SITXCRI601
Manage a business continuity crisis

This unit describes the performance outcomes, skills and knowledge required to identify the ramifications of a crisis on business continuity and to respond with strategies that ensure the financial viability of the organisation. It requires the ability to identify and interpret information relevant to the crisis and the business operation and to assess and adapt business operations to manage the crisis.Managing business continuity is a complex process which involves the use of a range of other interrelated skills, such as financial analysis, budgeting, developing operational plans and adapting the provision of products to meet the needs of a market in crisis. These skills are found within other units.

Application

This unit applies to all tourism, travel, hospitality and event sectors and to any small, medium or large organisation. The crisis could be of a magnitude that affects the operation of an entire organisation, department or particular project.

It applies to senior managers and owner-operators who operate with significant autonomy and are responsible for making a range of strategic management decisions.


Prerequisites

Not applicable.


Elements and Performance Criteria

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

1. Identify and acknowledge the crisis.

1.1 Consider impacts on business operation through early identification of triggers for a downturn in business.

1.2 Access and interpret information relevant to the crisis.

1.3 Identify and acknowledge internal and external crises.

2. Assess impacts on the viability of the business.

2.1 Involve key people in the assessment of the crisis.

2.2 Review organisational documents to ascertain current financial and operational status of the business.

2.3 Produce new financial forecasts based on known information about the crisis.

2.4 Produce a range of forecast options based on reasonable and worst case predictions of impacts.

2.5 Monitor the severity of the crisis and adjust forecasts according to swiftly changing circumstances.

2.6 Ascertain the severity of business impacts and develop recommendations to ensure financial viability of the organisation.

3. Adapt business operations to manage the crisis.

3.1 Develop and implement an emergency operational plan to manage the crisis.

3.2 Involve key people in the management of the business crisis and integrate their perspective.

3.3 Implement accepted recommendations for changing business operations.

3.4 Communicate new practices to key people including external suppliers.

3.5 Re-align staffing arrangements to control wage costs.

3.6 Gain staff confidence in current managerial activity and their commitment to the business in crisis.

3.7 Re-align products and services to meet current market needs.

3.8 Re-negotiate with suppliers to achieve optimum profitability during the crisis.

3.9 Implement promotional and public relations activities to assure consumer confidence.

4. Monitor and evaluate business operations.

4.1 Monitor business activity and profitability throughout all stages of the crisis.

4.2 Seek internal and external feedback on the effectiveness of emergency business operations.

4.3 Identify and respond to inadequacies in emergency operational plan to account for changing circumstances.

4.4 Continually adapt business operations to ensure business continuity.

Required Skills

Required skills

communication skills to:

consult with others on complex operational, financial and management issues

communicate difficult operational changes

impart confidence to staff throughout a crisis

assure consumer confidence through promotional and public relations activities

critical thinking skills to evaluate the severity of crisis impacts on business operations and to re-align practices to ensure the financial viability of the organisation

literacy skills to:

read and interpret complex and unfamiliar reports about external crises and a range of complex internal business management plans and reports

research the internal and external factors that may impact on business performance

write clear, accurate and complex emergency operational plans

numeracy skills to interpret and analyse financial information, including forecasts and previous performance data, and to develop financial estimates and scenarios

planning and organising skills to manage a cohesive and changeable response to crises and produce reports within tight timelines

problem-solving skills to:

identify, acknowledge and immediately respond to crises

react to swiftly changing circumstances

self-management skills to take responsibility for managing a business in crisis and for the outcomes of emergency management practices

teamwork skills to involve key staff members in the assessment and management of a business crisis

technology skills to use accounting software packages.

Required knowledge

for the specific industry sector and organisation:

the key characteristics of internal and external crises

impacts of crises on the provision of products and services and business viability

historical impacts of crises on tourism, hospitality and event operations

the major triggers for a downturn in customer sales

consultative mechanisms commonly used by organisations

promotion and public relations activities commonly used by organisations during a crisis

the role of key external people and organisations in managing a business crisis

techniques to adapt business operations to manage a business in crisis

for the specific organisation:

the roles and responsibilities of key staff members and external consultants

the contents and role of organisational documents in managing the business

a range of formats for and inclusions of emergency operational plans

the features and functions of financial software programs for preparing and monitoring financial reports.

Evidence Required

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

identify and assess the ramifications of a crisis on business continuity

assess and adapt business operations to manage a business continuity crisis

develop clear, accurate and complex emergency operational plans

implement an emergency operational plan and monitor, evaluate and adapt the outcomes over a period of time

integrate knowledge of the key characteristics of internal and external crises and impacts on business viability.

