Unit of competency details

Unit descriptor 

This unit of competency specifies the outcomes required to develop, implement and evaluate a risk management system to ensure effective operations. It requires the ability to determine system requirements and identify and organise appropriate support processes to implement the system.

The unit may form part of the licensing requirements for persons working in the property industry, including in the real estate, business broking, stock and station agency and property operations and development sectors, in those States and Territories where these are regulated activities.

Application of the unit 

This unit of competency supports the work of those involved in developing, implementing and evaluating risk management systems in the property industry.

Prerequisite units 

Nil

Employability skills 

The required outcomes described in this unit of competency contain applicable facets of employability skills. The Employability Skills Summary of the qualification in which this unit of competency is packaged, will assist in identifying employability skills requirements.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the required performance needed to demonstrate achievement of the element. Where bold italicised  text is used, further information is detailed in the required skills and knowledge and/or the range statement. Assessment of performance is to be consistent with the evidence guide.

ELEMENT 

PERFORMANCE CRITERIA 

1 Determine system requirements .

1.1 Risk management context  is determined and risk management strategies are promoted to relevant people  according to organisational requirements .

1.2 Relevant documentation  and legislative requirements  are reviewed to identify critical requirements of risk management strategy.

1.3 Resource requirements  to facilitate achievement of risk management goals and objectives are identified and arranged.

1.4 Roles and responsibilities  for implementation of risk management activities are established according to risk management strategy.

2 Organise support processes .

2.1 Consultative processes are used to determine individual professional development requirements  according to organisational requirements.

2.2 Risk management processes requiring specialist support are identified and personnel or finance support is sought as required according to organisational requirements.

2.3 Systems to encourage communication  flow and feedback are established and maintained to ensure an accurate exchange of information between relevant people.

2.4 Administrative processes are analysed to ensure outcomes are accurately reported and recorded according to organisational requirements.

2.5 Assessment criteria  for measuring level of potential or existing risk  and assessment of consequences are developed according to terms of reference .

3 Monitor and maintain system .

3.1 Risk management system is systematically evaluated to maintain consistency and meet relevant legislative and organisational requirements.

3.2 Factors affecting achievement of risk management strategies  are identified, and required variations negotiated and agreed with relevant people.

3.3 Information, costs and statistics relating to risk management system are collected and analysed  according to organisational requirements.

3.4 Audits  for compliance for treatment of risks are undertaken according to risk management system requirements.

3.5 Changes to operating environment, and risk or threat to assets are monitored on an ongoing basis and corrective measures are identified and implemented according to risk management plan.

4 Review and report on system .

4.1 Risk management plan is reviewed against established criteria in consultation with relevant people to improve and modify future risk assessment practices.

4.2 Evaluation  processes incorporate strategies for review, evaluation and comparison of risk management strategies and processes, according to risk management plan.

4.3 Feedback  from relevant people regarding satisfaction with risk assessment practices is collected, analysed and included in evaluation process.

4.4 Business continuity plan  covering all aspects of continuity cycle is developed and provided to relevant people for comprehensive analysis.

4.5 Findings of analysis are incorporated into business continuity plan according to organisational requirements.

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the essential skills and knowledge and their level, required for this unit.

Required skills :

• communication skills to source and collate feedback
• computing skills to access the internet and web pages, prepare and complete online forms, lodge electronic documents and search online databases
• interpersonal skills to relate to people from a range of social, cultural and ethnic backgrounds and varying physical and mental abilities
• observation skills to identify existing or potential risks
• organisational skills to plan time lines and reporting mechanisms, record and file information and undertake audits
• presentation skills for information sessions and briefings
• problem solving skills to assess and treat risk, apply reasoning and logical analysis to measure risk consequence, and recommend countermeasures or business continuity plans
• research skills to analyse and interpret information and form recommendations
• technical skills to use necessary equipment to document risk management strategies.

Required knowledge and understanding :

• auditing requirements
• client and organisational confidentiality requirements
• concepts of litigation
• continuity cycle and associated aspects
• insurance policies, codes and operations
• mechanisms to obtain and analyse feedback
• organisational goals and objectives, activities and systems
• property operations' historical precedent regarding risk to operations
• relevant federal and state or territory legislation and local government regulations related to:

• anti-discrimination
• consumer protection
• environmental issues
• equal employment opportunity (EEO)
• financial probity
• franchise and business structures
• industrial relations
• OHS
• privacy
• property sales, leasing and management
• public safety

• relevant industry codes of practice and standards
• risk assessment techniques and processes.

Overview of assessment 

This unit of competency could be assessed through practical demonstration of developing, implementing and evaluating a risk management system to ensure effective operations. Targeted written (including alternative formats where necessary) or verbal questioning to assess the candidate's underpinning knowledge would provide additional supporting evidence of competence. The demonstration and questioning would include collecting evidence of the candidate's knowledge and application of ethical standards and relevant federal, and state or territory legislation and regulations. This assessment may be carried out in a simulated or workplace environment.

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

A person who demonstrates competency in this unit must be able to provide evidence of:

• maintaining required physical and human resources to support the risk management system
• knowledge of organisation's practices, ethical standards and legislative requirements associated with developing, implementing and evaluating a risk management system to ensure effective operations
• preparing a business continuity plan to cover emergency and disaster planning
• reviewing the risk management system to identify and implement improvements
• supporting staff to manage risk and implementing recovery processes where projected risks have eventuated.

