Application
This unit describes the skills and knowledge required to develop and implement a plan or strategy for treatment of risks in an organisation. It involves applying knowledge of different risk treatment methods.
It applies to individuals with specialised knowledge who use analytical skills and systematic approaches to manage and implement organisational strategies that mitigate risk within their area of responsibility.
Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the relevant regulator for specific guidance on requirements.
Elements and Performance Criteria
1. Research and select risk treatments | 1.1 Identify and assess residual risks according to risk appetite 1.2 Determine material risks outside of appetite and assess acceptance according to organisation’s risk acceptance processes 1.3 Identify risk mitigation and treatment options for each risk according to standards for risk management as indicated by regulators 1.4 Quantify implementation time, costs and benefits for each treatment option 1.5 Select risk treatments according to organisational priorities, policy and procedures |
2. Develop risk mitigation plan | 2.1 Review treatment priorities and adequacy of existing controls, and establish need for additional or alternative controls 2.2 Identify, document and allocate actions 2.3 Establish budget, timeframes and reporting schedules |
3. Implement risk mitigation plan | 3.1 Organise personnel and resources to carry out actions 3.2 Determine indicators of progress and success 3.3 Establish monitoring system to determine effectiveness of treatments |
4. Review risk mitigation plan | 4.1 Maintain records produced by monitoring system 4.2 Review records according to established timeframes 4.3 Liaise with appropriate stakeholders regarding mitigation plan effectiveness 4.4 Determine effectiveness of risk mitigation plan |
Evidence of Performance
The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:
develop and implement one risk mitigation plan for an organisation.
In the course of the above, the candidate must communicate and consult with appropriate external and internal stakeholders at all stages of risk treatment.
Evidence of Knowledge
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
risk management principles, practices and management tools including policy and procedures
key features and purpose of standards for risk management as indicated by regulators
key requirements of legislation and regulation required to produce the performance evidence
a range of possible treatment options and controls for different types of risk
areas of applicability of treatment options in an organisation
methods of comparing suitability of risk treatment options for particular applications
key indicators for monitoring the success of selected risk mitigation strategies
techniques for management of personnel and stakeholders, including key communication methods.
Assessment Conditions
Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
This includes access to:
office equipment, technology, software and consumables
legislation, regulations and codes of practice required to produce the performance evidence
standards for risk management as indicated by regulators.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Numeracy | Uses numerical data in the development of plans, budgets and reports |
Oral communication | Participates in verbal exchanges using active listening and questioning techniques to convey information and elicit the views and opinions of internal and external personnel Clearly explains detailed information using concepts, language, tone and pace specific to the audience |
Reading | Critically analyses documentation from a variety of sources and records and consolidates information to determine requirements |
Writing | Uses a range of formats and structures to report and present information logically Develops material for a specific audience using clear, detailed and persuasive language to convey information and recommendations |
Teamwork | Uses a variety of communication tools and strategies in demonstrating the validity and importance of risk mitigation Shares knowledge, information and experience openly as an integral part of the working relationship |
Initiative and enterprise | Explores and incubates new and innovative ideas through analysis and critical thinking |
Planning and organising | Plans strategic priorities and outcomes within a flexible and efficient context in a diverse environment exposed to competing demands |
Problem solving | Uses formal analytical thinking techniques to identify or predict issues and generate possible solutions Explores and incubates new and innovative ideas through analysis and critical thinking |
Self-management | Gathers, monitors and analyses data and seeks feedback to improve processes |
Technology | Uses digital systems and technologies to enter, store or access information Adopts new and emerging technologies to complete work tasks |
Sectors
Risk management