Context of and specific resources for assessment

Assessment must ensure use of:

a real or simulated tourism, hospitality or event industry business operation or event facing a business continuity crisis

computers, software programs, printers and communication technology used to administer crisis management

current commercial plans and financial reports

crisis information

a team so that consultative actions can be implemented.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

evaluation of a portfolio, prepared by the individual, incorporating documents used for the management of a business or event crisis:

summary of crisis research material

recommendations for managing the situation

an emergency operational plan detailing strategies to ensure the financial viability of the organisation

direct observation, using role plays, of the individual consulting with and briefing key staff members on emergency operational practices

use of case studies and problemsolving exercises so the individual can identify and evaluate the impacts of different types of crises on tourism, hospitably and event businesses

written and oral questioning to assess knowledge of:

the key characteristics of internal and external crises

historical impacts of crises on tourism, hospitality and event operations

the major triggers for a downturn in customer sales

review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.

Guidance information for assessment

The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:

BSBFIM601A Manage finances

BSBMGT515A Manage operational plan

SITHKOP501 Design and cost menus

SITTPPD503 Research and analyse tourism data

SITTPPD601 Develop tourism products

SITXFIN501 Prepare and monitor budgets.


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Triggers may include:

changes in the length and regularity of holidays taken by the source market

changes in the popularity of:

destinations

style of tourism, travel and hospitality products

budget or premium product

closure of major transport suppliers:

airlines

coach companies

cruise operators

closure of the operation of multiple suppliers in a destination

downturn in local economic growth

global financial downturn

impending economic recession or crisis

in destinations used by the business, warnings of impending:

natural disasters

political and civil uprisings

terrorism acts

wars.

Information relevant to the crisis may be sourced from:

emergency services reports

health advisory notices and vaccination information issued by local and international bodies

industry associations and organisations

industry journals

informal discussions and networking with internal and external colleagues

media reports on external crises

press releases and emergency advice notices issued by:

local, state, territory or federal governments

destination marketing companies

regional, state and national tourism offices

franchisors

staff, contractor, supplier reports on:

accidents

breakdown or complete failure of key equipment

death

injury

major work health and safety incidents

travel warning advice issued by the federal government for Australian travellers.

Internalcrises may be:

breakdown or complete failure of key equipment

customer, tour guide or tour manager:

accident

death

major injury or illness

repatriation

destruction of infrastructure

failure of marketing program

financial loss through:

noncompliance with the law

litigation

key employee:

death

family crisis

fraud

long term illness

professional incompetence

media coverage of business’s:

accidents

incidents

impending failure

major work health and safety accident or near miss incident.

External crisesmay be:

breakdown or complete failure of supplier equipment

for destinations used by the business:

chemical spill

civil uprising

destruction of tourism infrastructure

health epidemics or pandemics

natural disaster (cyclone, earthquake, fire, flood, tsunami, etc.)

outbreak of war

political coup

radiation leak

terrorism

financial recession or crisis for the source market

global financial crisis

industrial dispute

plane crash.

Key people may include:

business accountants

customers and their families

colleagues, including:

managers

operational staff

peers

supervisors

contract tour guides and tour managers

consultants:

crisis management

marketing

public relations

financial controllers

insurance brokers and providers

legal representatives

suppliers

travel insurance providers.

Organisational documents may include:

brochures

budgets:

departmental

entire organisation

product specific

project specific

revenue and expenditure items

contracts with:

other businesses to whom products and services are supplied

suppliers

customer surveys

plans:

business

marketing

operations

product development

project

product costings and published tariffs and price lists

reports:

current financial status

financial forecasting

staff feedback

wage cost

tenders, proposals or bids

terms and conditions:

credit provision

provision of products and services to customers.

Recommendations may include:

cancellation of impending departures to affected destinations

cancellation of unprofitable products or services

closure of particular departments

moving premises to a less costly location

price rises or reductions

re-alignment of product style and pricing to meet current market needs

reduction of staff hours or staff redundancies

sale of equipment

scaling up or down of promotional activities

temporary cancellation of products within affected destinations

temporary closure of:

accommodation wings or floors

internal venues:

cafes

restaurants

retail outlets.

Staffing arrangements may include:

non-use of casual staff

re-assigning duties

reducing permanent employee hours

redundancies.


Sectors

Cross-Sector


Employability Skills

This unit contains employability skills.


Licensing Information

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.