Unit of competency Outline

Date retreived
22/07/2026 9:57 PM AWST

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Manage a business continuity crisis

Manage a business continuity crisis

Unit of competency
National Code
SITXCRI601
State Code
WF753
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
18/01/2013
State Implementation and Classification
Approved Date
31/05/2013
Field of Education
080301 - Business Management
Original Release Date
31/05/2013
Nominal Hours
25
Description
This unit describes the performance outcomes, skills and knowledge required to identify the ramifications of a crisis on business continuity and to respond with strategies that ensure the financial viability of the organisation. It requires the ability to identify and interpret information relevant to the crisis and the business operation and to assess and adapt business operations to manage the crisis.Managing business continuity is a complex process which involves the use of a range of other interrelated skills, such as financial analysis, budgeting, developing operational plans and adapting the provision of products to meet the needs of a market in crisis. These skills are found within other units.
Notes
Elements and Performance Criteria
1. Identify and acknowledge the crisis.
  • 1.1 Consider impacts on business operation through early identification of triggers for a downturn in business.
  • 1.2 Access and interpret information relevant to the crisis.
  • 1.3 Identify and acknowledge internal and external crises.
2. Assess impacts on the viability of the business.
  • 2.1 Involve key people in the assessment of the crisis.
  • 2.2 Review organisational documents to ascertain current financial and operational status of the business.
  • 2.3 Produce new financial forecasts based on known information about the crisis.
  • 2.4 Produce a range of forecast options based on reasonable and worst case predictions of impacts.
  • 2.5 Monitor the severity of the crisis and adjust forecasts according to swiftly changing circumstances.
  • 2.6 Ascertain the severity of business impacts and develop recommendations to ensure financial viability of the organisation.
3. Adapt business operations to manage the crisis.
  • 3.1 Develop and implement an emergency operational plan to manage the crisis.
  • 3.2 Involve key people in the management of the business crisis and integrate their perspective.
  • 3.3 Implement accepted recommendations for changing business operations.
  • 3.4 Communicate new practices to key people including external suppliers.
  • 3.5 Re-align staffing arrangements to control wage costs.
  • 3.6 Gain staff confidence in current managerial activity and their commitment to the business in crisis.
  • 3.7 Re-align products and services to meet current market needs.
  • 3.8 Re-negotiate with suppliers to achieve optimum profitability during the crisis.
  • 3.9 Implement promotional and public relations activities to assure consumer confidence.
4. Monitor and evaluate business operations.
  • 4.1 Monitor business activity and profitability throughout all stages of the crisis.
  • 4.2 Seek internal and external feedback on the effectiveness of emergency business operations.
  • 4.3 Identify and respond to inadequacies in emergency operational plan to account for changing circumstances.
  • 4.4 Continually adapt business operations to ensure business continuity.
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.
Triggers may include:
changes in the length and regularity of holidays taken by the source market
changes in the popularity of:
destinations
style of tourism, travel and hospitality products
budget or premium product
closure of major transport suppliers:
airlines
coach companies
cruise operators
closure of the operation of multiple suppliers in a destination
downturn in local economic growth
global financial downturn
impending economic recession or crisis
in destinations used by the business, warnings of impending:
natural disasters
political and civil uprisings
terrorism acts
wars.
Information relevant to the crisis may be sourced from:
emergency services reports
health advisory notices and vaccination information issued by local and international bodies
industry associations and organisations
industry journals
informal discussions and networking with internal and external colleagues
media reports on external crises
press releases and emergency advice notices issued by:
local, state, territory or federal governments
destination marketing companies
regional, state and national tourism offices
franchisors
staff, contractor, supplier reports on:
accidents
breakdown or complete failure of key equipment
death
injury
major work health and safety incidents
travel warning advice issued by the federal government for Australian travellers.
Internalcrises may be:
breakdown or complete failure of key equipment
customer, tour guide or tour manager:
accident
death
major injury or illness
repatriation
destruction of infrastructure
failure of marketing program
financial loss through:
