BSBRSK501A: Manage risk

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. The unit has been designed to be consistent with AS/NZS 4360:2004 Risk management.
No licensing, legislative, regulatory or certification requirements apply to this unit at the time of endorsement.
Employability Skills: This unit contains Employability Skills
Application: 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.
Competency Field: Management and Leadership – Management

Element	Performance Criteria
Elements define the essential outcomes of a unit of competency.	The Performance Criteria specify the level of performance required to demonstrate achievement of the Element. Terms in bold italics are elaborated in the Range Statement.
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 describes the essential skills and knowledge and their level required for this unit.

Essential knowledge:

The candidate must be able to demonstrate essential knowledge required to effectively perform task skills; task management skills; contingency management skills and job/role environment skills as outlined in elements and performance criteria of this unit
These include knowledge of:

AS/NZS 4360:2004 Risk management.
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.

Essential 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
problem‑solving and innovation skills to find practical ways to manage identified risks.

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. Add any 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.

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 inlcude:	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

Evidence Guide

The evidence guide provides advice on assessment and must be read in conjunction with the Performance Criteria, Required Skills and Knowledge, the Range Statement and the Assessment Guidelines for this Training Package.