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