Assessor Resource

PSPMNGT704A
Undertake enterprise risk management

Assessment tool

Version 1.0
Issue Date: December 2022


Not applicable.

This unit covers development of a risk management culture in the organisation (embedding risk management within organisational culture) to maximise the strategic outcomes for the organisation from enterprise risk management - a whole of organisation approach to risk management. It includes influencing organisational culture and providing strategic direction in risk management.

In practice, undertaking enterprise risk management may occur in the context of other generalist or specialist public sector work activities such as providing strategic direction, leading change, providing leadership in human resources management, etc.

The unit is one of 4 in the Working in Government and Management Competency fields dealing with risk. Related units of competency are:

PSPGOV417A Identify and treat risks

PSPGOV517A Coordinate risk management

PSPMNGT608B Manage risk

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

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)

Prerequisites

Not applicable.


Employability Skills

This unit contains employability skills.




Evidence Required

List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.

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:

PSPETHC701A Lead and influence ethical practice in the public sector

PSPHR703A Provide leadership in strategic human resource management

PSPMNGT701B Provide strategic direction

PSPMNGT702A Influence and shape diversity management

PSPMNGT703A Lead and influence change

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)

enterprise risk management 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

principles and practices of enterprise risk management

case studies and workplace scenarios to capture the range of situations likely to be encountered when undertaking enterprise risk management

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 undertaking enterprise risk management, including coping with difficulties, irregularities and breakdowns in routine

enterprise risk management undertaken 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

demonstration

observation

portfolios

projects

questioning

scenarios

simulation or role plays

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


Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)


Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

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 in the public sector

articulating models of cultural change and influencing key stakeholders to participate

influencing and consulting with others in the implementation of enterprise risk management

explaining complex concepts and gaining support for implementation

responding to diversity, including gender and disability

applying procedures relating to occupational health and safety and environment and sustainability 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

strategic approaches to risk management

the principles of enterprise risk management

models of cultural change

equal employment opportunity, equity and diversity principles

public sector legislation such as occupational health and safety and environmental requirements in the context of enterprise risk management

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.

Strategic advantages of a risk management culture may include:

increased ability to deal with continually evolving risks and opportunities

aggregated risk information for decision making, as opposed to reporting by function or business unit

alignment of strategy, people, technology and knowledge on an enterprise-wide basis

economic benefit

improved business performance

improved client service

innovative, creative staff who are not risk averse

greater capacity for flexibility and managed responsiveness to change

risk optimisation rather than risk minimisation

politically acceptable decision making

reduced resource wastage

improved sustainability

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

decision making approaches

processes/procedures

is being recognised as inseparable from strategy development, capital allocation and other core management processes

needs to be integrated into the management actions of staff at all levels of the organisation

at strategic or enterprise level overcomes a fragmented approach, such as managing risk by silos, and provides an integrated, aligned, holistic, synergistic and inclusive process

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

Stakeholders may include:

all those individuals and groups both inside and outside the organisation that have some direct interest in the organisation's behaviour, actions, products and services, including:

boards of management

clients

community organisations

contractors

employees at all levels of the organisation

government

Ministers

other public sector organisations

self-insurers

service providers

suppliers

the public

union and association representatives

volunteers

Strategies to communicate with stakeholders may include:

oral advice and guidance

one-on-one meetings

small group meetings

telephone contact and/or electronic mail

information presentations

written documentation

policy and procedure statements

guides

information brochures and pamphlets

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
The strategic advantages of embedding risk management within organisational culture are promoted and reflected through the leadership position adopted on all matters related to the management of enterprise risk. 
Risk management requirements and performance indicators are embedded in senior position profiles, organisational strategies, policies and plans to mainstream risk management as part of normal business operations rather than an added requirement. 
Strategies are developed and implemented to promote knowledge sharing on risk and risk control across organisational functions. 
Initiatives to embed risk management within organisational culture are supported and resourced in accordance with the legislation, policy, procedures and the overall enterprise risk management strategy. 
Risk management training and awareness programs are resourced and embedded in induction and professional development opportunities provided to staff to support the development of a risk management culture. 
Organisational culture, business outcomes and stakeholder feedback are monitored, and positive achievements related to risk management initiatives are identified and celebrated in accordance with organisational policy. 
Future trends and issues that may impact on the organisation's risk management strategies are identified, analysed and communicated to senior management, business unit and line managers. 
The impact of current and changing needs of the organisation is identified, and the development of strategies is initiated to address risk management at the enterprise level in accordance with organisational policy and procedures. 
Strategic priorities for risk management in the organisation are developed to support overall government policies on risk management and to encourage staff to share information and think laterally in their approach to identifying and managing risks. 
Strategic priorities are communicated to key stakeholders using a variety of strategies tailored to their needs and purposes and in such a way as to attract their support. 
Key risk management stakeholders are kept informed, in a manner suited to their needs, of what constitutes best practice in the area of risk management and its potential impact on the organisation. 

Forms

Assessment Cover Sheet

PSPMNGT704A - Undertake enterprise risk management
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Assessment Record Sheet

PSPMNGT704A - Undertake enterprise risk management

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