This unit applies to those responsible for managing and leading a project in an organisation, business or as a consultant.
The project manager operates within assigned authority levels, and is responsible for own performance and the performance of others.
The project manager may undertake the work in the context of an organisational program and/or portfolio of projects.
This unit has generic application for projects in a range of industries, organisations and contexts.
In the context of this unit a project is defined as involving:
a comprehensive, detailed and integrated project management plan
a formal communications plan
a dedicated and project-based budget
formal and planned engagement with a wide range of stakeholders
a documented risk, issues and change-management methodology
a quality plan with assurance and control processes
a project team-based environment.
Not applicable.
1. Identify project risks | 1.1 Determine risk objectives and standards, with input from stakeholders 1.2 Establish project risk context to inform risk-management processes 1.3 Identify project risks using valid and reliable risk-identification methods 1.4 Classify project risks within agreed risk categories |
2. Analyse project risks | 2.1 Determine risk-analysis classification criteria and apply to an agreed risk-ranking system 2.2 Use risk-analysis processes, within delegated authority, to analyse and qualify risks, threats and opportunities 2.3 Determine risk priorities in agreement with project client and other stakeholders 2.4 Document risk-analysis outcomes for inclusion in risk register and risk-management plan |
3. Establish risk treatments and controls | 3.1 Identify and document existing risk controls 3.2 Consider and determine risk-treatment options using agreed consultative methods 3.3 Record and implement agreed risk treatments 3.4 Update risk plans and allocate risk responsibilities to project team members |
4. Monitor and control project risks | 4.1 Establish regular risk-review processes to maintain currency of risk plans 4.2 Regularly monitor risk environment to identify changed circumstances that impact on project risks 4.3 Determine risk responses to changed environment 4.4 Implement agreed risk responses and modify plans to maintain currency of risk treatments and controls |
5. Assess risk-management outcomes | 5.1 Review project outcomes to determine effectiveness of risk-management processes and procedures 5.2 Identify and document risk-management issues and recommended improvements for application to future projects |
Required skills
analytical skills to review project outcomes in terms of risk management
lateral thinking skills to identify and analyse risks and risk controls
literacy skills to produce risk-management plans
planning and organising skills to monitor project progress
problem-solving skills to control risks.
Required knowledge
industry sector risk classifications
organisation and industry standard risk frameworks
quantitative and qualitative risk-management techniques, tools and approaches.
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.
Overview of assessment | |
Critical aspects for assessment and evidence required to demonstrate competency in this unit | Evidence of the following is essential: effective risk management for a project of sufficient complexity to demonstrate the full range of performance requirements applying risk-management techniques, strategies and tools. |
Context of and specific resources for assessment | Assessment must ensure: access to workplace risk-management documentation consideration of feedback from project stakeholders as to how risks were managed. |
Method of assessment | A range of assessment methods should be used to assess practical skill and knowledge. The following examples are appropriate for this unit: direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate oral or written questioning to assess knowledge of the risk-management framework analysis of responses in addressing case studies and scenarios that present issues and problems in project risk management review of risk-management plans evaluation of monitoring of progress against project plans assessment of identified and documented risk issues and recommended improvements. |
Guidance information for assessment | Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example: other units in the Diploma of Project Management. |
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Standards may include: | Australian and international standards enterprise and industrial agreements industry codes of practice industry standards organisational and industrial agreements organisational policies, systems and procedures regulations and legislation. |
Project risk context may include: | legislation and regulation controls nature of project organisational risk policies and procedures project environment stakeholder expectations. |
Project risks may include: | predicted future events threats opportunities hazards. |
Risk-identification methods may include: | conducting or supervising qualitative and/or quantitative risk analysis, such as schedule simulation, decision analysis, contingency planning and alternative strategy development lessons learned from previous projects personal experience input previous risk registers risk workshops subject matter experts using specialist risk-analysis tools to assist in the decision-making process. |
Risk categories may include: | communications compliance consultative environmental finance health and safety human resources legal organisational brand physical political project assumptions project constraints project process risks quality social technology. |
Risk-ranking system may include: | classification rankings from low to high consequence of risk scale impact of risk scale manual or software-based systems organisational risk policies and methods predetermined ranking criteria target and trigger settings. |
Delegated authority refers to planning and activities that may: | be conducted routinely or as changing circumstances dictate be done independently within broad guidance involve consultation with other project members, teams and internal stakeholders involve taking a lead role in a team where required involve the selection, use and supervision of appropriate risk-management methods, tools and techniques. |
Risk-management plan may include: | audit trail for risk management over project life cycle format of information organisation systems and risk methods manual and computerised systems risk register summary outcome of risk processes. |
Risk controls may include: | accepted industry practice and codes of conduct existing risk planning actions legislation or regulation over processes modifications to plans and processes organisational risk policies and procedures quality systems work methods. |
Risk-treatment options may include: | accept risk mitigate risk transfer or share risk avoid risk. |
Risk-review processes may include: | ad hoc due to emergency events gateway or stage transition reviews ongoing through team member assigned responsibility regular risk discussions at project meetings scheduled formal reviews. |
Risk responses may be made: | in consultation with project team members, section heads, project managers and stakeholders independently or with endorsement of higher project authority if necessary regularly throughout the project life cycle taking into account internal organisational change and external environmental change. |
Management and Leadership – Project Management
This unit contains employability skills.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.