Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

BSBSMB401 Mapping and Delivery Guide
Establish legal and risk management requirements of small business

Version 1.0
Issue Date: March 2024


Qualification -
Unit of Competency BSBSMB401 - Establish legal and risk management requirements of small business
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to identify and comply with all regulations affecting the business. It applies to individuals operating a small business who use analytical skills to interpret legislation and regulations and develop procedures to manage compliance.No licensing, legislative or certification requirements apply to this unit at the time of publication.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the Management and Leadership – Small and Micro Business field of work and include access to:

office equipment and resources

business technology including internet access

specialist software for analysis of data

relevant legislation, regulations, standards and codes

relevant workplace documentation and resources

case studies, or where possible, real situations

interaction with others.

Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.

Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities
Slides
PPT
Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Identify and implement business legal requirements
  • Identify and research possible options for the business legal structure using appropriate sources
  • Determine legislation and regulatory requirements affecting operations of the business under its chosen structure
  • Develop and implement procedures to ensure full compliance with relevant legislation and regulatory requirements
       
Element: Comply with legislation, codes and regulatory requirements
  • Establish systems to ensure legal rights and responsibilities of the business are identified and the business is adequately protected, specifically in relation to work health and safety (WHS), business registration and environmental requirements
  • Identify taxation principles and requirements relevant to the business, and follow procedures to ensure compliance
  • Identify and carefully maintain legal documents and maintain and update relevant records to ensure their ongoing security and accessibility
  • Monitor provision of products and services of the business to protect legal rights and to comply with legal responsibilities
  • Conduct investigations to identify areas of noncompliance with legal and regulatory requirements, and take corrective action where necessary
       
Element: Negotiate and arrange contracts
  • Seek legal advice on contractual rights and obligations, if required, to clarify business liabilities
  • Investigate and assess potential products and services to determine procurement rights and ensure protection of business interests where applicable
  • Negotiate and secure contractual procurement rights for goods and services including contracts with relevant people, as required, in accordance with the business plan
  • Identify options for leasing or ownership of business premises and complete contractual arrangements in accordance with the business plan
       
Element: Identify and treat business risks
  • identify potential internal and external risks to the business
  • assess the probability and impact of identified risks
  • prioritise risks for treatment
  • develop actions to mitigate risks including identifying insurance requirements and adequate cover
       


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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify and implement business legal requirements

1.1 Identify and research possible options for the business legal structure using appropriate sources

1.2 Determine legislation and regulatory requirements affecting operations of the business under its chosen structure

1.3 Develop and implement procedures to ensure full compliance with relevant legislation and regulatory requirements

2. Comply with legislation, codes and regulatory requirements

2.1 Establish systems to ensure legal rights and responsibilities of the business are identified and the business is adequately protected, specifically in relation to work health and safety (WHS), business registration and environmental requirements

2.2 Identify taxation principles and requirements relevant to the business, and follow procedures to ensure compliance

2.3 Identify and carefully maintain legal documents and maintain and update relevant records to ensure their ongoing security and accessibility

2.4 Monitor provision of products and services of the business to protect legal rights and to comply with legal responsibilities

2.5 Conduct investigations to identify areas of noncompliance with legal and regulatory requirements, and take corrective action where necessary

3. Negotiate and arrange contracts

3.1 Seek legal advice on contractual rights and obligations, if required, to clarify business liabilities

3.2 Investigate and assess potential products and services to determine procurement rights and ensure protection of business interests where applicable

3.3 Negotiate and secure contractual procurement rights for goods and services including contracts with relevant people, as required, in accordance with the business plan

3.4 Identify options for leasing or ownership of business premises and complete contractual arrangements in accordance with the business plan

4. Identify and treat business risks

4.1 identify potential internal and external risks to the business

4.2 assess the probability and impact of identified risks

4.3 prioritise risks for treatment

4.4 develop actions to mitigate risks including identifying insurance requirements and adequate cover

Evidence of the ability to:

demonstrate a systematic approach to identifying, managing and meeting legal and regulatory requirements, specifically in regard to WHS, business registration and environmental requirements

ensure compliance, by:

following taxation and industrial relations principles

updating and maintaining legal documents

investigating areas of non-compliance

monitoring provision of products and services

taking corrective action where necessary

negotiate and arrange contracts, including:

seeking legal advice

investigating procurement rights

identifying options of leasing or ownership of business premises.

