This section describes the essential skills and knowledge and their level required for this unit

The following skills must be assessed as part of this unit

ability to access appropriate risk identification or assessment templates

highlevel communication skills to communicate and consult with key people on issues of business risk identification assessment and control

literacy skills to read and interpret complex business management materials such as business plans marketing plans and reports that relate to managing business risks and write risk identification assessment and control documents

critical thinking skills to allow for a rational and logical evaluation of the business risk and to apply or suggest effective controls while incorporating the views of other people consulted

The following knowledge must be assessed as part of this unit

broad and working knowledge of risk management systems or practices

the way business risk management practices link with other management systems

context of risk assessment within the overall operation of the business or activity

key principles and elements of risk assessment processes

appropriate risk identification or assessment templates and their format and use

range of techniques for assessing risks such as the fourstaged hierarchical process model

broad and working knowledge of industry and legal compliance requirements

broad and working knowledge of consultative mechanisms commonly used by organisations

common risk control measures

organisational activities and capabilities

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria required skills and knowledge the range statement and the Assessment Guidelines for this TrainingPackage

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential

project or work activities that show the candidates ability to systematically identify risks to business operations assess the associated consequences and take measures to control the risks for a given service industry operation

ability to develop or access and use business risk identification and assessment template

project or work activities conducted over a commercially realistic period of time so that the monitoring and evaluation aspects of business risk can be assessed

Context of and specific resources for assessment

Assessment must ensure

that the candidate has accessed a fully equipped office environment using appropriate computers printers communication technology information programs and publications to facilitate the processes involved in managing business risk

access to an operation for which a business risk assessment can be undertaken or to comprehensive and sufficient information about that operation to allow the candidate to participate fully and actively in risk management practices

use of risk management information or business management manuals issued by industry associations or commercial publishers and template documents used for risk assessment activities

use of information sources that provide operational details on which to base business risk identification or assessment activity such as business marketing operational or project plans

involvement of key people so that consultative actions may be implemented

Methods of assessment

A range of assessment methods should be used to assess the practical skills and knowledge required to manage business risk The following examples are appropriate for this unit

evaluation of completed business risk identification and assessment template documents prepared by the candidate detailing suggested risk controls for a given project or work activity

evaluation of a portfolio that incorporates all documents used for the management of business risk for a business project or event including summary of reference material completed risk identification and assessment template documents documents detailing control measures reports detailing success of control measures and recommendations for improvements and notes or minutes from meetings and briefings

evaluation of project or work activities conducted in conjunction with an industry operator to allow the candidate to implement risk management practices for a particular business event project or business activity

direct observation of the candidate consulting with appropriate colleagues about business risk identification assessments and control

case studies and problemsolving exercises to identify and assess business risks for different types of business or operational activities

written and oral questioning or interview to test knowledge of the risk management principles

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the candidate

Holistic assessment with other units relevant to the industry sector workplace and job role is recommended for example

SITXADMA Write business documents

SITXADM003A Write business documents.

Assessing employability skills

Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors How these skills are applied varies between occupations and qualifications due to the different work functions and contexts

Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role

Operational objectives may include:

Key people may include:

Informationsources may include:

A business risk identification tool or template document and assessment criteria may include:

Methods to identify foreseeable risk may include:

Clear documents that outline identified risks and documentation of the outcome of the assessment may include:

Risks may involve:

Four-staged hierarchical process model must include:

Capability to eliminate or control risk may include: