Modification History
Not applicable.
Unit Descriptor
|
Unit descriptor |
This unit covers maximising results and minimising consequences for a business unit activity by managing risk. It includes establishing the risk management context, planning for risk management, managing risk and evaluating the risk management plan. In practice, managing risk may overlap with other generalist or specialist public sector work activities such as acting ethically, complying with legislation, applying government systems, managing resources, managing change, managing diversity, formulating business strategies, etc. The unit is one of 4 in the Working in Government and Management Competency fields dealing with risk. Related units are: PSPGOV417A Identify and treat risks PSPGOV517A Coordinate risk management PSPMNGT704A Undertake enterprise risk management This unit replaces and is equivalent to PSPMNGT608A Manage risk . |
Application of the Unit
Not applicable.
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Not applicable.
Employability Skills Information
|
Employability skills |
This unit contains employability skills. |
Elements and Performance Criteria Pre-Content
|
Elements are the essential outcomes of the unit of competency. |
Together, performance criteria specify the requirements for competent performance. Text in bold italics is explained in the Range Statement following. |
Elements and Performance Criteria
|
ELEMENT |
PERFORMANCE CRITERIA |
|
1 . Establish the risk management context |
1.1 The nature and extent of business unit activity, its objectives and outcomes are established within the organisational context 1.2 The strategic and risk management context are identified in accordance with organisational requirements 1.3 Stakeholders are identified and consulted to ensure their views, concerns and needs are taken into account in the risk management process 1.4 Criteria for risk assessment are determined in accordance with legislation , policy and procedures 1.5 Risk management criteria are determined to provide guidance on balancing risk, costs, benefits and opportunities 1.6 Risk management criteria are monitored, reviewed and adjusted to ensure opportunities and current and emerging trends are reflected |
|
2 . Plan for risk management |
2.1 Sources of risk are investigated and potential, perceived and actual risks are identified and consulted upon to ensure full coverage 2.2 Risks are analysed and documented in consultation with stakeholders, and levels of risk are determined as the basis for risk management planning in a specific activity 2.3 Risk management methods /techniques /tools are selected and modified as necessary to evaluate risks to determine those that are acceptable and those that are unacceptable 2.4 Risk treatment options are identified for unacceptable risks and preferred risk treatment approaches are determined 2.5 A risk management plan is developed and communicated to key stakeholders to ensure clarity and achievement of objectives throughout the activity's life cycle |
|
3 . Manage risk |
3.1 Activity is managed in accordance with agreed risk management plan 3.2 Performance is reviewed, variance is analysed and risk responses are initiated to achieve objectives with minimal disruption and conflict 3.3 Internal and external risks to outcomes are monitored and remedial actions are initiated to achieve business unit objectives |
|
4 . Evaluate the risk management plan |
4.1 A valid and reliable evaluation methodology is developed and implemented 4.2 Outcomes are reviewed and analysed to assess the effectiveness of current risk management strategies 4.3 Evaluation is used to monitor existing risks, identify new risks and identify any trouble spots 4.4 A variety of information, including the perspectives of key stakeholders, is obtained and utilised 4.5 Recommendations on enhancements to the plan are formulated and acted upon to inform subsequent risk management processes 4.6 The outcomes of evaluation are communicated to relevant personnel |
Required Skills and Knowledge
|
REQUIRED SKILLS AND KNOWLEDGE |
|
This section describes the essential skills and knowledge and their level, required for this unit. |
|
Skill requirements Look for evidence that confirms skills in: applying legislation, regulations and policies relating to risk management researching and analysing the wider context affecting the organisation assessing and evaluating risks monitoring and reviewing risks and risk treatments using communication and consultation with a diverse range of stakeholders applying problem solving using conceptual and reasoning skills using formal language and style for written plans engaging in discussion using exchange of complex oral information using a variety of words and language structures to explain complex, formal documents and assisting others to apply them in the workplace responding to diversity, including gender and disability applying procedures relating to occupational health and safety and environment in the context of risk management |
|
Knowledge requirements Look for evidence that confirms knowledge and understanding of: legislation, regulations, policies, procedures and guidelines relating to risk management Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised international standards such as SIRCA 8001:2003 Guidelines for managing risk in the Australian and New Zealand public sector - HB 143:1999 or as revised risk management cycle the relationship of risk to context - how the context may define the risks the importance of consultation and communication at every stage of the risk management cycle legal requirements related to the activity whole-of-life considerations approval processes range of evaluation methodologies the diversity of risks in the public sector equal employment opportunity, equity and diversity principles public sector legislation such as occupational health and safety and environment in the context of risk management |
Evidence Guide
|
EVIDENCE GUIDE |
|
|
The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package. |
|
|
Units to be assessed together |
