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Evidence Guide: PSPPROC501A - Manage contract 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

 

PSPPROC501A - Manage contract risk

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

Assess risk

  1. Legislation, policies, business processes and resources impacting on the contract are identified
  2. Contract deliverables and internal inputs necessary for effective contract performance are identified
  3. Critical success factors necessary for the achievement of contract deliverables are identified and confirmed
  4. Non-trivial business risks relating to the contract are identified
  5. Causes of risk are analysed and their potential impact is determined
  6. Likelihood of risks is determined and risk ratings are developed
Legislation, policies, business processes and resources impacting on the contract are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Contract deliverables and internal inputs necessary for effective contract performance are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Critical success factors necessary for the achievement of contract deliverables are identified and confirmed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Non-trivial business risks relating to the contract are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Causes of risk are analysed and their potential impact is determined

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Likelihood of risks is determined and risk ratings are developed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Prepare risk management plan

  1. A preliminary risk management plan is developed that addresses risks identified in the planning phase of the contract
  2. Risks that will be accepted and those requiring treatment are identified
  3. Treatments that reduce risks to an acceptable level are designed in accordance with organisational requirements
  4. A plan for implementing new treatments, additional controls or modifications to existing controls is developed
  5. Where risks relate to the business context, risk management policies and procedures are reviewed and developed/amended
  6. Risk level is re-checked in the contract development phase, and the risk management plan is reviewed and adjusted to cover contract management risks not already identified
A preliminary risk management plan is developed that addresses risks identified in the planning phase of the contract

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risks that will be accepted and those requiring treatment are identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Treatments that reduce risks to an acceptable level are designed in accordance with organisational requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

A plan for implementing new treatments, additional controls or modifications to existing controls is developed

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Where risks relate to the business context, risk management policies and procedures are reviewed and developed/amended

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Risk level is re-checked in the contract development phase, and the risk management plan is reviewed and adjusted to cover contract management risks not already identified

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Implement and review risk management plan

  1. Risk controls and treatments are implemented in accordance with the treatment plan
  2. The risk management plan is implemented, and regularly reviewed and revised to include potential or emerging risks during the life of the contract
  3. Review results are used to improve risk treatments and controls
Risk controls and treatments are implemented in accordance with the treatment plan

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

The risk management plan is implemented, and regularly reviewed and revised to include potential or emerging risks during the life of the contract

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Review results are used to improve risk treatments and controls

Completed
Date:

Teacher:		 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:

PSPETHC501B Promote the values and ethos of public service

PSPGOV504B Undertake research and analysis

PSPGOV505A Promote diversity

PSPGOV511A Provide leadership

PSPGOV517A Coordinate risk management

PSPLEGN501B Promote compliance with legislation in the public sector

PSPPROC502A Establish contract management arrangements

PSPPROC503A Manage contract performance

PSPPROC504A Finalise contracts

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 contract risk in a range of (3 or more) contexts (or occasions, over time)

Resources required to carry out assessment

These resources include:

legislation, policy, procedures and protocols relating to contract risk management

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

management of contract risk in a range of (3 or more) contexts (or occasions, over time)

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

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

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:

analysing risks associated with procurement and contracting

interpreting complex, formal documents

writing plans requiring reasoning and precision of expression

responding to diversity, including gender and disability

applying occupational health and safety and environmental requirements in the context of contract risk management

Knowledge requirements

Look for evidence that confirms knowledge and understanding of:

Commonwealth/State/Territory Government legislation, policies, practices and guidelines relating to contract risk management, including environmental purchasing guidance

risk management procedures

probity principles and issues

risks associated with financial and accounting issues relevant to the contract

public sector legislation including occupational health and safety and environment

aspects of law of contracts, trade practices law and commercial law relevant to contract risk management relating to complex procurement

equal employment opportunity, equity and diversity principles

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 italics in the Performance Criteria is explained here.

Information sources used to assess risk may include

computer modelling

sensitivity analysis

structured interviews

statistical data

questionnaires

fault trees

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

Legislation and policies may include

Commonwealth and State/Territory legislation including equal employment opportunity and anti-discrimination law

national and international codes of practice and standards

the organisation's policies and practices

government policy

codes of conduct

national competition policy

Risk ratings

differentiate between risks that have:

high impact/consequence/likelihood and those having

lowimpact/consequence/likelihood

Risk management is

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

often considered in relation to an organisation's:

people

assets and physical environment

reputation and image

legal issues

business continuity

finances

stated outcomes

Risk controls may include

hierarchy of controls

aversion

risk mitigation

reduction in likelihood

reduction of consequences

transfer of responsibility

retention