Unit of competency details

BSBRSK501B - Manage risk (Release 1)


Usage recommendation:
Is superseded by and equivalent to BSBRSK501 - Manage riskUpdated to meet Standards for Training Packages 24/Mar/2015
Supersedes and is equivalent to BSBRSK501A - Manage riskThis unit replaces BSBRSK501A Manage risk. Revised unit. Required knowledge updated to incorporate current Australian Standards. 27/Nov/2011

ReleaseRelease date
1 1 (this release) 28/Nov/2011

Training packages that include this unit

CodeSort Table listing Training packages that include this unit by the Code columnTitleSort Table listing Training packages that include this unit by the Title columnRelease
FPI11 - Forest and Forest Products Training PackageForest and Forest Products Training Package 1.1-2.3 
FNS10 - Financial Services Training PackageFinancial Services Training Package 5.0-5.1 
SIT12 - Tourism, Travel and Hospitality Training PackageTourism, Travel and Hospitality Training Package 1.0-2.0 
CPC08 - Construction, Plumbing and Services Training PackageConstruction, Plumbing and Services Training Package 8.0-9.2 
CPP07 - Property Services Training PackageProperty Services Training Package 10.0-15.0 
BSB07 - Business Services Training PackageBusiness Services Training Package 6.0-9.0 
CUV - Arts and Culture Training PackageArts and Culture Training Package 1.0 
DEF - Defence Training PackageDefence Training Package 1.0-2.0 
CUA - Creative Arts and Culture Training PackageCreative Arts and Culture Training Package 1.0 
AHC10 - Agriculture, Horticulture and Conservation and Land ManagementAgriculture, Horticulture and Conservation and Land Management 4.0-8.0 
SFI11 - Seafood Industry Training PackageSeafood Industry Training Package 1.1-2.2 
HLT - HealthHealth 1.0-1.3 
RGR08 - Racing Training PackageRacing Training Package 1.1-2.0 

Qualifications that include this unit

CodeSort Table listing Qualifications that include this unit by the Code columnTitleSort Table listing Qualifications that include this unit by the Title columnUsage RecommendationRelease
SIT60212 - Advanced Diploma of EventsAdvanced Diploma of EventsSuperseded1-3 
SIT50312 - Diploma of HospitalityDiploma of HospitalitySuperseded1-3 
CPP50711 - Diploma of Access ConsultingDiploma of Access ConsultingSuperseded2-4 
CPP60112 - Advanced Diploma of Spatial Information ServicesAdvanced Diploma of Spatial Information ServicesDeleted
SIT60313 - Advanced Diploma of HospitalityAdvanced Diploma of HospitalitySuperseded
FNS51511 - Diploma of Credit ManagementDiploma of Credit ManagementSuperseded
BSB50807 - Diploma of International BusinessDiploma of International BusinessSuperseded2-4 
TLI60110 - Advanced Diploma of Materiel LogisticsAdvanced Diploma of Materiel LogisticsSuperseded
BSB50507 - Diploma of FranchisingDiploma of FranchisingSuperseded2-4 
CUA50513 - Diploma of Live Production DesignDiploma of Live Production DesignSuperseded
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Accredited courses that have this unit in the completion mapping

CodeSort Table listing Accredited courses that have this unit in the completion mapping by the Code columnTitleSort Table listing Accredited courses that have this unit in the completion mapping by the Title columnStatus
10526NAT - Diploma of Contract ManagementDiploma of Contract Management Non-Current
10574NAT - Diploma of MinistryDiploma of Ministry Non-Current
22200VIC - Advanced Diploma of JusticeAdvanced Diploma of Justice Non-Current
22279VIC - Advanced Diploma of International BusinessAdvanced Diploma of International Business Non-Current
10332NAT - Diploma of Risk Management and Business ContinuityDiploma of Risk Management and Business Continuity Non-Current
10060NAT - Advanced Diploma of International Hotel and Resort ManagementAdvanced Diploma of International Hotel and Resort Management Non-Current
52693WA - Advanced Diploma of Map YouAdvanced Diploma of Map You Non-Current
22284VIC - Diploma of Business (Public Relations)Diploma of Business (Public Relations) Non-Current
30924QLD - Advanced Diploma of Environmental ManagementAdvanced Diploma of Environmental Management Non-Current


SchemeCodeClassification value
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  

Classification history

SchemeCodeClassification valueStart dateEnd date
ASCED Module/Unit of Competency Field of Education Identifier 080301 Business Management  12/Apr/2012 
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Modification History



Release 1

This version first released with BSB07 Business Training Package version 6.0.

Revised unit. Required knowledge updated to incorporate current Australian Standards.

Replaces BSBRSK501A Manage risk

Unit Descriptor

This unit describes the performance outcomes, skills and knowledge required to manage risks in a range of contexts across the organisation or for a specific business unit or area.

Application of the Unit

This unit addresses the management of the risk across the organisation or within a business unit or area. It does not assume any given industry setting.

