SIRXRSK003
Manage risk in the retail environment


Application

This unit describes the performance outcomes, skills and knowledge required to manage risks across a retail organisation, department or function. This includes establishing the risk context, assessing and treating risks.

This unit applies to senior personnel working in a diverse range of sectors and business contexts. They operate independently and are responsible for making a range of operational business decisions and risk management.

No occupational licensing, certification or specific legislative requirements apply to this 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.

1. Establish risk context.

1.1.Review organisational policies and procedures for undertaking risk management activities.

1.2.Review strengths and weaknesses of existing risk management arrangements.

1.3.Determine scope for risk management, and document critical success factors in managing risks.

2. Identify risks.

2.1.Consult with relevant internal and external stakeholders to assist in identification of risks.

2.2.Research internal and external risks that may apply to risk scope.

2.3.Systematically analyse information to decide on appropriate risk management treatments.

2.4.Document identified risks according to organisational procedures.

3. Assess risks.

3.1.Assess and document likelihood of identified risks occurring.

3.2.Assess and document impact or consequences if identified risks occur.

3.3.Evaluate, prioritise and document identified risks for management.

4. Treat risks.

4.1.Consult with relevant internal and external stakeholders on risks and risk management.

4.2.Determine and select most appropriate options for managing assessed risks.

4.3.Document a risk management plan according to organisational procedures.

4.4.Implement and monitor the risk management plan, amending plan as required.

4.5.Monitor implementation of risk management activities.

Evidence of Performance

Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:

identify and analyse one internal and one external risk for one of the following:

retail organisation

retail department

retail function

develop and implement a risk management plan for the management of one of the above identified risks, covering:

an assessment of potential impact of the risk

action to be taken to mitigate and treat the risk

review and document outcomes of the risk management plan.


Evidence of Knowledge

Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

organisational policies and procedures relevant to:

identifying risks

assessing risks

treating risks

risk management plans

sources of information to establish risks

regulation and compliance relevant to risk management in the retail industry

ISO 31000 - Risk management

risk identification methods:

scenario based

objective based

internal audit

environmental scanning

risk treatment options:

avoidance

reduction

sharing

retention

commercial impact of risk management both favourable and unfavourable:

reputation

fines

business closure

health risk

team morale

absenteeism

retail risks:

global risks

political

economic

social

legal

technological

consumer markets and behavioural change

regulation and compliance

cost control

brand image

supply chain and sourcing

commercial real estate

competition

security

safety.


Assessment Conditions

Skills must be demonstrated in a services industry environment. This can be:

an industry workplace

a simulated industry environment.

Assessment must ensure access to:

relevant documentation:

relevant legislation, regulations, standards and codes

organisational policies and procedures relevant to risk management as listed in the Knowledge Evidence

existing risk management plan

internal and external stakeholders with whom to consult; these can be:

individuals in an industry workplace, or

individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment

Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.


Foundation Skills

Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement.

SKILLS

DESCRIPTION

Reading skills to:

gather, interpret and analyse textual information from sources to identify information relevant to risk management in retail.

Writing skills to:

document risk management analysis and assessment priorities and processes.

Oral communication skills to:

consult multiple stakeholders using questioning and listening to elicit opinions, and to confirm and clarify comprehension.

Initiative and enterprise skills to:

highlight retail specific risks that exist within the external market place.

Planning and organising skills to:

sequence and schedule routine and complex risk treatment activities.

Technology skills to:

use digital technologies and systems to access information, document plans and communicate with others.


Sectors

Cross-Sector


Competency Field

Risk Management and Security