Context of and specific resources for assessment 

Resource implications for assessment include:

• access to suitable simulated or real opportunities and resources to demonstrate competence
• assessment instruments that may include personal planner and assessment record book
• access to a registered provider of assessment services.

Where applicable, physical resources should include equipment modified for people with disabilities.

Access must be provided to appropriate learning and/or assessment support when required.

Assessment processes and techniques must be culturally appropriate, and appropriate to the language and literacy capacity of the candidate and the work being performed.

Validity and sufficiency of evidence require that:

• competency will need to be demonstrated over a period of time reflecting the scope of the role and the practical requirements of the workplace
• where the assessment is part of a structured learning experience the evidence collected must relate to a number of performances assessed at different points in time and separated by further learning and practice with a decision of competence only taken at the point when the assessor has complete confidence in the person's competence
• all assessment that is part of a structured learning experience must include a combination of direct, indirect and supplementary evidence
• where assessment is for the purpose of recognition (RCC/RPL), the evidence provided will need to be current and show that it represents competency demonstrated over a period of time
• assessment can be through simulated project-based activity and must include evidence relating to each of the elements in this unit.

In all cases where practical assessment is used it will be combined with targeted questioning to assess the underpinning knowledge. Questioning will be undertaken in such a manner as is appropriate to the language and literacy levels of the candidate and any cultural issues that may affect responses to the questions, and will reflect the requirements of the competency and the work being performed.

Risk management context  may relate to:

• business operations
• competitors
• economic climate
• human and physical assets of organisation
• organisational strengths and weaknesses
• previous history of organisational operations.

Relevant people  may include:

• agents
• clients
• colleagues
• emergency personnel
• government personnel
• internal and external specialists in risk management
• legal representatives
• members of industry associations
• OHS representatives
• property owners
• subcontractors
• supervisors
• tenants.

Organisational requirements  may be outlined and reflected in:

• access and equity principles and practice guidelines
• complaint and dispute resolution procedures
• emergency and evacuation procedures
• employer and employee rights and responsibilities
• goals, objectives, plans, systems and processes
• legal and ethical requirements and codes of practice
• mission statements and strategic plans
• OHS policies, procedures and programs
• policies and procedures in relation to client service
• quality and continuous improvement processes and standards
• quality assurance and procedure manuals
• records and information systems and processes.

Documentation  may relate to:

• audit tools and schedules
• checklists
• resource lists
• risk register.

Legislative requirements  may be outlined and reflected in:

• Australian standards
• codes of practice covering the market sector and industry, financial transactions, taxation, environment, construction, land use, native title, zoning, utilities use (water, gas and electricity), and contract or common law
• home building requirements
• privacy requirements
• quality assurance and certification requirements
• relevant federal, and state or territory legislation that affects organisational operation, including:

• anti-discrimination and diversity
• environmental issues
• EEO
• industrial relations
• OHS

• strata, community and company titles
• tenancy agreements
• trade practices laws and guidelines.

Resource requirements  may include:

• briefings and information sessions
• training
• information in paper-based or electronic format
• risk analysis tools.

Roles and responsibilities  may be influenced by:

• codes of conduct
• job description and employment arrangements
• organisational policy relevant to work role
• skills, training and competencies
• supervision requirements, including OHS
• team structures.

Professional development requirements  may relate to:

• coaching, mentoring and supervising
• formal and informal learning programs
• identifying and establishing new career paths
• updating and maintaining knowledge base on current issues for work and professional practice
• using existing strengths to focus future career development
• work rotation to facilitate changing work priorities.

Communication  may include using channels such as:

• direct line supervision paths
• lateral supervision paths
• organisational communication protocols and procedures
• organisational networks.

Assessment criteria  may be based on:

• Australian Risk Management Standards
• organisational or client requirements
• qualitative and quantitative factors
• semi-quantitative factors.

Potential or existing risk  may include:

• commercial and legal relationships
• deliberate, natural, accidental or perceived
• industry special risks
• loss of goodwill, reputation or credibility
• loss of profits
• loss, disclosure, destruction or compromise of asset
• machinery malfunction
• OHS
• public liability
• trade practices issues
• unpredictable asset performance.

Terms of reference  may relate to:

• agreed timeframe
• client expectations
• cost
• limitations and exclusions
• operational environment
• roles and responsibilities
• scale of the task or assessment (whether a full-scale operation or limited to a particular section or operation of the company)
• security and other clearances.

Factors affecting achievement of risk management strategies  may relate to:

• availability of tools to implement system
• required learning needs
• resistance to change
• resources.

Analysed :

• may be:

• explorative, descriptive, causative or predictive
• quantitative and qualitative

• and may include:

• basic statistical analysis
• critical analysis
• mathematical calculations
• problem solving.

Audits  may be:

• according to documented schedules in risk management strategy
• undertaken by trained staff or external auditors.

Evaluation  methods could be qualitative or quantitative and may include:

• checklists
• cost data analysis
• expert review
• interviews
• observation
• questionnaires
• review of quality assurance data.

Feedback  may include:

• formal and informal discussions, reviews and evaluations with:

• existing and previous clients
• peers, colleagues and managers

• information provided by others involved in a professional capacity, both internal and external to the organisation.

Business continuity plan  may cover aspects such as:

• full recovery
• resilient design
• resilient operations
• salvage
• service restoration.

Unit sector 

Property development, sales and management

Competency field 

Property operations and development