BSBRSK501B
Manage risk
This unit describes the performance outcomes, skills and knowledge required to manage risks in a range of contexts across the organisation or for a specific business unit or area.
Application
This unit addresses the management of the risk across the organisation or within a business unit or area. It does not assume any given industry setting.
This unit applies to individuals who are working in positions of authority and are approved to implement change across the organisation, business unit, program or project area. They may or may not have responsibility for directly supervising others.
Prerequisites
Not applicable.
Elements and Performance Criteria
1. Establish risk context | 1.1 Review organisational processes, procedures and requirements for undertaking 1.2 Determine 1.3 Identify internal and external stakeholders and their issues 1.4 Review political, economic, social, legal, technological and policy context 1.5 Review strengths and weaknesses of existing arrangements 1.6 Document critical success factors, goals or objectives for area included in scope 1.7 Obtain support for risk management activities 1.8 Communicate with |
2. Identify risks | 2.1 Invite relevant parties to assist in the identification of risks 2.2 Research 2.3 Use |
3. Analyse risks | 3.1 Assess 3.2 Assess 3.3 Evaluate |
4. Select and implement treatments | 4.1 Determine and select most appropriate 4.2 Develop an 4.3 Communicate risk management processes to relevant parties 4.4 Ensure all documentation is in order and appropriately stored 4.5 Implement and monitor action plan 4.6 Evaluate risk management process |
Required Skills
Required skills
communication and literacy skills to consult and negotiate, to prepare communications about risk management, and to encourage stakeholder involvement
organisational and management skills to plan and implement risk management processes
problem
Required knowledge
AS/NZS ISO 31000:2009 Risk Management - Principles and Guidelines
legislation, codes of practice and national standards, for example:
duty of care
company law
contract law
environmental law
freedom of information
industrial relations law
privacy and confidentiality
legislation relevant to organisation’s operations
legislation relevant to operation as a business entity
organisational policies and procedures, including:
risk management strategy
policies and procedures for risk management
overall operations of organisation
reasonable adjustment in the workplace for people with a disability
types of available insurance and insurance providers.
Evidence Required
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: risk management plan which includes a detailed stakeholder analysis, explanation of the risk context, critical success factors, identified and analysed risks, and treatments for prioritised risks details of monitoring arrangements for risk management plan and an evaluation of the risk management plan’s efficacy in treating risks knowledge of relevant legislation, codes of practice and national standards. |
Context of and specific resources for assessment | Assessment must ensure: access to workplace documentation. |
Method of assessment | A range of assessment methods should be used to assess practical skills 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 observation of presentations oral or written questioning to assess knowledge of risk management policies and procedures review of documented critical success factors, and goals or objectives for area review of risks prioritised for treatment evaluation of action plan for implementing risk treatment evaluation of documentation communicating risk management processes to relevant parties. |
Guidance information for assessment | Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example: financial management units, governance units, human resource management units, or technology units. |
Range Statement
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.
Risks | commercial relationships economic circumstances and scenarios human behaviour individual activities legislation management activities and controls natural events political circumstances technology. |
Scope | given project specific business unit or area specific functional such as: financial management OHS governance external environment internal environment whole organisation. |
Relevant parties | all staff internal and external stakeholders senior management specific teams or business units technical experts. |
Research | data or statistical information information from other business areas lessons learned from other projects or activities market research previous experience public consultation review of literature and other information sources. |
Tools and techniques | brainstorms checklists fishbone diagrams flowcharts scenario analysis. |
Likelihood | probability of a given risk occurring, such as: very likely likely possible unlikely rare. |
Impact or consequence | significance of outcomes if the risk occurs, such as: disastrous severe moderate impact minimal impact. |
Evaluation | considering the likelihood of the risk occurring considering the impact of the risk determining which risks are most significant and are therefore priorities for treatment. |
Options | avoiding the risk changing the consequences changing the likelihood retaining the risk sharing the risk with a third party. |
Action plans | what actions are required who is taking responsibility time lines monitoring processes. |
Sectors
Management and Leadership – Management
Employability Skills
This unit contains employability skills.
Licensing Information
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.