Application
This unit describes the skills required to maximise results and minimise consequences for a business unit activity by managing risk. It includes establishing the risk management context, planning for risk management.
This unit applies to those managing risks.
The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.
Those undertaking this unit would work autonomously, performing complex task in a range of familiar contexts.
No licensing, legislative or certification requirements apply to unit at the time of publication.
Elements and Performance Criteria
ELEMENTS | 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 section. |
1. Establish the risk management context | 1.1 Establish the nature and extent of business unit activity, its objectives and outcomes within the organisational context. 1.2 Identify the strategic and risk management context. 1.3 Identify and consult stakeholders to ensure their views, concerns and needs are taken into account in the risk management process. 1.4 Determine criteria for risk assessment. 1.5 Determine risk management criteria to provide guidance on balancing risk, costs, benefits and opportunities. 1.6 Monitor, review and adjust risk management criteria to ensure opportunities and current and emerging trends are reflected. |
2. Plan for risk management | 2.1 Investigate sources of risk and identify and consult upon potential, perceived and actual risks to ensure full coverage. 2.2 Analyse risks and document in consultation with stakeholders, and determine levels of risk as the basis for risk management planning. 2.3 Select risk management methods and modify as necessary to determine risks that are acceptable or unacceptable. 2.4 Identify risk treatment options for unacceptable risks and determine preferred risk treatment approaches. 2.5 Develop and communicate risk management plan to key stakeholders to ensure clarity and achievement of objectives throughout the activity’s life cycle. |
3. Manage risk | 3.1 Manage activity in accordance with agreed risk management plan. 3.2 Review performance, analyse variance and initiate risk responses to achieve objectives with minimal disruption and conflict. 3.3 Monitor internal and external risks to outcomes and initiate remedial actions to achieve objectives. |
4. Evaluate the risk management plan | 4.1 Develop and implement an evaluation methodology. 4.2 Review and analyse outcomes to assess the effectiveness of current risk management strategies. 4.3 Monitor existing risks, identify new risks and identify any trouble spots. 4.4 Seek and use a variety of information, including the perspectives of key stakeholders. 4.5 Formulate and act upon recommendations on enhancements to the plan. 4.6 Communicate the outcomes of evaluation to relevant personnel. |
Evidence of Performance
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.
applying legislation, regulations and policies relating to risk management
researching and analysing the wider context affecting the organisation
using communication and consultation with a diverse range of stakeholders
applying problem solving using conceptual and reasoning skills
engaging in discussion using exchange of complex oral information
using a variety of words and language structures to explain complex, formal documents and assisting others to apply them in the workplace
Evidence of Knowledge
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.
legislation, regulations, policies, procedures and guidelines relating to risk management
Australian and New Zealand standards
Guidelines for managing risk in the Australian and New Zealand public sector
risk management cycle
the relationship of risk to context – how the context may define the risks
the importance of consultation and communication at every stage of the risk management cycle
legal requirements related to the activity
whole
approval processes
range of evaluation methodologies
the diversity of risks in the public sector
public sector legislation, including work health and safety and environment in the context of risk management
Assessment Conditions
This unit contains no specific industry-mandated assessment conditions. Guidance on suggested and recommended conditions and methods can be found in the Implementation Guide.
Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors.
Foundation Skills
Foundation skills are embedded within the elements and performance criteria of this unit.
Competency Field
Management