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Evidence Guide: PSPMNGT608B - 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

 

PSPMNGT608B - Manage risk

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

Establish the risk management context

  1. The nature and extent of business unit activity, its objectives and outcomes are established within the organisational context.
  2. The strategic and risk management context are identified in accordance with organisational requirements.
  3. Stakeholders are identified and consulted to ensure their views, concerns and needs are taken into account in the risk management process.
  4. Criteria for risk assessment are determined in accordance with legislation, policy and procedures.
  5. Risk management criteria are determined to provide guidance on balancing risk, costs, benefits and opportunities.
  6. Risk management criteria are monitored, reviewed and adjusted to ensure opportunities and current and emerging trends are reflected.
The nature and extent of business unit activity, its objectives and outcomes are established within the organisational context.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

The strategic and risk management context are identified in accordance with organisational requirements.

Completed
Date:

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Evidence:

 

 

 

 

 

 

 

Stakeholders are identified and consulted to ensure their views, concerns and needs are taken into account in the risk management process.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Criteria for risk assessment are determined in accordance with legislation, policy and procedures.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Risk management criteria are determined to provide guidance on balancing risk, costs, benefits and opportunities.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Risk management criteria are monitored, reviewed and adjusted to ensure opportunities and current and emerging trends are reflected.

Completed
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Plan for risk management

  1. Sources of risk are investigated and potential, perceived and actual risks are identified and consulted upon to ensure full coverage.
  2. Risks are analysed and documented in consultation with stakeholders, and levels of risk are determined as the basis for risk management planning in a specific activity.
  3. Risk management methods/techniques/tools are selected and modified as necessary to evaluate risks to determine those that are acceptable and those that are unacceptable.
  4. Risk treatment options are identified for unacceptable risks and preferred risk treatment approaches are determined.
  5. A risk managementplan is developed and communicated to key stakeholders to ensure clarity and achievement of objectives throughout the activity's life cycle.
Sources of risk are investigated and potential, perceived and actual risks are identified and consulted upon to ensure full coverage.

Completed
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Evidence:

 

 

 

 

 

 

 

Risks are analysed and documented in consultation with stakeholders, and levels of risk are determined as the basis for risk management planning in a specific activity.

Completed
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Risk management methods/techniques/tools are selected and modified as necessary to evaluate risks to determine those that are acceptable and those that are unacceptable.

Completed
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Risk treatment options are identified for unacceptable risks and preferred risk treatment approaches are determined.

Completed
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A risk managementplan is developed and communicated to key stakeholders to ensure clarity and achievement of objectives throughout the activity's life cycle.

Completed
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Manage risk

  1. Activity is managed in accordance with agreed risk management plan.
  2. Performance is reviewed, variance is analysed and risk responses are initiated to achieve objectives with minimal disruption and conflict.
  3. Internal and external risks to outcomes are monitored and remedial actions are initiated to achieve business unit objectives.
Activity is managed in accordance with agreed risk management plan.

Completed
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Performance is reviewed, variance is analysed and risk responses are initiated to achieve objectives with minimal disruption and conflict.

Completed
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Internal and external risks to outcomes are monitored and remedial actions are initiated to achieve business unit objectives.

Completed
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Evaluate the risk management plan

  1. A valid and reliable evaluation methodology is developed and implemented.
  2. Outcomes are reviewed and analysed to assess the effectiveness of current risk management strategies.
  3. Evaluation is used to monitor existing risks, identify new risks and identify any trouble spots.
  4. A variety of information, including the perspectives of key stakeholders, is obtained and utilised.
  5. Recommendations on enhancements to the plan are formulated and acted upon to inform subsequent risk management processes.
  6. The outcomes of evaluation are communicated to relevant personnel.
A valid and reliable evaluation methodology is developed and implemented.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Outcomes are reviewed and analysed to assess the effectiveness of current risk management strategies.

Completed
Date:

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Evidence:

 

 

 

 

 

 

 

Evaluation is used to monitor existing risks, identify new risks and identify any trouble spots.

Completed
Date:

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Evidence:

 

 

 

 

 

 

 

A variety of information, including the perspectives of key stakeholders, is obtained and utilised.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

Recommendations on enhancements to the plan are formulated and acted upon to inform subsequent risk management processes.

Completed
Date:

Teacher:
Evidence:

 

 

 

 

 

 

 

The outcomes of evaluation are communicated to relevant personnel.

Completed
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Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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:

PSPETHC601B Maintain and enhance confidence in public service

PSPGOV601B Apply government systems

PSPGOV602B Establish and maintain strategic networks

PSPLEGN601B Manage compliance with legislation in the public sector

PSPMNGT602B Manage resources

PSPMNGT604B Manage change

PSPMNGT605B Manage diversity

PSPMNGT609B Formulate business strategies

PSPMNGT611A Manage evaluations

PSPMNGT612A Review and improve business performance

PSPMNGT613A Develop partnering arrangements

PSPMNGT614A Facilitate knowledge management

PSPPOL603A Manage policy implementation

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 risk in a range of (2 or more) contexts (or occasions, over time)