This unit applies to individuals who are working in positions of authority and are approved to implement change across the organisation, business unit, program or project area. They may or may not have responsibility for directly supervising others.

Licensing/Regulatory Information

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


Not applicable.

Employability Skills Information

This unit contains employability skills.

Elements and Performance Criteria Pre-Content


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.

Elements and Performance Criteria

1. Establish risk context

1.1 Review organisational processes, procedures and requirements for undertaking risk  management

1.2 Determine scope  for risk management process

1.3 Identify internal and external stakeholders and their issues

1.4 Review political, economic, social, legal, technological and policy context

1.5 Review strengths and weaknesses of existing arrangements

1.6 Document critical success factors, goals or objectives for area included in scope

1.7 Obtain support for risk management activities

1.8 Communicate with relevant parties  about the risk management process and invite participation

2. Identify risks

2.1 Invite relevant parties to assist in the identification of risks

2.2 Research  risks that may apply to scope

2.3 Use tools and techniques  to generate a list of risks that apply to the scope, in consultation with relevant parties

3. Analyse risks

3.1 Assess likelihood  of risks occurring

3.2 Assess impact or consequence  if risks occur

3.3 Evaluate  and prioritise risks for treatment

4. Select and implement treatments

4.1 Determine and select most appropriate options  for treating risks

4.2 Develop an action plan  for implementing risk treatment

4.3 Communicate risk management processes to relevant parties

4.4 Ensure all documentation is in order and appropriately stored

4.5 Implement and monitor action plan

4.6 Evaluate risk management process

Required Skills and Knowledge

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

Required skills 

  • communication and literacy skills to consult and negotiate, to prepare communications about risk management, and to encourage stakeholder involvement
  • organisational and management skills to plan and implement risk management processes
  • problem-solving and innovation skills to find practical ways to manage identified risks.

Required knowledge 

  • AS/NZS ISO 31000:2009 Risk Management - Principles and Guidelines
  • legislation, codes of practice and national standards, for example:
  • duty of care
  • company law
  • contract law
  • environmental law
  • freedom of information
  • industrial relations law
  • privacy and confidentiality
  • legislation relevant to organisation’s operations
  • legislation relevant to operation as a business entity
  • organisational policies and procedures, including:
  • risk management strategy
  • policies and procedures for risk management
  • overall operations of organisation
  • reasonable adjustment in the workplace for people with a disability
  • types of available insurance and insurance providers.

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:

  • risk management plan which includes a detailed stakeholder analysis, explanation of the risk context, critical success factors, identified and analysed risks, and treatments for prioritised risks
  • details of monitoring arrangements for risk management plan and an evaluation of the risk management plan’s efficacy in treating risks
  • knowledge of relevant legislation, codes of practice and national standards.

Context of and specific resources for assessment 

Assessment must ensure:

  • access to workplace documentation.

Method of assessment 

A range of assessment methods should be used to assess practical skills 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
  • observation of presentations
  • oral or written questioning to assess knowledge of risk management policies and procedures
  • review of documented critical success factors, and goals or objectives for area
  • review of risks prioritised for treatment
  • evaluation of action plan for implementing risk treatment
  • evaluation of documentation communicating risk management processes to relevant parties.

Guidance information for assessment 

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

  • financial management units, governance units, human resource management units, or technology units.

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.

Risks  may include those relating to:

  • commercial relationships
  • economic circumstances and scenarios
  • human behaviour
  • individual activities
  • legislation
  • management activities and controls
  • natural events
  • political circumstances
  • technology.

Scope  may apply to:

  • given project
  • specific business unit or area
  • specific functional such as:
  • financial management
  • OHS
  • governance
  • external environment
  • internal environment
  • whole organisation.

Relevant parties  may include:

  • all staff
  • internal and external stakeholders
  • senior management
  • specific teams or business units
  • technical experts.

Research  may include:

  • data or statistical information
  • information from other business areas
  • lessons learned from other projects or activities
  • market research
  • previous experience
  • public consultation
  • review of literature and other information sources.

Tools and techniques  may include:

  • brainstorms
  • checklists
  • fishbone diagrams
  • flowcharts
  • scenario analysis.

Likelihood  may refer to:

  • probability of a given risk occurring, such as:
  • very likely
  • likely
  • possible
  • unlikely
  • rare.

Impact or consequence  may refer to:

  • significance of outcomes if the risk occurs, such as:
  • disastrous
  • severe
  • moderate impact
  • minimal impact.

Evaluation  of risks includes:

  • considering the likelihood of the risk occurring
  • considering the impact of the risk
  • determining which risks are most significant and are therefore priorities for treatment.

Options  may include:

  • avoiding the risk
  • changing the consequences
  • changing the likelihood
  • retaining the risk
  • sharing the risk with a third party.

Action plans  should include:

  • what actions are required
  • who is taking responsibility
  • time lines
  • monitoring processes.

Unit Sector(s)

Management and Leadership – Management

Custom Content Section

Not applicable.