and vaccination information issued by local and international bodies

industry associations and organisations

industry journals

informal discussions and networking with internal and external colleagues

media reports on external crises

press releases and emergency advice notices issued by:

local, state, territory or federal governments

destination marketing companies

regional, state and national tourism offices

franchisors

staff, contractor, supplier reports on:

accidents

breakdown or complete failure of key equipment

death

injury

major work health and safety incidents

travel warning advice issued by the federal government for Australian travellers

a team so that consultative actions can be implemented; this can be:

team in an industry workplace who are assisted by the individual during the assessment process; or

individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.

Assessors must satisfy the Standards for Registered Training Organisationsâ€™ 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.
1. Identify and acknowledge the crisis.	1.1.Consider impacts on business operation through early identification of triggers for a downturn in business. 1.2.Access and interpret information relevant to crisis. 1.3.Identify and acknowledge internal and external crises.
2. Assess impacts on the viability of the business.	2.1.Involve key people in assessment of crisis. 2.2.Review organisational documents to determine current financial and operational status of business. 2.3.Produce new financial forecasts based on known information about crisis. 2.4.Produce a range of forecast options based on reasonable and worst case predictions of impacts. 2.5.Monitor severity of crisis and adjust forecasts according to swiftly changing circumstances. 2.6.Determine severity of business impacts and develop recommendations to ensure financial viability of organisation.
3. Adapt business operations to manage the crisis.	3.1.Develop and implement emergency operational plan to manage the crisis. 3.2.Involve key people in managing business crisis and integrate their perspectives. 3.3.Implement accepted recommendations for changing business operations. 3.4.Communicate new practices to key people including external suppliers. 3.5.Re-align staffing arrangements to control wage costs. 3.6.Gain staff confidence in current managerial activity and commitment to the business in crisis. 3.7.Re-align products and services to meet current market needs. 3.8.Re-negotiate with suppliers to achieve optimum profitability during crisis. 3.9.Implement promotional and public relations activities to ensure consumer confidence.
4. Monitor and evaluate business operations.	4.1.Monitor business activity and profitability throughout all stages of crisis. 4.2.Seek internal and external feedback on effectiveness of emergency business operations. 4.3.Identify and respond to inadequacies in emergency operational plan to account for changing circumstances. 4.4.Continually adapt business operations to ensure business continuity.