Application
This unit describes the skills and knowledge required to manage risks that may impact achievement of project objectives. It involves identifying, analysing, treating and monitoring project risks, and assessing risk management outcomes.
The unit applies to individuals responsible for managing and leading a project in an organisation, business, or as a consultant.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Elements and Performance Criteria
1. Identify project risks | 1.1 Identify risk objectives and standards, with input from stakeholders 1.2 Identify project risk context to inform risk management processes 1.3 Identify project risks using valid and reliable risk identification methods |
2. Analyse project risks | 2.1 Identify risk analysis classification criteria and apply to agreed risk ranking system 2.2 Use risk analysis processes, within delegated authority, to analyse and qualify any risks, threats and opportunities 2.3 Identify risk priorities in agreement with project client and other stakeholders 2.4 Document risk analysis outcomes for inclusion in risk register and risk management plan |
3. Establish risk treatments and controls | 3.1 Identify and document existing risk controls 3.2 Analyse risk treatment options using agreed consultative methods 3.3 Record and implement agreed risk treatments 3.4 Update risk plans and allocate risk responsibilities to project team members |
4. Monitor and control project risks | 4.1 Establish risk review processes 4.2 Monitor risk environment and identify changed circumstances impacting project risks 4.3 Evaluate risk responses to changed environment 4.4 Implement agreed risk responses and modify plans |
5. Assess risk management outcomes | 5.1 Review project outcomes for effectiveness of risk-management processes and procedures 5.2 Develop recommended improvements for application in future projects 5.3 Identify and document risk management issues and recommended improvements for application to future projects |
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:
manage project risk on at least two occasions.
In the course of the above, the candidate must:
conduct effective risk management processes for a project of sufficient complexity
apply risk management techniques, strategies and tools.
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:
project risks in a range of risk categories
key components of a risk management plan
relevant project risk controls
industry sector risk classifications and different risk contexts
organisational and industry standard risk frameworks
project risk-management processes and procedures
characteristics, techniques and applications of quantitative and qualitative risk management techniques and approaches.
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:
workplace documentation and resources
feedback from project stakeholders about how risks were managed.
Assessors of this unit must satisfy the requirements for assessors in applicable vocational education and training legislation, frameworks and/or standards.
Foundation Skills
Reading | Interprets and critically analyses complex texts from a range of sources and determines how content may be applied according to organisational requirements |
Writing | Documents risk analysis and risk controls using required formats and structure Modifies and updates workplace documentation according to requirements |
Oral Communication | Participates in verbal exchanges using clear language to provide and seek information Uses active listening and questioning techniques to confirm understanding |
Numeracy | Analyses numerical data to identify project risk levels and rank risks according to agreed system of classification |
Self-management | Identifies and adheres to organisational policies and standards Considers own role in terms of its contribution to broader goals of work environment |
Teamwork | Selects and uses appropriate conventions and protocols when communicating with internal and external stakeholders to seek or share information Identifies requirements of important communication exchanges, selecting appropriate channels, format and content to suit purpose and audience |
Planning and organising | Identifies and develops approaches to risk management and implements complex tasks to achieve outcomes Analyses information to make decisions, involving others when appropriate Uses formal and informal processes to monitor implementation of decisions and reflect on outcomes |
Sectors
Business Competence – Project Management