Modification History
Release |
TP Version |
Comments |
3 |
PSP12V1 |
Unit descriptor edited. |
2 |
PSP04V4.2. |
Layout adjusted. No changes to content. |
1 |
PSP04V4.1 |
Primary release. |
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.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication
Application of the Unit
Not applicable.
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Not applicable.
Employability Skills Information
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
This section describes the essential skills and knowledge and their level, required for this unit. |
Skill requirements Look for evidence that confirms skills in:
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Knowledge requirements Look for evidence that confirms knowledge and understanding of:
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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. |
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Units to be assessed together |
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Overview of evidence requirements |
In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:
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Resources required to carry out assessment |
These resources include:
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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:
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:
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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
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 bold italics in the Performance Criteria is explained here. |
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Business unit may refer to: |
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Organisational context may include: |
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Strategic and risk management context may include: |
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Stakeholders may include: |
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Risk management : |
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Risk evaluation criteria are: |
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Legislation, policy and procedures may include: |
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Sources of risk may include: |
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Risks may be: |
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Risks may include: |
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Analysis of risks includes: |
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Documentation of analysis may include: |
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Level of risk may be: |
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Methods/techniques/ tools may include: |
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Acceptable risks are: |
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Risks may be acceptable because: |
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Unacceptable risks are: |
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Options for treating risks may include: |
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Risk management plan may include: |
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Evaluation methodology may include: |
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Unit Sector(s)
Not applicable.
Competency field
Management.