Elements and Performance Criteria

commercial relationships
economic circumstances and scenarios
human behaviour
individual activities
legislation
management activities and controls
natural events
political circumstances
technology

given project
specific business unit or area
specific functional such as:
financial management
OHS
governance
external environment
internal environment
whole organisation

all staff
internal and external stakeholders
senior management
specific teams or business units
technical experts

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

brainstorms
checklists
fishbone diagrams
flowcharts
scenario analysis

probability of a given risk occurring, such as:
very likely
likely
possible
unlikely
rare

significance of outcomes if the risk occurs, such as:
disastrous
severe
moderate impact
minimal impact

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

avoiding the risk
changing the consequences
changing the likelihood
retaining the risk
sharing the risk with a third party

what actions are required
who is taking responsibility
time lines
monitoring processes

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 on-the-job 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.