Application
This unit describes the skills required to manage risks associated with all stages of procurement. It includes assessing risk, and preparing, implementing and reviewing a risk management plan.
This unit applies to those working as public sector staff in roles that involve managing procurement risks.
The skills and knowledge described in this unit must be applied within the legislative, regulatory and policy environment in which they are carried out. Organisational policies and procedures must be consulted and adhered to.
Those undertaking this unit would work autonomously while performing complex tasks, in familiar contexts.
No licensing, legislative or certification requirements apply to unit at the time of publication.
Elements and Performance Criteria
ELEMENTS | PERFORMANCE CRITERIA |
Elements describe the essential outcomes | Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the range of conditions section. |
1. Assess risk | 1.1 Identify legislation, policies, business processes and resources impacting the contract. 1.2 Identify procurement outcomes and internal inputs required. 1.3 Identify and confirm critical success factors required. 1.4 Identify non trivial procurement risks. 1.5 Identify potential probity risks. 1.6 Analyse causes of risk and their potential impact. 1.7 Determine likelihood and consequences of risks and develop risk assessments. |
2. Prepare risk management plan | 2.1 Develop preliminary risk management plan to address risks identified in planning phase. 2.2 Identify acceptable risks and those requiring treatment. 2.3 Design treatments to reduce risks to an acceptable level. 2.4 Develop plans for implementing new treatments, additional risk controls or modifications to existing controls. 2.5 Monitor risk level at key points during procurement process and, review and adjust risk management plan to cover procurement activity risks not already identified. |
3. Implement and review risk management plan | 3.1 Implement risk controls and treatments according to the treatment plan. 3.2 Implement risk management plan, monitor and revise to include potential or emerging risks during the life of the procurement activity. 3.3 Improve risk treatments and controls using review results. |
Evidence of Performance
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the candidate must demonstrate evidence of performance of the following on at least one occasion.
writing risk management plans using templates or a recognised risk management methodology
interpreting complex, formal documents
making verbal and written recommendations about the management of procurement and contracting risks
analysing risks associated with procurement and contract
managing and updating the risk management plan
learning skills to keep up-to-date with relevant procurement legislation, policies and procedures
Evidence of Knowledge
Evidence required to demonstrate competence must satisfy all of the requirements of the elements and performance criteria. If not otherwise specified the depth of knowledge demonstrated must be appropriate to the job context of the candidate.
Commonwealth, state or territory, and local government legislation, policies, practices and guidelines relating to contract risk management
organisational procurement policies, practices and approval processes
risk management procedures
probity principles and issues, particularly as they relate to probity risks
codes of conduct, codes of practice and standards of individual behaviour relating to the procurement process
risks associated with financial and accounting issues relevant to procurement and contract management
supplier issues and supply chain management in the context of procurement risk management
aspects of law of contracts, trade practices law and commercial law relevant to risk management relating to complex procurement
equal employment opportunity relevant to procurement and contract management
environmental, sustainability and corporate social responsibility principles relevant to procurement and contract management
Assessment Conditions
This unit contains no specific industry-mandated assessment conditions. Guidance on suggested and recommended conditions and methods can be found in the Implementation Guide.
Assessors must satisfy the NVR/AQTF mandatory competency requirements for assessors
Foundation Skills
Foundation skills are embedded within the elements and performance criteria of this unit.
Competency Field
Procurement