BSBRSK501B Manage risk

Release: 1

BSBRSK501B Manage risk

Modification History

Release	Comments
Release 1	This version first released with BSB07 Business Training Package version 6.0. Revised unit. Required knowledge updated to incorporate current Australian Standards. Replaces BSBRSK501A Manage risk

Unit Descriptor

This unit describes the performance outcomes, skills and knowledge required to manage risks in a range of contexts across the organisation or for a specific business unit or area.

Application of the Unit

This unit addresses the management of the risk across the organisation or within a business unit or area. It does not assume any given industry setting.

This unit applies to individuals who are working in positions of authority and are approved to implement change across the organisation, business unit, program or project area. They may or may not have responsibility for directly supervising others.

Licensing/Regulatory Information

No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.

Pre-Requisites

Not applicable.

Employability Skills Information

This unit contains employability skills.

Elements and Performance Criteria Pre-Content

Element	Performance Criteria
Elements describe the essential outcomes of a unit of competency.	Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

Elements and Performance Criteria

1. Establish risk context	1.1 Review organisational processes, procedures and requirements for undertaking risk management 1.2 Determine scope for risk management process 1.3 Identify internal and external stakeholders and their issues 1.4 Review political, economic, social, legal, technological and policy context 1.5 Review strengths and weaknesses of existing arrangements 1.6 Document critical success factors, goals or objectives for area included in scope 1.7 Obtain support for risk management activities 1.8 Communicate with relevant parties about the risk management process and invite participation
2. Identify risks	2.1 Invite relevant parties to assist in the identification of risks 2.2 Research risks that may apply to scope 2.3 Use tools and techniques to generate a list of risks that apply to the scope, in consultation with relevant parties
3. Analyse risks	3.1 Assess likelihood of risks occurring 3.2 Assess impact or consequence if risks occur 3.3 Evaluate and prioritise risks for treatment
4. Select and implement treatments	4.1 Determine and select most appropriate options for treating risks 4.2 Develop an action plan for implementing risk treatment 4.3 Communicate risk management processes to relevant parties 4.4 Ensure all documentation is in order and appropriately stored 4.5 Implement and monitor action plan 4.6 Evaluate risk management process

Required Skills and Knowledge

This section describes the skills and knowledge required for this unit.

Required skills

communication and literacy skills to consult and negotiate, to prepare communications about risk management, and to encourage stakeholder involvement

organisational and management skills to plan and implement risk management processes

problemsolving and innovation skills to find practical ways to manage identified risks.

Required knowledge

AS/NZS ISO 31000:2009 Risk Management - Principles and Guidelines

legislation, codes of practice and national standards, for example:

duty of care

company law

contract law

environmental law

freedom of information

industrial relations law

privacy and confidentiality

legislation relevant to organisation’s operations

legislation relevant to operation as a business entity

organisational policies and procedures, including:

risk management strategy

policies and procedures for risk management

overall operations of organisation

reasonable adjustment in the workplace for people with a disability

types of available insurance and insurance providers.

Evidence Guide

The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment
Critical aspects for assessment and evidence required to demonstrate competency in this unit	Evidence of the following is essential: risk management plan which includes a detailed stakeholder analysis, explanation of the risk context, critical success factors, identified and analysed risks, and treatments for prioritised risks details of monitoring arrangements for risk management plan and an evaluation of the risk management plan’s efficacy in treating risks knowledge of relevant legislation, codes of practice and national standards.
Context of and specific resources for assessment	Assessment must ensure: access to workplace documentation.
Method of assessment	A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit: direct questioning combined with review of portfolios of evidence and third party workplace reports of onthejob performance by the candidate observation of presentations oral or written questioning to assess knowledge of risk management policies and procedures review of documented critical success factors, and goals or objectives for area review of risks prioritised for treatment evaluation of action plan for implementing risk treatment evaluation of documentation communicating risk management processes to relevant parties.
Guidance information for assessment	Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example: financial management units, governance units, human resource management units, or technology units.

Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Risks may include those relating to:	commercial relationships economic circumstances and scenarios human behaviour individual activities legislation management activities and controls natural events political circumstances technology.
Scope may apply to:	given project specific business unit or area specific functional such as: financial management OHS governance external environment internal environment whole organisation.
Relevant parties may include:	all staff internal and external stakeholders senior management specific teams or business units technical experts.
Research may include:	data or statistical information information from other business areas lessons learned from other projects or activities market research previous experience public consultation review of literature and other information sources.
Tools and techniques may include:	brainstorms checklists fishbone diagrams flowcharts scenario analysis.
Likelihood may refer to:	probability of a given risk occurring, such as: very likely likely possible unlikely rare.
Impact or consequence may refer to:	significance of outcomes if the risk occurs, such as: disastrous severe moderate impact minimal impact.
Evaluation of risks includes:	considering the likelihood of the risk occurring considering the impact of the risk determining which risks are most significant and are therefore priorities for treatment.
Options may include:	avoiding the risk changing the consequences changing the likelihood retaining the risk sharing the risk with a third party.
Action plans should include:	what actions are required who is taking responsibility time lines monitoring processes.

Unit Sector(s)

Management and Leadership – Management

Custom Content Section

Not applicable.