Modification History
PSPMNGT704A Release 2: Layout adjusted. No changes to content.
PSPMNGT704A Release 1: Primary release.
Unit Descriptor
This unit covers development of a risk management culture in the organisation (embedding risk management within organisational culture) to maximise the strategic outcomes for the organisation from enterprise risk management - a whole of organisation approach to risk management. It includes influencing organisational culture and providing strategic direction in risk management.
In practice, undertaking enterprise risk management may occur in the context of other generalist or specialist public sector work activities such as providing strategic direction, leading change, providing leadership in human resources management, etc.
The unit is one of 4 in the Working in Government and Management Competency fields dealing with risk. Related units of competency are:
- PSPGOV417A Identify and treat risks
- PSPGOV517A Coordinate risk management
- PSPMNGT608B Manage risk
This is a new unit of competency, added to the Management Competency field of the Training Package in 2004.
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 . Influence organisational culture |
1.1 The strategic advantages of embedding risk management within organisational culture are promoted and reflected through the leadership position adopted on all matters related to the management of enterprise risk. 1.2 Risk management requirements and performance indicators are embedded in senior position profiles, organisational strategies, policies and plans to mainstream risk management as part of normal business operations rather than an added requirement. 1.3 Strategies are developed and implemented to promote knowledge sharing on risk and risk control across organisational functions. 1.4 Initiatives to embed risk management within organisational culture are supported and resourced in accordance with the legislation, policy, procedures and the overall enterprise risk management strategy. 1.5 Risk management training and awareness programs are resourced and embedded in induction and professional development opportunities provided to staff to support the development of a risk management culture. 1.6 Organisational culture, business outcomes and stakeholder feedback are monitored, and positive achievements related to risk management initiatives are identified and celebrated in accordance with organisational policy. |
2 . Provide strategic direction in risk management |
2.1 Future trends and issues that may impact on the organisation's risk management strategies are identified, analysed and communicated to senior management, business unit and line managers. 2.2 The impact of current and changing needs of the organisation is identified, and the development of strategies is initiated to address risk management at the enterprise level in accordance with organisational policy and procedures. 2.3 Strategic priorities for risk management in the organisation are developed to support overall government policies on risk management and to encourage staff to share information and think laterally in their approach to identifying and managing risks. 2.4 Strategic priorities are communicated to key stakeholders using a variety of strategies tailored to their needs and purposes and in such a way as to attract their support. 2.5 Key risk management stakeholders are kept informed, in a manner suited to their needs, of what constitutes best practice in the area of risk management and its potential impact on the organisation. |
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 |
PSPETHC701A Lead and influence ethical practice in the public sector PSPHR703A Provide leadership in strategic human resource management PSPMNGT701B Provide strategic direction PSPMNGT702A Influence and shape diversity management PSPMNGT703A Lead and influence change |
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 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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Strategic advantages of a risk management culture may include: |
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Risk management : |
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Legislation, policy and procedures may include: |
Australian and New Zealand standards - Risk management AS/NZS 4360:1999 or as revised
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Stakeholders may include: |
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Strategies to communicate with stakeholders may include: |
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Unit Sector(s)
Not applicable.
Competency field
Management.