Risk management

BSBRSK501 Manage risk

This unit is about managing risk. It can apply in various contexts across an organisation or for a specific business unit or area in any industry setting.

It 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.

How you will be assessed

You will be assessed through:

• Assessor observation on the job
• Supervisor reference (if the assessor is not the supervisor)
• Review of your workplace documents (e.g. procedures)
• Interview/assignment based on the requirements below.

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Practical

You will be assessed in a real situation on the job. It must be a safe environment with access to:

1. relevant legislation, regulations, standards and codes
2. relevant workplace documentation and resources
3. case studies and, where possible, real situations
4. interaction with others.

You need to show that you have:

1. Analysed information from a range of sources to identify the scope and context of the risk management process including:
1. stakeholder analysis
2. political, economic, social, legal, technological and policy context
3. current arrangements
4. objectives and critical success factors for the area included in scope
2. Identified risks that may apply to scope
3. Consulted and communicated with relevant stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management processes
4. Developed and implemented a plan to treat risks
5. Monitored and evaluated your plan and your risk management process
6. Maintained documentation.

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Interview/assignment questions

1. Outline the purpose and key elements of current risk management standards.
2. What risks do you need to manage to maintain compliance with the law?
3. What laws affect risk management in your organization?
4. What are your organization’s policies, procedures and processes for risk management?

Note: Your assessor may also ask you a variety of what if questions.

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Detailed requirements

1. Establish risk context

1. Review your organisation’s processes, procedures and requirements for managing risk according to current risk management standards
2. Determine the scope for risk management
3. Identify internal and external stakeholders and their issues
4. Review the political, economic, social, legal, technological and policy context
5. Review strengths and weaknesses of existing arrangements
6. Document critical success factors, goals or objectives for area included in scope
7. Gain support for risk management
8. Communicate with relevant parties about the risk management and invite them to participate

 

2. Identify risks

1. Invite relevant parties to help identify risks
2. Research risks that might apply to scope
3. Use tools and techniques to generate a list of risks that apply to the scope, in consultation with relevant parties

 

3. Analyse risks

1. Assess the likelihood of risks occurring
2. Assess the impacts or consequences if risks occur
3. Evaluate and prioritise risks for treatment

 

4. Select and implement treatments

1. Determine and select most appropriate options for treating risks
2. Develop a plan for treating risks
3. Communicate risk management to relevant parties
4. Ensure all documentation is in order and appropriately stored
5. Implement and monitor action plan
6. Evaluate the risk management process

 

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