A program is defined as a set of interrelated projects, each of which has a project manager. Multiple projects (sometimes called a portfolio of projects) refers to a number of projects related in some way and managed by the same person as a program to achieve a common organisational objective/s.

For the purposes of this unit someone who manages a suite of projects (a program) will be referred to as a program manager.

The functions performed by a project manager to manage risk within individual projects are addressed in BSBPMG508A Manage project risk.

ELEMENT

PERFORMANCE CRITERIA

1. Direct planning of project risk management

1.1. Direct potential, perceived and actual risk events for identification, documentation and analysis, in consultation with project managers and appropriate stakeholders, as the basis for project risk management planning

1.2. Select and modify project risk management methods, techniques and tools for project managers to analyse information, evaluate options and determine preferred risk approaches within the overall program environment

1.3. Direct development, communication and implementation of project risk management plans and strategies to ensure clarity of understanding and achievement of project objectives across the program

1.4. Develop and maintain a project risk management system to enable effective management and communication of risk events, responses and results to stakeholders across projects within the program

2. Direct management of project risk and manage program risk

2.1. Manage the program in accordance with agreed project risk management plans

2.2. Review progress, analyse variance and initiate risk responses to achieve program and multiple project objectives in changing environments

2.3. Direct risks to multiple project outcomes for monitoring, and ensure remedial actions are authorised to achieve project objectives

3. Assess project and program risk management outcomes

3.1. Review and analyse project outcomes to assess the effectiveness of the project risk management system for projects, program and organisational outcomes

3.2. Aggregate, analyse and structure lessons learned, for project managers and senior management to undertake strategic review and planning

Required skills

analytical skills to plan and review risk management approaches

literacy skills to communicate decisions and to write quality reports

initiative to identify and address risks leading to negative consequences for projects

problem-solving skills to initiate risk responses in changing environments.

Required knowledge

risk management tools, frameworks, systems, methodologies and standards.

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:

demonstrated experience in successfully directing risk management efforts across a range of concurrent projects

knowledge of risk management tools, frameworks, systems, methodologies and standards.

Context of and specific resources for assessment

Assessment must ensure:

access to workplace risk management documentation

consideration of feedback from project teams and 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 of scope management techniques by the candidate

analysis of responses addressing different project risk management case studies and scenarios

oral or written questioning to assess knowledge of strategies for managing project risks and their application to different situations

review of the development, communication and implementation of project risk management plans.

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 Advanced 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.

Risk management planning may:

be conducted substantially non-routinely to meet complex and changing circumstances

be done independently or by taking the lead in a multiple projects team environment

involve consultation with project managers and with selective involvement of stakeholders within and external to the organisation

involve the selection, modification and direction of the use of appropriate risk management methods processes, procedures, tools and techniques

take into account the impact of organisational and environmental change on the program and vice versa

Risk management methods, techniques and tools may involve:

assessing and reporting the potential impact of multiple projects' risk on the organisation

calling upon personal experience and/or subject matter experts

collating and using the products of specialist risk analysis to make program-wide risk management decisions

conducting or directing qualitative and/or quantitative risk analysis, such as schedule simulation, decision analysis, contingency planning and alternative strategy development

Risk management plans may include:

assigned risk responsibilities

contingency plans

formal arrangements

occupational health and safety (OHS) risks

potential risk events

preferred and alternative risk management strategies and actions

responsibility assignment

Unit sector

Management and Leadership - Project Management

This unit contains employability skills.