Resources required to carry out assessment

These resources include:

legislation, policy, procedures and protocols relating to risk management

Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised

Guidelines for managing risk in the Australian and New Zealand public sector - HB 143:1999 or as revised

other national and international standards relating to risk management such as SIRCA 8001:2003

case studies and workplace scenarios to capture the range of risk management 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 risk, including coping with difficulties, irregularities and breakdowns in routine

management of risk in a range of (2 or more) contexts (or occasions, over time)

Assessment methods should reflect workplace demands, such as literacy, and the needs of particular target 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

projects

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

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:

applying legislation, regulations and policies relating to risk management

researching and analysing the wider context affecting the organisation

assessing and evaluating risks

monitoring and reviewing risks and risk treatments

using communication and consultation with a diverse range of stakeholders

applying problem solving using conceptual and reasoning skills

using formal language and style for written plans

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

responding to diversity, including gender and disability

applying procedures relating to occupational health and safety and environment in the context of risk management

Knowledge requirements

Look for evidence that confirms knowledge and understanding of:

legislation, regulations, policies, procedures and guidelines relating to risk management

Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised

international standards such as SIRCA 8001:2003

Guidelines for managing risk in the Australian and New Zealand public sector - HB 143:1999 or as revised

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

whole-of-life considerations

approval processes

range of evaluation methodologies

the diversity of risks in the public sector

equal employment opportunity, equity and diversity principles

public sector legislation such as occupational health and safety and environment in the context of risk management

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 bold italics in the Performance Criteria is explained here.

Business unit may refer to:

a program

sub-program

cost centre

area

division

branch

production unit or section located within the organisation

Organisational context may include:

the organisation, how it is organised, and its capabilities

any official resources, including physical areas and assets, that are vital to the operation of the organisation

key operational elements and services of the organisation

any major projects

Strategic and risk management context may include:

the relationship between the organisation and the environment in which it operates

the organisation's functions:

political

operational

financial

social

legal

commercial

the various stakeholders and clients

Stakeholders may include:

employees

managers

volunteers

unions

financial managers

self-insurers

clients

suppliers

contractors

service providers

community organisations

the public

Risk management:

is a logical and systematic process of identifying, analysing, evaluating, treating, and monitoring risks related to any strategy plan, process, program or procedure that will enable the organisation to minimise losses and maximise opportunities

may be considered in relation to an organisation's:

people

assets and physical environment

reputation and image

legal issues

business continuity

finances

may include written procedures to ensure staff know:

what

how

when, and

by whom, action is to be taken to treat risks in the organisation

Risk evaluation criteria are:

used to rank risks and decide whether they are acceptable or not

affected by:

legal requirements

perceptions of internal/external stakeholders

cost-benefit analysis, for example, cost of risk management being less than financial cost if the risk occurred

Legislation, policy and procedures may include:

Commonwealth and State/Territory legislation relating to risk management

national and international codes of practice and standards, such as SIRCA 8001:2003

the organisation's risk management policies and practices

codes of conduct/codes of ethics

Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised

Guidelines for managing risk in the Australian and New Zealand public sector - HB 143:1999 or as revised

professional standards for risk management, for example CPRM - certified practising risk manager

jurisdictional policies, guidelines and web sites, for example www.riskmanagement.qld.gov.au

Sources of risk may include:

human behaviour

technology/technical issues

occupational health and safety

legal

political

property/equipment

environmental

financial/market

natural events

Risks may be:

internal

external

random

real

perceived

Risks may include:

physical injury or death

failure of machinery or equipment

breaches of security

fraud

litigation

client dissatisfaction

unfavourable publicity

Analysis of risks includes:

likelihood of risks:

almost certain

likely

possible

unlikely

rare

consequences of risks:

insignificant

minor

moderate

major

catastrophic

current control measures

Documentation of analysis may include:

table showing all risks, any existing controls, likelihood of occurring, consequences and subsequent level of risk

Level of risk may be:

low, treated with routine procedures

moderate, with specific responsibility allocated for the risk, and monitoring and response procedures implemented

high, requiring action, as it has potential to be damaging to the organisation

extreme, requiring immediate action, as the potential could be devastating to the organisation

Methods/techniques/ tools may include:

computer modelling

sensitivity analysis

structured interviews

statistical data

questionnaires

fault trees

analysis of consequences - loss of money, time, labour, intangibles

Acceptable risks are:

those which an organisation has determined have the least potential for harm

not necessarily insignificant

Risks may be acceptable because:

the risk level is so low that it does not warrant spending time and money to treat it

the risk is low and the benefits outweigh the cost of treating it

the opportunities presented are much greater than the threat

Unacceptable risks are:

those which an organisation has determined have the most potential for harm

Options for treating risks may include:

avoiding the risk, for example, by terminating the activity or conducting it in another way (these actions may have different risks attached)

controlling the risk, by reducing the likelihood of the risk occurring, the consequences of the risk, or both

transferring the risk, for example, by arranging insurance, contracting some or all of the activity to another organisation or person, etc

retaining the risk, and making contingency plans/funds allocation for covering any loss or other negative effect from the risk

Risk management plan may include:

sources of risk and risk events

analysis of risks - likelihood, consequences and risk levels

prioritised list of unacceptable risks

treatment options selected

person/s responsible for implementing treatment options

resources required

performance measures

timeframe for implementation

timetable for review of plan

Evaluation methodology may include:

observations

physical inspections

incident reports

questionnaires

interviews with stakeholders

regular reviews of risk treatment procedures

repeat of the risk management process