Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to manage factors that might adversely affect the project program and organisational outcomes. It covers directing the planning and management of project risks, managing risks to the overall program and assessing risk management outcomes for the program and the organisation.

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

Application of the unit 

A program is defined as a set of interrelated projects, each of which has a project manager. Multiple projects (sometimes called a portfolio of projects) refers to a number of projects related in some way and managed by the same person as a program to achieve a common organisational objective/s.

For the purposes of this unit someone who manages a suite of projects (a program) will be referred to as a program manager.

The functions performed by a project manager to manage risk within individual projects are addressed in BSBPMG508A Manage project risk.

Prerequisite units 

Employability skills 

This unit contains employability skills.

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.

ELEMENT 

PERFORMANCE CRITERIA 

1. Direct planning of project risk management

1.1. Direct potential, perceived and actual risk events for identification, documentation and analysis, in consultation with project managers and appropriate stakeholders, as the basis for project risk management planning 

1.2. Select and modify project risk management methods , techniques and tools  for project managers to analyse information, evaluate options and determine preferred risk approaches within the overall program environment

1.3. Direct development, communication and implementation of project risk management plans  and strategies to ensure clarity of understanding and achievement of project objectives across the program

1.4. Develop and maintain a project risk management system to enable effective management and communication of risk events, responses and results to stakeholders across projects within the program

2. Direct management of project risk and manage program risk

2.1. Manage the program in accordance with agreed project risk management plans

2.2. Review progress, analyse variance and initiate risk responses to achieve program and multiple project objectives in changing environments

2.3. Direct risks to multiple project outcomes for monitoring, and ensure remedial actions are authorised to achieve project objectives

3. Assess project and program risk management outcomes

3.1. Review and analyse project outcomes to assess the effectiveness of the project risk management system for projects, program and organisational outcomes

3.2. Aggregate, analyse and structure lessons learned, for project managers and senior management to undertake strategic review and planning

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• analytical skills to plan and review risk management approaches
• literacy skills to communicate decisions and to write quality reports
• initiative to identify and address risks leading to negative consequences for projects
• problem-solving skills to initiate risk responses in changing environments.

Required knowledge 

• risk management tools, frameworks, systems, methodologies and standards.

EVIDENCE GUIDE 

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 following is essential:

• demonstrated experience in successfully directing risk management efforts across a range of concurrent projects
• knowledge of risk management tools, frameworks, systems, methodologies and standards.

Context of and specific resources for assessment 

Assessment must ensure:

• access to workplace risk management documentation
• consideration of feedback from project teams and stakeholders as to how risks were managed.

Method of assessment 

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

• direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance of scope management techniques by the candidate
• analysis of responses addressing different project risk management case studies and scenarios
• oral or written questioning to assess knowledge of strategies for managing project risks and their application to different situations
• review of the development, communication and implementation of project risk management plans.

Guidance information for assessment 

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

• other units in the Advanced Diploma of Project Management.

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.

Risk management planning  may:

• be conducted substantially non-routinely to meet complex and changing circumstances
• be done independently or by taking the lead in a multiple projects team environment
• involve consultation with project managers and with selective involvement of stakeholders within and external to the organisation
• involve the selection, modification and direction of the use of appropriate risk management methods processes, procedures, tools and techniques
• take into account the impact of organisational and environmental change on the program and vice versa

Risk management methods , techniques and tools  may involve:

• assessing and reporting the potential impact of multiple projects' risk on the organisation
• calling upon personal experience and/or subject matter experts
• collating and using the products of specialist risk analysis to make program-wide risk management decisions
• conducting or directing qualitative and/or quantitative risk analysis, such as schedule simulation, decision analysis, contingency planning and alternative strategy development

Risk management plans  may include:

• assigned risk responsibilities
• contingency plans
• formal arrangements
• occupational health and safety (OHS) risks
• potential risk events
• preferred and alternative risk management strategies and actions
• responsibility assignment

Unit sector 

Competency field 

Management and Leadership - Project Management

Co-requisite units