Elements and Performance Criteria

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.

Risk-analysis methods may include:
risk categorisation
risk data quality assessment
risk likelihood and consequence ranking
risk urgency assessment.
Risk-management strategies may include:
accepting some or all of the consequences of a particular risk
avoiding the risk
mitigating the likelihood of the risk
sharing risk with another party
transferring risk to another party.
Risk-management plans may include:
definitions of risk likelihood and consequence
identified risks
methodologies
risk categories and priorities
risk context for project
roles and responsibilities in regard to risk management
stakeholder tolerances
tools for determining risk rank and priority
tracking risks.
Monitoring risks may include:
recommended corrective actions
recommended preventative actions
requested changes
reserve analysis
risk audits
risk reassessment
risk register and updates
status meetings
technical performance information
variance and trend analysis.
Risk-management approaches may include:
risk identification
risk quantification
risk response control
risk response development.
Delegated authority may be:
subject to frequent change in different project contexts
under limited guidance and supervision
within agreed authorisation and limits
within established organisational framework, procedures and routines.
Risk-contingency measures may include:
alternative project plans and approaches
degree of acceptable variation
planning for risk
project planning tolerances.
Opportunities may include:
better means of achieving a result
changes in the project or broader environment that offer scope for rescheduling activities to better effect
efficiencies or methods to work more effectively, such as ways of shortening an activity
initial project activities that reveal entirely different sets of priorities, for example product development, research and policy development
responses to changing commercial or competitive conditions.
Risk records may include:
lists of potential risk events
project and/or organisation files and records
risk analysis and reappraisal
risk diaries, risk registers, incident logs, occurrence reports and other such documentation
risk-management lessons learned
risk-management plan.

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:

applying risk-management techniques in relation to workplace projects
knowledge of risk-management methods, techniques and tools.
Context of and specific resources for assessment
Assessment must ensure access to:

examples of project-management documentation for risk management.
Method of assessment
A range of assessment methods should be used to assess practical skill and knowledge. The following assessment methods are appropriate for this unit:

direct questioning combined with review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate
analysis of responses addressing case studies and scenarios that present issues and problems in project risk management
oral or written questioning to assess knowledge of strategies for managing project risk and their application to different situations
review of risk-analysis methods, techniques and tools
review of risk-management plans
evaluation of reporting of risk-management issues and responses.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended.