ELEMENTS 

PERFORMANCE CRITERIA 

Elements describe the essential outcomes

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Establish the risk context.

1.1. Establish the nature and extent of the work activity.

1.2. Identify and document outcomes to be achieved.

1.3. Analyse the relationship between the work activity and its environment and identify critical factors in the environment that may impact on the achievement of outcomes.

1.4. Identify and consult stakeholders to understand their opinions, concerns and needs.

1.5. Determine risk evaluation criteria for the activity.

2. Identify risks.

2.1. Select method(s) for identifying risks in accordance with organisational policies and procedures.

2.2. Identify and document sources of risk.

2.3. Identify and record risk events related to each source.

2.4. Consult to ensure all possible risks are identified.

3. Analyse risks.

3.1. Analyse and rate the probability of identified risks occurring and consequences.

3.2. Consider current control measures for any of the identified risks in the risk analysis and analyse and include residual risks if necessary.

3.3. Determine levels of risk in accordance with organisational procedures.

3.4. Consult to confirm risk levels, and document analysis.

4. Evaluate risks.

4.1. Evaluate risks against established risk evaluation criteria.

4.2. Determine potential and actual losses which may arise from the risk.

4.3. Determine benefits and opportunities presented by the risk.

4.4. Identify risks as acceptable or unacceptable in accordance with risk evaluation criteria and obtain approval.

4.5. Prioritise unacceptable risks and document the reasons for acceptance of risks.

5. Treat risks.

5.1. Determine options for treating risks.

5.2. Select the best treatment option and undertake a cost-benefit analysis.

5.3. Prepare and communicate a risk treatment plan to relevant personnel.

5.4. Negotiate changes to operational structure, procedures or staffing to implement risk treatments.

5.5. Organise resources and implement risk treatment plan.

6. Monitor and review risk treatment plan.

6.1. Monitor changes in the organisational environment and factors impacting risks and existing risk treatments.

6.2. Monitor changes in the work environment and make required adjustments to risk treatments for unacceptable risks.

6.3. Monitor acceptable risks to ensure these risk levels do not increase.

6.4. Consult and collect, analyse and use data relating to risks and risk treatments to improve risk management in own area of operation.

6.5. Review and update risk treatment plan in accordance with timetable for review of plan.

6.6. Provide input into formal reviews of risk in the organisation to improve risk management outcomes.

Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement. 

SKILLS 

DESCRIPTION 

Reading skills to:

• interpret and apply information from range of sources to identify, monitor and review manage risk functions and processes.

Numeracy skills to:

• interpret and apply mathematical data to monitoring, review and evaluation processes.