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Evidence Guide: PSPMGT007 - Manage risk

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

PSPMGT007 - Manage risk

What evidence can you provide to prove your understanding of each of the following citeria?

Establish the risk management context

  1. Establish the nature and extent of business unit activity, its objectives and outcomes within the organisational context.
  2. Identify the strategic and risk management context.
  3. Identify and consult stakeholders to ensure their views, concerns and needs are taken into account in the risk management process.
  4. Determine criteria for risk assessment.
  5. Determine risk management criteria to provide guidance on balancing risk, costs, benefits and opportunities.
  6. Monitor, review and adjust risk management criteria to ensure opportunities and current and emerging trends are reflected.
Establish the nature and extent of business unit activity, its objectives and outcomes within the organisational context.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify the strategic and risk management context.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and consult stakeholders to ensure their views, concerns and needs are taken into account in the risk management process.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine criteria for risk assessment.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine risk management criteria to provide guidance on balancing risk, costs, benefits and opportunities.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor, review and adjust risk management criteria to ensure opportunities and current and emerging trends are reflected.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Plan for risk management

  1. Investigate sources of risk and identify and consult upon potential, perceived and actual risks to ensure full coverage.
  2. Analyse risks and document in consultation with stakeholders, and determine levels of risk as the basis for risk management planning.
  3. Select risk management methods and modify as necessary to determine risks that are acceptable or unacceptable.
  4. Identify risk treatment options for unacceptable risks and determine preferred risk treatment approaches.
  5. Develop and communicate risk management plan to key stakeholders to ensure clarity and achievement of objectives throughout the activity’s life cycle.
Investigate sources of risk and identify and consult upon potential, perceived and actual risks to ensure full coverage.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse risks and document in consultation with stakeholders, and determine levels of risk as the basis for risk management planning.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Select risk management methods and modify as necessary to determine risks that are acceptable or unacceptable.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify risk treatment options for unacceptable risks and determine preferred risk treatment approaches.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop and communicate risk management plan to key stakeholders to ensure clarity and achievement of objectives throughout the activity’s life cycle.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage risk

  1. Manage activity in accordance with agreed risk management plan.
  2. Review performance, analyse variance and initiate risk responses to achieve objectives with minimal disruption and conflict.
  3. Monitor internal and external risks to outcomes and initiate remedial actions to achieve objectives.
Manage activity in accordance with agreed risk management plan.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review performance, analyse variance and initiate risk responses to achieve objectives with minimal disruption and conflict.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor internal and external risks to outcomes and initiate remedial actions to achieve objectives.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate the risk management plan

  1. Develop and implement an evaluation methodology.
  2. Review and analyse outcomes to assess the effectiveness of current risk management strategies.
  3. Monitor existing risks, identify new risks and identify any trouble spots.
  4. Seek and use a variety of information, including the perspectives of key stakeholders.
  5. Formulate and act upon recommendations on enhancements to the plan.
  6. Communicate the outcomes of evaluation to relevant personnel.
Develop and implement an evaluation methodology.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review and analyse outcomes to assess the effectiveness of current risk management strategies.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor existing risks, identify new risks and identify any trouble spots.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek and use a variety of information, including the perspectives of key stakeholders.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Formulate and act upon recommendations on enhancements to the plan.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communicate the outcomes of evaluation to relevant personnel.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish the risk management context

  1. Establish the nature and extent of business unit activity, its objectives and outcomes within the organisational context.
  2. Identify the strategic and risk management context.
  3. Identify and consult stakeholders to ensure their views, concerns and needs are taken into account in the risk management process.
  4. Determine criteria for risk assessment.
  5. Determine risk management criteria to provide guidance on balancing risk, costs, benefits and opportunities.
  6. Monitor, review and adjust risk management criteria to ensure opportunities and current and emerging trends are reflected.
Establish the nature and extent of business unit activity, its objectives and outcomes within the organisational context.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify the strategic and risk management context.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify and consult stakeholders to ensure their views, concerns and needs are taken into account in the risk management process.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine criteria for risk assessment.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine risk management criteria to provide guidance on balancing risk, costs, benefits and opportunities.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor, review and adjust risk management criteria to ensure opportunities and current and emerging trends are reflected.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Plan for risk management

  1. Investigate sources of risk and identify and consult upon potential, perceived and actual risks to ensure full coverage.
  2. Analyse risks and document in consultation with stakeholders, and determine levels of risk as the basis for risk management planning.
  3. Select risk management methods and modify as necessary to determine risks that are acceptable or unacceptable.
  4. Identify risk treatment options for unacceptable risks and determine preferred risk treatment approaches.
  5. Develop and communicate risk management plan to key stakeholders to ensure clarity and achievement of objectives throughout the activity’s life cycle.
Investigate sources of risk and identify and consult upon potential, perceived and actual risks to ensure full coverage.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse risks and document in consultation with stakeholders, and determine levels of risk as the basis for risk management planning.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Select risk management methods and modify as necessary to determine risks that are acceptable or unacceptable.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify risk treatment options for unacceptable risks and determine preferred risk treatment approaches.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Develop and communicate risk management plan to key stakeholders to ensure clarity and achievement of objectives throughout the activity’s life cycle.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Manage risk

  1. Manage activity in accordance with agreed risk management plan.
  2. Review performance, analyse variance and initiate risk responses to achieve objectives with minimal disruption and conflict.
  3. Monitor internal and external risks to outcomes and initiate remedial actions to achieve objectives.
Manage activity in accordance with agreed risk management plan.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review performance, analyse variance and initiate risk responses to achieve objectives with minimal disruption and conflict.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor internal and external risks to outcomes and initiate remedial actions to achieve objectives.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Evaluate the risk management plan

  1. Develop and implement an evaluation methodology.
  2. Review and analyse outcomes to assess the effectiveness of current risk management strategies.
  3. Monitor existing risks, identify new risks and identify any trouble spots.
  4. Seek and use a variety of information, including the perspectives of key stakeholders.
  5. Formulate and act upon recommendations on enhancements to the plan.
  6. Communicate the outcomes of evaluation to relevant personnel.
Develop and implement an evaluation methodology.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review and analyse outcomes to assess the effectiveness of current risk management strategies.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Monitor existing risks, identify new risks and identify any trouble spots.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Seek and use a variety of information, including the perspectives of key stakeholders.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Formulate and act upon recommendations on enhancements to the plan.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Communicate the outcomes of evaluation to relevant personnel.

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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.

Required Skills and Knowledge

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 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 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

wholeoflife considerations

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