Modification History
Release |
TP Version |
Comments |
3 |
PSP12V1 |
Unit descriptor edited. |
2 |
PSP04V4.2 |
Layout adjusted. No changes to content. |
1 |
PSP04V4.1 |
Primary release. |
Unit Descriptor
This unit covers the identification and treatment of risk using the organisation's risk management procedures and treatments. It applies to the risks inherent in all aspects of everyday work in the public sector as well as to specific functional activities and projects related to the particular mandate of the organisation. The unit covers establishment of the risk context, identification, analysis and evaluation of risks, risks treatment, and monitoring and review of risk treatment plan.
In practice, identifying and treating risk occurs in the context of other generalist or specialist public sector work activities such as acting ethically, complying with legislation, applying government processes, handling classified information, using resources, administering projects, providing parliamentary support, making arrests, using financial processes, undertaking scientific research, awarding contracts, undertaking native title assessments, assessing compensation claims, road transport compliance, etc.
This is one of 4 units of competency in the Working in Government and Management Competency Fields that deal with risk. Related units are:
- PSPGOV517A Coordinate risk management
- PSPMNGT608B Manage risk
- PSPMNGT704A Undertake enterprise risk management
- No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication
Application of the Unit
Not applicable.
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Not applicable.
Employability Skills Information
This unit contains employability skills.
Elements and Performance Criteria Pre-Content
Elements are the essential outcomes of the unit of competency. |
Together, performance criteria specify the requirements for competent performance. Text in bold italics is explained in the Range Statement following. |
Elements and Performance Criteria
ELEMENT |
PERFORMANCE CRITERIA |
1 . Establish the risk context |
1.1 The nature and extent of the work activity are established within the broader organisational context . 1.2 The outcomes to be achieved are identified and documented as required. 1.3 The relationship between the activity and its environment is analysed and critical factors in the environment that may impact on the achievement of outcomes are identified. 1.4 Stakeholders are identified and consulted to identify their opinions, concerns and needs related to the activity and the management of risks related to it. 1.5 Risk evaluation criteria are determined for the activity in accordance with legislation, policy and procedures related to risk management in the organisation. |
2 . Identify risks |
2.1 Method/s for identifying risks are selected in accordance with risk management policy and procedures, budgetary and time constraints relative to the type of activity to be undertaken. 2.2 Sources of risk are identified and documented as required. 2.3 Risk events related to each source of risk are identified and recorded in accordance with risk management policy and procedures. 2.4 Consultation and communication is undertaken to ensure all possible risks are identified. |
3 . Analyse risks |
3.1 The probability of identified risks occurring is analysed and rated in accordance with risk management policy and procedures. 3.2 The consequences of identified risks occurring are analysed and rated according to organisational procedures. 3.3 Current control measures for any of the identified risks are considered in the risk analysis, and residual risks are analysed and included if necessary. 3.4 Levels of risk are determined in accordance with risk matrix used by the organisation. 3.5 Consultation/communication is undertaken as required to confirm risk levels, and analysis is documented in accordance with organisational risk management procedures. |
4 . Evaluate risks |
4.1 Risks are evaluated by comparing the level of risk with risk evaluation criteria established at the beginning of the risk management process. 4.2 The importance of the activity, its outcomes and the degree of control over the risks are considered. 4.3 Potential and actual losses which may arise from the risk are considered. 4.4 Benefits and opportunities presented by the risk are taken into account. 4.5 Risks are identified as acceptable or unacceptable in accordance with risk evaluation criteria, and confirmation/approval is obtained in accordance with risk management policy and procedures. 4.6 Unacceptable risks are prioritised and the reason/s for acceptance of risks is documented. |
5 . Treat risks |
5.1 Options for treating risks are determined in accordance with risk management policy and procedures. 5.2 The best treatment option is selected and a cost-benefit analysis is undertaken to compare the cost of implementing the treatment with the benefits. 5.3 A risk treatment plan is prepared, approved and communicated to those who will be involved in implementation. 5.4 Changes required to operational structure, procedures or staffing in order to implement risk treatments are negotiated in accordance with organisational policy and procedures. 5.5 Resources are arranged and risk treatment plan is implemented in accordance with risk management policy and procedures. |
6 . Monitor and review risk treatment plan |
6.1 Changes in the organisational environment and factors impacting on the organisation are monitored for their impact on risks and existing risk treatments. 6.2 Risk treatments for unacceptable risks are monitored and adjusted as required to ensure they remain effective. 6.3 Acceptable risks are monitored to ensure these risk levels do not increase over time. 6.4 Consultations are conducted and data relating to risks and risk treatments are collected, analysed and used to improve risk management in own area of operation. 6.5 Risk treatment plan is reviewed in accordance with timetable for review of plan and updated as required. 6.6 Input is provided into formal reviews/audits of risk in the organisation to improve risk management outcomes. |
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:
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Knowledge requirements Look for evidence that confirms knowledge and understanding of:
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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. |
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Units to be assessed together |
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Overview of evidence requirements |
In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:
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Resources required to carry out assessment |
These resources include:
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Where and how to assess evidence |
Valid assessment of this unit requires:
Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as:
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:
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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 |
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. |
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Organisational context may include: |
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Environmental factors may be: |
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Stakeholders may include: |
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Risk evaluation criteria are: |
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Legislation , policy and procedures may include: |
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Risk management: |
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Methods for identifying risks may include: |
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Risks may include: |
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Risks may be: |
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Sources of risk may include: |
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Risk events are: |
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Probability of identified risk may be: |
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Consequences of identified risk may be: |
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Control measures may: |
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Level of risk may be: |
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Documentation of analysis may include: |
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Acceptable risks are: |
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Risks may be acceptable because: |
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Unacceptable risks are: |
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Options for treating risks may include: |
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Risk treatment plan may include: |
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Resources may include: |
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Changes may mean that: |
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Unit Sector(s)
Not applicable.
Competency field
Working in Government.