Application
This unit of competency specifies the outcomes required to develop, implement and evaluate a risk management system to ensure effective operations in the property industry. It requires the ability to determine system requirements, and identify and organise appropriate support processes to implement, monitor, maintain and review the system.
The unit supports the work of those involved in developing, implementing and evaluating risk management systems in the property industry. It applies to real estate agents, strata community managers, stock and station agents, Nationwide House Energy Rating Scheme (NatHERS) assessors, and home sustainability assessors.
Licensing, legislative, regulatory or certification requirements apply to this unit in some States and Territories. Relevant state and territory regulatory authorities should be consulted to confirm those requirements.
Elements and Performance Criteria
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions. | ||
1. | Determine risk management system requirements. | 1.1. | Risk management context is determined. |
1.2. | Relevant documentation and legislative requirements are reviewed to identify critical requirements of risk management strategy. | ||
1.3. | Resource requirements to facilitate achievement of risk management goals and objectives are identified and arranged. | ||
1.4. | Roles and responsibilities associated with implementing risk management activities are established according to risk management strategy. | ||
2. | Organise support processes. | 2.1. | Consultative processes are used to determine individual professional development requirements. |
2.2. | Risk management processes requiring specialist support are identified and personnel or finance support is sought as required. | ||
2.3. | Systems to encourage communication flow and feedback are established and maintained to ensure an accurate exchange of information between relevant people. | ||
2.4. | Administrative processes are analysed to ensure outcomes are accurately reported and recorded. | ||
2.5. | Assessment criteria for measuring level of potential or existing risk and assessment of consequences are developed. | ||
3. | Monitor and maintain system. | 3.1. | Risk management system is systematically evaluated to maintain consistency and meet relevant legislative and organisational requirements. |
3.2. | Factors affecting achievement of risk management strategies are identified and required variations are negotiated and agreed. | ||
3.3. | Information, costs and statistics relating to risk management system are collected and analysed. | ||
3.4. | Audits of implementation of treatments of risks are arranged according to risk management system requirements. | ||
3.5. | Changes to operating environment and risk or threat to assets are monitored on an ongoing basis, and corrective measures are identified and implemented according to risk management plan. | ||
4. | Review and report on system. | 4.1. | Risk management plan is reviewed against established criteria to improve and modify future risk assessment practices. |
4.2. | Evaluation processes are implemented that incorporate strategies for review, evaluation and comparison of risk management strategies and processes, according to risk management plan. | ||
4.3. | Feedback regarding satisfaction with risk assessment practices is collected, analysed and included in evaluation process. | ||
4.4. | Business continuity plan covering all aspects of continuity cycle is developed. | ||
4.5. | Findings of analysis of risk management system are incorporated into business continuity plan. | ||
Evidence of Performance
A person demonstrating competency in this unit must satisfy all of the elements, performance criteria, foundation skills and range of conditions of this unit.
The person must also develop, implement and evaluate a risk management system for one aspect of a property-related organisation to ensure its effective operation.
In doing the above, the person must:
determine system requirements
maintain required physical and human resources to support the risk management system
apply knowledge of organisation’s practices, ethical standards, and legislative requirements associated with developing, implementing and evaluating a risk management system
prepare a business continuity plan to cover emergency and disaster planning
review the risk management system to identify and implement improvements
support staff to manage risk, and implement recovery processes where projected risks have eventuated.
Evidence of Knowledge
A person demonstrating competency in this unit must demonstrate knowledge of:
auditing requirements for risk management systems
client and organisational privacy and confidentiality requirements
business continuity cycle and plans, including development process and required contents
insurance policies, codes and operations
mechanisms to obtain and analyse feedback on risk management system
organisational goals and objectives, activities and systems relating to risk management system
key requirements of federal, state or territory legislation and local government regulations relating to:
anti-discrimination
consumer protection
environmental issues
equal employment opportunity (EEO)
financial probity
franchise and business structures
industrial relations
privacy
property sales, leasing and management
public safety
work health and safety (WHS)
risks in property-related organisations, including:
assessment criteria
risk assessment techniques and processes
risk management plans
industry standards and code of conduct relating to coordinating risk management systems in the property industry.
Assessment Conditions
The following must be present and available to learners during assessment activities:
equipment:
computer system with internet, email and printing facilities
specifications:
specialist advice on risks and risk management in the property industry
risk assessment reports
best practice case studies of risk management procedures in property and related industries
workplace policies and procedures relating to risk management and other key business processes
supervisor:
member of a work team in a property industry context.
Assessor requirements
As a minimum, assessors must satisfy the assessor requirements in the Standards for Registered Training Organisations (RTOs) current at the time of assessment.
Foundation Skills
This section describes the language, literacy, numeracy and employment skills essential to performance in this unit but not explicit in the performance criteria. | |
Skill | Performance feature |
Learning skills to: | evaluate information from a variety of sources to inform analysis of risk management system. |
Numeracy skills to: | interpret statistical and graphical data to evaluate risks. |
Oral communication skills to: | discuss perceived and actual risks with team members and professional advisors use language and concepts appropriate to cultural differences. |
Reading skills to: | interpret and extract information from documentation, including risk assessments, to inform development of risk management strategy. |
Writing skills to: | prepare and document business continuity plans that cover emergency and disaster planning. |
Digital literacy skills to: | communicate electronically with team members and professional advisors. |
Range Statement
This section specifies work environments and conditions that may affect performance. Essential operating conditions that may be present (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) are included. Bold italicised wording, if used in the performance criteria, is detailed below. | |
Risk management context must include at least one of the following: | business operations competitors economic climate human and physical assets of organisation organisational strengths and weaknesses previous history of organisational operations. |
Business continuity plan must include at least one of the following: | full recovery resilient design resilient operations salvage service restoration. |
Sectors
Property services
Competency Field
Strata community management