Co -assessed units that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to: PSPETHC601B Maintain and enhance confidence in public service PSPGOV601B Apply government systems PSPGOV602B Establish and maintain strategic networks PSPLEGN601B Manage compliance with legislation in the public sector PSPMNGT602B Manage resources PSPMNGT604B Manage change PSPMNGT605B Manage diversity PSPMNGT609B Formulate business strategies PSPMNGT611A Manage evaluations PSPMNGT612A Review and improve business performance PSPMNGT613A Develop partnering arrangements PSPMNGT614A Facilitate knowledge management PSPPOL603A Manage policy implementation |
|
Overview of evidence requirements |
In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms: the knowledge requirements of this unit the skill requirements of this unit application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)
|
|
Resources required to carry out assessment |
These resources include: legislation, policy, procedures and protocols relating to risk management Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised Guidelines for managing risk in the Australian and New Zealand public sector - HB 143:1999 or as revised other national and international standards relating to risk management such as SIRCA 8001:2003 case studies and workplace scenarios to capture the range of risk management situations likely to be encountered |
|
Where and how to assess evidence |
Valid assessment of this unit requires:
Assessment methods should reflect workplace demands, such as literacy, and the needs of particular target groups, such as: people with disabilities people from culturally and linguistically diverse backgrounds Aboriginal and Torres Strait Islander people women young people older people people in rural and remote locations Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of: case studies portfolios projects questioning scenarios authenticated evidence from the workplace and/or training courses |
|
For consistency of assessment |
Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments |
Range Statement
|
RANGE STATEMENT |
|
|
The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in italics in the Performance Criteria is explained here. |
|
|
Business unit may refer to |
|
|
Organisational context may include |
the organisation, how it is organised, and its capabilities any official resources, including physical areas and assets, that are vital to the operation of the organisation key operational elements and services of the organisation any major projects |
|
Strategic and risk management context may include |
the relationship between the organisation and the environment in which it operates the organisation's functions: political operational financial social legal commercial the various stakeholders and clients |
|
Stakeholders may include |
employees managers volunteers unions financial managers self-insurers clients suppliers contractors service providers community organisations the public |
|
Risk management |
may include written procedures to ensure staff know: what how
|
|
Risk evaluation criteria are |
used to rank risks and decide whether they are acceptable or not affected by: legal requirements perceptions of internal/external stakeholders cost-benefit analysis, for example, cost of risk management being less than financial cost if the risk occurred |
|
Legislation , policy and procedures may include |
Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised
|
|
Sources of risk may include |
human behaviour technology/technical issues occupational health and safety legal political property/equipment environmental financial/market natural events |
|
Risks may be |
internal external random real perceived |
|
Risks may include |
physical injury or death failure of machinery or equipment breaches of security fraud litigation client dissatisfaction unfavourable publicity |
|
Analysis of risks includes |
likelihood of risks: almost certain likely possible unlikely rare consequences of risks: insignificant minor moderate major catastrophic current control measures |
|
Documentation of analysis may include |
table showing all risks, any existing controls, likelihood of occurring, consequences and subsequent level of risk |
|
Level of risk may be |
low, treated with routine procedures moderate, with specific responsibility allocated for the risk, and monitoring and response procedures implemented high, requiring action, as it has potential to be damaging to the organisation extreme, requiring immediate action, as the potential could be devastating to the organisation |
|
Methods /techniques / tools may include |
|
|
Acceptable risks are |
those which an organisation has determined have the least potential for harm not necessarily insignificant |
|
Risks may be acceptable because |
the risk level is so low that it does not warrant spending time and money to treat it the risk is low and the benefits outweigh the cost of treating it the opportunities presented are much greater than the threat |
|
Unacceptable risks are |
those which an organisation has determined have the most potential for harm |
|
Options for treating risks may include |
avoiding the risk, for example, by terminating the activity or conducting it in another way (these actions may have different risks attached) controlling the risk, by reducing the likelihood of the risk occurring, the consequences of the risk, or both transferring the risk, for example, by arranging insurance, contracting some or all of the activity to another organisation or person, etc retaining the risk, and making contingency plans/funds allocation for covering any loss or other negative effect from the risk |
|
Risk management plan may include |
sources of risk and risk events analysis of risks - likelihood, consequences and risk levels prioritised list of unacceptable risks treatment options selected person/s responsible for implementing treatment options resources required performance measures timeframe for implementation timetable for review of plan |
|
Evaluation methodology may include |
observations physical inspections incident reports questionnaires interviews with stakeholders regular reviews of risk treatment procedures repeat of the risk management process |
Unit Sector(s)
Not applicable.
Competency field
|
Competency field |
Management |
