Application
This unit describes the skills and knowledge required to identify business risks and to apply established risk management processes to a defined area of operations that are within the responsibilities and obligations of the work role.
The unit applies to individuals with a broad knowledge of risk analysis or project management who contribute well developed skills in creating solutions to unpredictable problems through analysis and evaluation of information from a variety of sources. They may have responsibility to provide guidance or delegate aspects of these tasks to others. Risks applicable to own work responsibilities and area of operation may include projects being undertaken individually or by a team, or operations within a section of the organisation.
No licensing, legislative or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
1. Identify risks | 1.1 Identify context for risk management 1.2 Undertake required steps to identify risks 1.3 Document identified risks according to relevant policies, procedures, legislation and standards |
2. Analyse and evaluate risks | 2.1 Analyse risks in consultation with relevant stakeholders 2.2 Undertake risk categorisation and determine level of risk 2.3 Document analysis processes and outcomes |
3. Treat risks | 3.1 Identify control measures for risks 3.2 Assess strengths and weaknesses of control measures 3.3 Refer risks to relevant personnel, where required, according to policies and procedures 3.4 Select and implement control measures for personal area of operation and responsibilities |
4. Monitor and review effectiveness of risk treatments | 4.1 Review implemented treatments against measures of success 4.2 Use review results to improve the treatment of risks 4.3 Monitor and review management of risk in personal area of operation |
Evidence of Performance
The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to apply organisational policies, procedures and processes to:
treat at least three risks by:
identifying different types of organisational risks
consulting with stakeholders to analyse and evaluate risks
implementing control measures
referring risks that are beyond own area of responsibility to others
maintaining risk management documentation.
Evidence of Knowledge
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
legislative and regulatory context of the organisation in relation to risk management
techniques for identifying and evaluating risks
organisational policies and procedures for risk management
areas where risks are commonly identified in an organisation
risks beyond scope of individual responsibility to be referred to relevant organisational personnel
purpose and key elements of current risk management standards.
Assessment Conditions
Skills in this unit must be demonstrated in a workplace or simulated environment where the conditions are typical of those in a working environment in this industry.
This includes access to:
legislation, regulations, standards and codes relating to business risk
workplace documentation on selected organisational risks.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Learning | Uses analysis and consultative processes to inform decisions about selection and implementation of risk control measures Evaluates effectiveness of plans and results to inform improvement decisions |
Reading | Comprehends documents and texts of varying complexity to extract and analyse relevant information |
Writing | Uses specific, industry related terminology and logical organisational structure in workplace documents that identify and analyse risk and report management process outcomes |
Oral communication | Participates effectively in interactions with stakeholders by using questioning and listening to elicit opinions and clarify understanding |
Numeracy | Uses numerical tools to assess risk and uses numerical data to review plans |
Enterprise and initiative | Complies with organisational and legislative requirements Takes responsibility for identification and management of risk within own work context and refers matters to others as required |
Teamwork | Selects appropriate communication protocols and conventions when conferring with others to establish risk management requirements |
Planning and organising | Determines job sequence and works logically and systematically to undertake defined tasks |
Technology | Uses familiar digital technologies and systems to access information, prepare plans and communicate with others |
Sectors
Business Competence – Business Operations