Unit of competency details
SITXCRI002 - Manage a business continuity crisis (Release 1)
Summary
Usage recommendation:
Superseded
Releases:
| 1 1 (this release) |
03/Mar/2016 |
Companion volumes:
Unit of competency
Assessment requirements
Training packages that include this unit
Qualifications that include this unit
Accredited courses that have this unit in the completion mapping
Classifications
Classification history
| ASCED Module/Unit of Competency Field of Education Identifier | 080301 | Business Management | 09/Aug/2016 | |
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Unit of competency
Modification History
Not applicable.
Application
This unit describes the performance outcomes, skills and knowledge required to identify the ramifications of a crisis on business continuity and to respond with strategies that ensure the financial viability of the organisation. It requires the ability to identify and interpret information relevant to the crisis and the business operation, and to assess and adapt business operations to manage the crisis.
Managing business continuity is a complex process which involves the use of a range of interrelated skills, such as financial analysis, budgeting, developing operational plans and adapting the provision of products to meet the needs of a market in crisis. These skills are covered in other units.
This unit applies to all tourism, travel, hospitality and event sectors and to any size organisation. The crisis could be of a magnitude that affects the operation of an entire organisation, department or particular project.
It applies to senior managers and owner-operators who operate with significant autonomy and are responsible for making a range of strategic management decisions.
No occupational licensing, certification or specific legislative requirements apply to this unit at the time of publication.
Pre-requisite Unit
Nil
Competency Field
Crisis Management
Unit Sector
Cross-Sector
Elements and Performance Criteria
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ELEMENTS
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PERFORMANCE CRITERIA
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Elements describe the essential outcomes.
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Performance criteria describe the performance needed to demonstrate achievement of the element.
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1. Identify and acknowledge the crisis.
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1.1.Consider impacts on business operation through early identification of triggers for a downturn in business.
1.2.Access and interpret information relevant to crisis.
1.3.Identify and acknowledge internal and external crises.
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2. Assess impacts on the viability of the business.
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2.1.Involve key people in assessment of crisis.
2.2.Review organisational documents to determine current financial and operational status of business.
2.3.Produce new financial forecasts based on known information about crisis.
2.4.Produce a range of forecast options based on reasonable and worst case predictions of impacts.
2.5.Monitor severity of crisis and adjust forecasts according to swiftly changing circumstances.
2.6.Determine severity of business impacts and develop recommendations to ensure financial viability of organisation.
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3. Adapt business operations to manage the crisis.
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3.1.Develop and implement emergency operational plan to manage the crisis.
3.2.Involve key people in managing business crisis and integrate their perspectives.
3.3.Implement accepted recommendations for changing business operations.
3.4.Communicate new practices to key people including external suppliers.
3.5.Re-align staffing arrangements to control wage costs.
3.6.Gain staff confidence in current managerial activity and commitment to the business in crisis.
3.7.Re-align products and services to meet current market needs.
3.8.Re-negotiate with suppliers to achieve optimum profitability during crisis.
3.9.Implement promotional and public relations activities to ensure consumer confidence.
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4. Monitor and evaluate business operations.
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4.1.Monitor business activity and profitability throughout all stages of crisis.
4.2.Seek internal and external feedback on effectiveness of emergency business operations.
4.3.Identify and respond to inadequacies in emergency operational plan to account for changing circumstances.
4.4.Continually adapt business operations to ensure business continuity.
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Foundation Skills
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Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement.
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SKILLS
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DESCRIPTION
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Reading skills to:
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- interpret complex and unfamiliar reports about external crises and complex internal business management plans and reports
- research the internal and external factors that impact on business performance.
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Writing skills to:
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- prepare clear, accurate and complex emergency operational plans.
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Oral communication skills to:
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- consult with others on complex operational, financial and management issues
- communicate difficult operational changes.
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Numeracy skills to:
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- interpret and analyse financial information from forecasts and previous performance data
- develop financial estimates and scenarios.
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Problem-solving skills to:
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- evaluate the severity of crisis impacts on business operations and re-align practices to ensure the financial viability of the organisation
- react to swiftly changing circumstances.
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Planning and organising skills to:
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- manage a cohesive and changeable response to crises and produce reports within tight timelines.
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Self-management skills to:
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- take responsibility for managing a business in crisis and for the outcomes of emergency management practices.
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Technology skills to:
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- use accounting software packages.
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Unit Mapping Information
SITXCRI601 Manage a business continuity crisis
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=68c40a93-e51d-4e0f-bc06-899dff092694
Assessment requirements
Modification History
Not applicable.
