Application
This unit describes the skills and knowledge required to manage the risks within a portfolio. It covers the identification, analysis, monitoring and control of portfolio risks.
A portfolio is the centralised management of one or more portfolios of projects, which includes identifying, prioritising, authorising, managing and controlling projects, programs and other related work, to achieve specific strategic business objectives.
It applies to individuals who operate at the strategic level within the organisation. Unlike projects or programs, a portfolio does not have a finite life, instead it is a continuous process and requires regular tending to ensure the portfolio remains in balance and is consistent with the organisation’s strategic objectives.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Identify portfolio risks | 1.1 Establish and continuously review standards and procedures for portfolio risk management 1.2 Integrate the portfolio risk management approach with organisational risk management systems and strategies 1.3 Undertake analysis to determine the organisations risk appetite 1.4 Seek input about risks from stakeholders, executive management and other specialists 1.5 Identify external and internal threats and opportunities and assess their impact on the portfolio |
2. Analyse portfolio risks | 2.1 Capture results from project and program risks analysis to determine overall portfolio risk profile and organisational exposure 2.2 Ensure that executive management determines the level of acceptable portfolio risk 2.3 Capture and review individual project/program risks on a regular basis to determine the potential impact on the organisation 2.4 Audit project and program risks regularly to monitor risk management performance and assess the portfolio risk profile |
3. Monitor and control portfolio risks | 3.1 Implement and manage organisational risk reserves 3.2 Explore opportunities identified through risk analysis 3.3 Actively manage portfolio risks to minimise organisational impact |
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 1.1, 1.3, 2.1, 2.3, 2.4 | Applies appropriate strategies to construct meaning from complex texts |
Writing | 1.1, 1.3, 1.4, 2.1, 2.3, 2.4 | Demonstrates sophisticated writing skills by selecting appropriate conventions and stylistic devices to express precise meaning |
Oral Communication | 1.4 | Participates in a range of verbal exchanges using language and features appropriate to audience Uses active listening and questioning techniques to confirm understanding |
Navigate the world of work | 1.1, 1.2 | Contributes to the development and review of procedures to align with organisational goals and values |
Interact with others | 1.4 | Selects and uses appropriate communication methods and practices to seek information from a range of stakeholders |
Get the work done | 1.1, 1.2, 1.3, 1.5, 2.1, 2.2, 2.3, 2.4, 3.1, 3.2, 3.3 | Develops flexible plans for complex, high impact activities with strategic implications with specific focus on risk assessment and management Prioritises and schedules complex activities, monitors implementation and makes changes to plans where required Systematically analyses and assesses available information to decide on actions needed to manage portfolio risk Stores results from risk analysis to enable future access Identifies opportunities for new ideas or approaches based on risk analysis |
Sectors
Management and Leadership – Project Management