Unit of competency details

Release 

Comments 

Release 1

This version first released with BSB07 Business Services Training Package Version 8.0.

Replaces BSBPMG508A Manage project risk.

Element 

Performance Criteria 

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.

1. Identify project risks

1.1 Determine risk objectives and standards , with input from stakeholders

1.2 Establish project risk context  to inform risk-management processes

1.3 Identify project risks  using valid and reliable risk-identification methods 

1.4 Classify project risks within agreed risk categories 

2. Analyse project risks

2.1 Determine risk-analysis classification criteria and apply to an agreed risk-ranking system 

2.2 Use risk-analysis processes, within delegated authority , to analyse and qualify risks, threats and opportunities

2.3 Determine risk priorities in agreement with project client and other stakeholders

2.4 Document risk-analysis outcomes for inclusion in risk register and risk-management plan 

3. Establish risk treatments and controls

3.1 Identify and document existing risk controls 

3.2 Consider and determine risk-treatment options  using agreed consultative methods

3.3 Record and implement agreed risk treatments

3.4 Update risk plans and allocate risk responsibilities to project team members

4. Monitor and control project risks

4.1 Establish regular risk-review processes  to maintain currency of risk plans

4.2 Regularly monitor risk environment to identify changed circumstances that impact on project risks

4.3 Determine risk responses  to changed environment

4.4 Implement agreed risk responses and modify plans to maintain currency of risk treatments and controls

5. Assess risk-management outcomes

5.1 Review project outcomes to determine effectiveness of risk-management processes and procedures

5.2 Identify and document risk-management issues and recommended improvements for application to future projects

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the following is essential:

• effective risk management for a project of sufficient complexity to demonstrate the full range of performance requirements
• applying risk-management techniques, strategies and tools.

Context of and specific resources for assessment 

Assessment must ensure:

• access to workplace risk-management documentation
• consideration of feedback from project 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 by the candidate
• oral or written questioning to assess knowledge of the risk-management framework
• analysis of responses in addressing case studies and scenarios that present issues and problems in project risk management
• review of risk-management plans
• evaluation of monitoring of progress against project plans
• assessment of identified and documented risk issues and recommended improvements.

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 Diploma of Project Management.

Standards  may include:

• Australian and international standards
• enterprise and industrial agreements
• industry codes of practice
• industry standards
• organisational and industrial agreements
• organisational policies, systems and procedures
• regulations and legislation.

Project risk context  may include:

• legislation and regulation controls
• nature of project
• organisational risk policies and procedures
• project environment
• stakeholder expectations.

Project risks  may include:

• predicted future events
• threats
• opportunities
• hazards.

Risk-identification methods  may include:

• conducting or supervising qualitative and/or quantitative risk analysis, such as schedule simulation, decision analysis, contingency planning and alternative strategy development
• lessons learned from previous projects
• personal experience input
• previous risk registers
• risk workshops
• subject matter experts
• using specialist risk-analysis tools to assist in the decision-making process.

Risk categories  may include:

• communications
• compliance
• consultative
• environmental
• finance
• health and safety
• human resources
• legal
• organisational brand
• physical
• political
• project assumptions
• project constraints
• project process risks
• quality
• social
• technology.

Risk-ranking system  may include:

• classification rankings from low to high
• consequence of risk scale
• impact of risk scale
• manual or software-based systems
• organisational risk policies and methods
• predetermined ranking criteria
• target and trigger settings.

Delegated authority  refers to planning and activities that may:

• be conducted routinely or as changing circumstances dictate
• be done independently within broad guidance
• involve consultation with other project members, teams and internal stakeholders
• involve taking a lead role in a team where required
• involve the selection, use and supervision of appropriate risk-management methods, tools and techniques.

Risk-management plan  may include:

• audit trail for risk management over project life cycle
• format of information
• organisation systems and risk methods
• manual and computerised systems
• risk register
• summary outcome of risk processes.

Risk controls  may include:

• accepted industry practice and codes of conduct
• existing risk planning actions
• legislation or regulation over processes
• modifications to plans and processes
• organisational risk policies and procedures
• quality systems
• work methods.

Risk-treatment options  may include:

• accept risk
• mitigate risk
• transfer or share risk
• avoid risk.

Risk-review processes  may include:

• ad hoc due to emergency events
• gateway or stage transition reviews
• ongoing through team member assigned responsibility
• regular risk discussions at project meetings
• scheduled formal reviews.

Risk responses  may be made:

• in consultation with project team members, section heads, project managers and stakeholders
• independently or with endorsement of higher project authority if necessary
• regularly throughout the project life cycle
• taking into account internal organisational change and external environmental change.