Performance Evidence
Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and:
- identify and assess ramifications of at least two internal and two external crises on business continuity
- demonstrate the following for each of the above internal or external crises on business continuity:
- develop a clear, accurate and complex emergency operational plan
- assess and adapt business operations to manage business continuity
- implement the emergency operational plan and monitor, evaluate and adapt the plan based on outcomes.
Knowledge Evidence
Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:
- trigger factors for downturns in tourism, travel, hospitality and event business:
- changes in the length and regularity of holidays taken by the source market
- changes in the popularity of:
- destinations
- style of tourism, travel and hospitality products
- budget or premium product
- closure of major transport suppliers:
- airlines
- coach companies
- cruise operators
- closure of the operation of multiple suppliers in a destination
- downturn in local economic growth
- global financial downturn
- impending economic recession or crisis
- in destinations used by the business, warnings of impending:
- natural disasters
- political and civil uprisings
- terrorism acts
- wars
- ramifications of an internal crisis on business continuity:
- breakdown or complete failure of key equipment
- accident, death, major injury or illness, or repatriation of a customer, tour guide or tour manager
- destruction of infrastructure
- failure of marketing program
- financial loss through non-compliance with the law or litigation
- death, family crisis, fraud, long term illness or professional incompetence of a key employee
- media coverage of business accident, incident or impending failure
- major work health and safety accident or near miss incident
- ramifications of an external crisis on business continuity:
- breakdown or complete failure of supplier equipment
- plane crash
- for destinations used by the business:
- chemical spill
- civil uprising
- destruction of tourism infrastructure
- health epidemics or pandemics
- natural disaster
- outbreak of war or political coup
- radiation leak
- terrorism
- financial recession or crisis for the source market
- industrial dispute
- specific industry sector:
- key characteristics of internal and external crises
- impacts of crises on the provision of products and services and business viability
- historical impacts of crises on tourism, hospitality and event operations
- major triggers for a downturn in customer sales
- consultative mechanisms commonly used by organisations
- promotion and public relations activities commonly used by organisations during a crisis
- role of key external people and organisations in managing a business crisis
- techniques to adapt business operations to manage a business in crisis
- roles and responsibilities of key staff members and external consultants
- contents and role of organisational documents in managing the business
- key people involved in the assessment of a business continuity crisis:
- business accountants
- customers and their families
- colleagues
- consultants:
- crisis management
- marketing
- public relations
- financial controllers
- insurance brokers and providers
- legal representatives
- suppliers
- travel insurance providers
- organisational documents to determine current financial and operational status of a business:
- brochures
- budgets
- business plans
- current contracts relating to current financial and operational business matters
- customer surveys
- financial reports and forecasting
- product costings and published tariffs and price lists
- reports
- tenders, proposals or bids
- terms and conditions for credit provision
- provision of products and services to customers
- possible recommendations to ensure financial viability of businesses in continuity crisis:
- cancelling impending departures to affected destinations
- cancelling unprofitable products or services
- closing particular departments
- moving premises to a less costly location
- price rises or reductions
- re-aligning product style and pricing to meet current market needs
- reducing staff hours, or staff redundancies
- sale of equipment
- scaling promotional activities up or down
- temporary cancellation of products in affected destinations
- temporary closure of affected locations
- formats for and inclusions in emergency operational plans
- features and functions of financial software programs for preparing and monitoring financial reports.
Assessment Conditions
Skills must be demonstrated in a tourism, travel, hospitality or event industry business operation or event facing a business continuity crisis. This can be:
- an industry workplace
- a simulated industry environment.
Assessment must ensure access to:
- computers, software programs, printers and communication technology used to administer crisis management
- current commercial plans and financial reports
- crisis information:
- emergency services reports
- health advisory notices and vaccination information issued by local and international bodies
- industry associations and organisations
- industry journals
- informal discussions and networking with internal and external colleagues
- media reports on external crises
- press releases and emergency advice notices issued by:
- local, state, territory or federal governments
- destination marketing companies
- regional, state and national tourism offices
- franchisors
- staff, contractor, supplier reports on:
- accidents
- breakdown or complete failure of key equipment
- death
- injury
- major work health and safety incidents
- travel warning advice issued by the federal government for Australian travellers
- a team so that consultative actions can be implemented; this can be:
- team in an industry workplace who are assisted by the individual during the assessment process; or
- individuals who participate in role plays or simulated activities, set up for the purpose of assessment, in a simulated industry environment operated within a training organisation.
Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.
Links
Companion Volume implementation guides are found in VETNet - https://vetnet.gov.au/Pages/TrainingDocs.aspx?q=68c40a93-e51d-4e0f-bc06-899dff092694
