Elements and Performance Criteria
Elements and Performance Criteria | |||
Element | Performance Criteria | ||
1 | Assess risk | 1.1 | Legislation, policies, business processes and resources impacting on the contract are identified |
1.2 | Contract deliverables and internal inputs necessary for effective contract performance are identified | ||
1.3 | Critical success factors necessary for the achievement of contract deliverables are identified and confirmed | ||
1.4 | Non-trivial business risks relating to the contract are identified | ||
1.5 | Causes of risk are analysed and their potential impact is determined | ||
1.6 | Likelihood of risks is determined and risk ratings are developed | ||
2 | Prepare risk management plan | 2.1 | A preliminary risk management plan is developed that addresses risks identified in the planning phase of the contract |
2.2 | Risks that will be accepted and those requiring treatment are identified | ||
2.3 | Treatments that reduce risks to an acceptable level are designed in accordance with organisational requirements | ||
2.4 | A plan for implementing new treatments, additional controls or modifications to existing controls is developed | ||
2.5 | Where risks relate to the business context, risk management policies and procedures are reviewed and developed/amended | ||
2.6 | Risk level is re-checked in the contract development phase, and the risk management plan is reviewed and adjusted to cover contract management risks not already identified | ||
3 | Implement and review risk management plan | 3.1 | Risk controls and treatments are implemented in accordance with the treatment plan |
3.2 | The risk management plan is implemented, and regularly reviewed and revised to include potential or emerging risks during the life of the contract | ||
3.3 | Review results are used to improve risk treatments and controls |
Required Skills
REQUIRED SKILLS AND KNOWLEDGE |
This section describes the essential skills and knowledge and their level, required for this unit. |
Skill requirements Look for evidence that confirms skills in: analysing risks associated with procurement and contracting interpreting complex, formal documents writing plans requiring reasoning and precision of expression responding to diversity, including gender and disability applying occupational health and safety and environmental requirements in the context of contract risk management |
Knowledge requirements Look for evidence that confirms knowledge and understanding of: Commonwealth/State/Territory Government legislation, policies, practices and guidelines relating to contract risk management, including environmental purchasing guidance risk management procedures probity principles and issues risks associated with financial and accounting issues relevant to the contract public sector legislation including occupational health and safety and environment aspects of law of contracts, trade practices law and commercial law relevant to contract risk management relating to complex procurement equal employment opportunity, equity and diversity principles |
Evidence Required
The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package. | |
Units to be assessed together | Pre-requisite units that must be achieved prior to this unit: Nil Co-requisite units that must be assessed with this unit: Nil Co-assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to: PSPETHC501B Promote the values and ethos of public service PSPGOV504B Undertake research and analysis PSPGOV505A Promote diversity PSPGOV511A Provide leadership PSPGOV517A Coordinate risk management PSPLEGN501B Promote compliance with legislation in the public sector PSPPROC502A Establish contract management arrangements PSPPROC503A Manage contract performance PSPPROC504A Finalise contracts |
Overview of evidence requirements | In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms: the knowledge requirements of this unit the skill requirements of this unit application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework) management of contract risk in a range of (3 or more) contexts (or occasions, over time) |
Resources required to carry out assessment | These resources include: legislation, policy, procedures and protocols relating to contract risk management case studies and workplace scenarios to capture the range of contract risk situations likely to be encountered |
Where and how to assess evidence | Valid assessment of this unit requires: a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when managing contract risk, including coping with difficulties, irregularities and breakdowns in routine management of contract risk in a range of (3 or more) contexts (or occasions, over time) Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as: people with disabilities people from culturally and linguistically diverse backgrounds Aboriginal and Torres Strait Islander people women young people older people people in rural and remote locations Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of: case studies portfolios questioning scenarios authenticated evidence from the workplace and/or training courses |
For consistency of assessment | Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments |
Range Statement
The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in italics in the Performance Criteria is explained here. | |
Information sources used to assess risk may include | computer modelling sensitivity analysis structured interviews statistical data questionnaires fault trees analysis of consequences - loss of money, time, labour, intangibles |
Legislation and policies may include | Commonwealth and State/Territory legislation including equal employment opportunity and anti-discrimination law national and international codes of practice and standards the organisation's policies and practices government policy codes of conduct national competition policy |
Risk ratings | differentiate between risks that have: high impact/consequence/likelihood and those having low |
Risk management is | a logical and systematic process of identifying, analysing, assessing, treating, and monitoring risks related with any strategy, plan, process, program or procedure that will enable the organisation to minimise losses and maximise opportunities often considered in relation to an organisation's: people assets and physical environment reputation and image legal issues business continuity finances stated outcomes |
Risk controls may include | hierarchy of controls aversion risk mitigation reduction in likelihood reduction of consequences transfer of responsibility retention |
Sectors
Competency Field
Procurement&Contract Management
Employability Skills
This unit contains employability skills.