noncompliance with the law
litigation
key employee:
death
family crisis
fraud
long term illness
professional incompetence
media coverage of business’s:
accidents
incidents
impending failure
major work health and safety accident or near miss incident.
External crisesmay be:
breakdown or complete failure of supplier equipment
for destinations used by the business:
chemical spill
civil uprising
destruction of tourism infrastructure
health epidemics or pandemics
natural disaster (cyclone, earthquake, fire, flood, tsunami, etc.)
outbreak of war
political coup
radiation leak
terrorism
financial recession or crisis for the source market
global financial crisis
industrial dispute
plane crash.
Key people may include:
business accountants
customers and their families
colleagues, including:
managers
operational staff
peers
supervisors
contract tour guides and tour managers
consultants:
crisis management
marketing
public relations
financial controllers
insurance brokers and providers
legal representatives
suppliers
travel insurance providers.
Organisational documents may include:
brochures
budgets:
departmental
entire organisation
product specific
project specific
revenue and expenditure items
contracts with:
other businesses to whom products and services are supplied
suppliers
customer surveys
plans:
business
marketing
operations
product development
project
product costings and published tariffs and price lists
reports:
current financial status
financial forecasting
staff feedback
wage cost
tenders, proposals or bids
terms and conditions:
credit provision
provision of products and services to customers.
Recommendations may include:
cancellation of impending departures to affected destinations
cancellation of unprofitable products or services
closure of particular departments
moving premises to a less costly location
price rises or reductions
re-alignment of product style and pricing to meet current market needs
reduction of staff hours or staff redundancies
sale of equipment
scaling up or down of promotional activities
temporary cancellation of products within affected destinations
temporary closure of:
accommodation wings or floors
internal venues:
cafes
restaurants
retail outlets.
Staffing arrangements may include:
non-use of casual staff
re-assigning duties
reducing permanent employee hours
redundancies.
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 ability to:
identify and assess the ramifications of a crisis on business continuity
assess and adapt business operations to manage a business continuity crisis
develop clear, accurate and complex emergency operational plans
implement an emergency operational plan and monitor, evaluate and adapt the outcomes over a period of time
integrate knowledge of the key characteristics of internal and external crises and impacts on business viability.
Context of and specific resources for assessment
Assessment must ensure use of:
a real or simulated tourism, hospitality or event industry business operation or event facing a business continuity crisis
computers, software programs, printers and communication technology used to administer crisis management
current commercial plans and financial reports
crisis information
a team so that consultative actions can be implemented.
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:
evaluation of a portfolio, prepared by the individual, incorporating documents used for the management of a business or event crisis:
summary of crisis research material
recommendations for managing the situation
an emergency operational plan detailing strategies to ensure the financial viability of the organisation
direct observation, using role plays, of the individual consulting with and briefing key staff members on emergency operational practices
use of case studies and problemsolving exercises so the individual can identify and evaluate the impacts of different types of crises on tourism, hospitably and event businesses
written and oral questioning to assess knowledge of:
the key characteristics of internal and external crises
historical impacts of crises on tourism, hospitality and event operations
the major triggers for a downturn in customer sales
review of portfolios of evidence and thirdparty workplace reports of onthejob performance by the individual.
Guidance information for assessment
The assessor should design integrated assessment activities to holistically assess this unit with other units relevant to the industry sector, workplace and job role, for example:
BSBFIM601A Manage finances
BSBMGT515A Manage operational plan
SITHKOP501 Design and cost menus
SITTPPD503 Research and analyse tourism data
SITTPPD601 Develop tourism products
SITXFIN501 Prepare and monitor budgets.
Replaced By
State Code National Code Title Type
AWQ60 SITXCRI002 Manage a business continuity crisis Unit of competency
State Code National Code Title Type
J455 SIT60212 Advanced Diploma of Events Qualification
J628 SIT60313 Advanced Diploma of Hospitality Qualification
J452 SIT60112 Advanced Diploma of Travel and Tourism Qualification