Identify, assess and treat risks specific to the business including

prioritising risks with highest probability of occurrence and greatest negative impact on the business

identifying insurance requirements

Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.

To complete the unit requirements safely and effectively, the individual must:

outline business registration and licensing requirements

identify all government legislative requirements relating to the specific business operation

explain creation and termination of relevant legal contracts

summarise relevant cultural differences and legal implications

describe legal rights and obligations of alternative ownership structures

outline necessary record keeping to meet minimum legal and taxation requirements

summarise relevant consumer legislation and industry codes of practice

outline the key steps in the risk management process

explain relevant insurance requirements and products.


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, 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.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Identify and implement business legal requirements

1.1 Identify and research possible options for the business legal structure using appropriate sources

1.2 Determine legislation and regulatory requirements affecting operations of the business under its chosen structure

1.3 Develop and implement procedures to ensure full compliance with relevant legislation and regulatory requirements

2. Comply with legislation, codes and regulatory requirements

2.1 Establish systems to ensure legal rights and responsibilities of the business are identified and the business is adequately protected, specifically in relation to work health and safety (WHS), business registration and environmental requirements

2.2 Identify taxation principles and requirements relevant to the business, and follow procedures to ensure compliance

2.3 Identify and carefully maintain legal documents and maintain and update relevant records to ensure their ongoing security and accessibility

2.4 Monitor provision of products and services of the business to protect legal rights and to comply with legal responsibilities

2.5 Conduct investigations to identify areas of noncompliance with legal and regulatory requirements, and take corrective action where necessary

3. Negotiate and arrange contracts

3.1 Seek legal advice on contractual rights and obligations, if required, to clarify business liabilities

3.2 Investigate and assess potential products and services to determine procurement rights and ensure protection of business interests where applicable

3.3 Negotiate and secure contractual procurement rights for goods and services including contracts with relevant people, as required, in accordance with the business plan

3.4 Identify options for leasing or ownership of business premises and complete contractual arrangements in accordance with the business plan

4. Identify and treat business risks

4.1 identify potential internal and external risks to the business

4.2 assess the probability and impact of identified risks

4.3 prioritise risks for treatment

4.4 develop actions to mitigate risks including identifying insurance requirements and adequate cover

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 and research possible options for the business legal structure using appropriate sources 
Determine legislation and regulatory requirements affecting operations of the business under its chosen structure 
Develop and implement procedures to ensure full compliance with relevant legislation and regulatory requirements 
Establish systems to ensure legal rights and responsibilities of the business are identified and the business is adequately protected, specifically in relation to work health and safety (WHS), business registration and environmental requirements 
Identify taxation principles and requirements relevant to the business, and follow procedures to ensure compliance 
Identify and carefully maintain legal documents and maintain and update relevant records to ensure their ongoing security and accessibility 
Monitor provision of products and services of the business to protect legal rights and to comply with legal responsibilities 
Conduct investigations to identify areas of noncompliance with legal and regulatory requirements, and take corrective action where necessary 
Seek legal advice on contractual rights and obligations, if required, to clarify business liabilities 
Investigate and assess potential products and services to determine procurement rights and ensure protection of business interests where applicable 
Negotiate and secure contractual procurement rights for goods and services including contracts with relevant people, as required, in accordance with the business plan 
Identify options for leasing or ownership of business premises and complete contractual arrangements in accordance with the business plan 
identify potential internal and external risks to the business 
assess the probability and impact of identified risks 
prioritise risks for treatment 
develop actions to mitigate risks including identifying insurance requirements and adequate cover 

Forms

Assessment Cover Sheet

BSBSMB401 - Establish legal and risk management requirements of small business
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:

Signature:

Date:


Assessment Record Sheet

BSBSMB401 - Establish legal and risk management requirements of small business

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: