Unit of competency Outline

Date retreived
24/07/2026 3:20 AM AWST

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Manage organisational risks

Manage organisational risks

Unit of competency
National Code
SISXRSK502A
State Code
D6212
TGA Status
Deleted
DTWD Status
Transition (Deleted)
Current Release Number
3.00
Current Release Date
06/03/2013
View on TGA
State Implementation and Classification
Approved Date
15/10/2014
Field of Education
080301 - Business Management
Original Release Date
15/10/2014
Nominal Hours
20
Description
This unit describes the performance outcomes, skills and knowledge required to develop, implement and evaluate a risk-management program for an organisation. It incorporates an assessment of potential risks facing the organisation and the development of strategies and procedures to mitigate risk situations according to the current Australian and New Zealand Standard.
Notes
Elements and Performance Criteria
1. Determine the context of the organisation's risk-management program.
  • 1.1. Access and analyse relevant legislation and the organisation’s risk-management policy.
  • 1.2. Access and evaluate current organisational risk-management programs.
  • 1.3. Identify outcomes from organisational risk audits and identify potential areas of risk.
  • 1.4. Analyse the organisation’s capacity to reduce or control the likelihood of incidents and consequences.
  • 1.5. Access and clarify broad risk-evaluation criteria as specified by the organisation’s risk-management policy.
  • 1.6. Identify key risk-management personnel within the organisation.
2. Identify organisational risks.
  • 2.1. Identify and document sources of risk within each risk classification relevant to the organisation, including risks not under the control of the organisation.
  • 2.2. Assess and document areas of impact on the organisation.
  • 2.3. Identify and document possible causes of risk and seek external specialist assistance to control them.
3. Conduct analysis of organisational risks.
  • 3.1. Determine appropriate methodology and tools to conduct organisational risk analysis.
  • 3.2. Conduct analysis according to organisational risk-management policy.
  • 3.3. Determine existing organisational controls established by the organisation according to Work Health and Safety (WHS) legislation.
  • 3.4. Assess the likelihood of any given risk turning into an accident, injury or loss.
  • 3.5. Assess the consequences of particular occurrences in order to determine the degree of emphasis to be placed on the risk.
  • 3.6. Determine suitable techniques to analyse the likelihood and consequences of particular risks.
4. Undertake assessment of organisational risk.
  • 4.1. Establish specific risk-evaluation criteria for each risk classification or individual risk, consistent with the risk-management policy.
  • 4.2. Compare the level of risk established during the analysis process.
  • 4.3. Rank or prioritise risks for further action, taking account of the wider context of the risk.
  • 4.4. Consider the objectives of the organisation and the extent of opportunity which could result from taking the risk.
  • 4.5. Accept risks that fall into the low or acceptable categories without further treatment.
  • 4.6. Treat risks that fall outside the low or acceptable categories.
5. Prepare and implement an organisational risk-management program.
  • 5.1. Identify specific risk-treatment options applicable to risks that fall outside the acceptable categories that have the potential to impact upon the organisation.
  • 5.2. Evaluate risk-treatment options according to the organisation’s risk-management policy and risk-evaluation criteria.
  • 5.3. Prepare and document the organisation risk-management plan.
  • 5.4. Establish strategies and procedures to implement the risk-management program.
  • 5.5. Develop and implement training to inform employees and volunteers of the organisation’s risk-management program.
  • 5.6. Monitor and review staff compliance with risk-management procedures.
6. Monitor and evaluate the risk-management program.
  • 6.1. Monitor and review the effectiveness of the risk-management plan, to ensure changing circumstances within the organisation do not alter risk priorities.
  • 6.2. Periodically review acceptable or low risks to ensure they remain acceptable.
  • 6.3. Determine and analyse activities, projects or operations which do not achieve their performance outcomes according to the risk-management program, and determine potential causes.
  • 6.4. Analyse incidents which occur that indicate a near miss and review the risk-management plan.
  • 6.5. Make changes to the conduct of activities or to organisation operations according to review recommendations.
  • 6.6. Implement recommendations in future risk-analysis audits of the organisation.
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.
Relevant legislation may include:
WHS
environmental
child protection
equal employment opportunity
privacy
duty of care
industrial relations
licensing
industry codes of practice.
Risk-evaluation criteria may include:
target risk levels
legislation
regulations
Australian standards
organisation policies, aims and objectives
operating procedures and guidelines.
Sources of risk may include:
physical
chemical
environmental
psychological
financial, commercial and legal
behavioural
technological
internal and subject to the organisation’s control
external and beyond the organisation’s control
human
equipment.
Risk classification may include:
diseases
economic perils
environmental
financial
human perils
natural perils
WHS
product liability
professional liability
property damage
public liability
security
technology.
Areas of impact may include:
asset and resource base of the organisation
revenue and entitlements
costs of activities
individuals and community
timing and schedule of activities
environment
organisational goodwill
organisational behaviour
goals and objectives.
External specialist assistance may include:
specialist consultants
government agencies.
Methodology may include:
qualitative
quantitative
combined qualitative and quantitative.
Work Health and Safety Legislation (WHS) may include:
emergency response
consultation and participation
WHS issue resolution
hazard identification
risk assessment and control
personal protective equipment use
WHS reporting.
Consequences may include:
losses
injuries
disadvantages
gains - personal, educational, social, emotional and fitness.
Risk-treatment options may include:
avoidance
reduction
transfer
finance
acceptance.
Organisational risk-management plan may include:
specific risk-treatment plans
strategies detailing implementation
staff responsibilities
schedules
expected outcomes of treatments
budgeting
performance measures
review process
recording requirements.
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:
work within organisation risk-management systems and objectives and comply with legislative requirements to undertake risk assessments that align with organisation risk-management policy and operational requirements
access and clarify information to:
identify and document organisation risks in each of the relevant classifications
develop an organisation risk management plan
assess, select and implement viable risk-treatment options
monitor the effectiveness of the plan and apply contingency-management techniques to deal with a range of changing circumstances that may alter the management of organisation risks.
Context of and specific resources for assessment
Assessment must ensure:
identification of organisation risks and development of an organisation risk-management plan which is of sufficient breadth to demonstrate competency and consistency of performance.

Assessment must also ensure access to:
an operational environment or facility conducting a range of activities and or projects
organisation policies and procedures related to risk management
organisation reporting requirements
organisation records, risk audits and policy documents
support staff, locations and resources to implement and review risk-control measures.
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:
observation of applying organisational risk-analysis procedures to organisational operations, such as activities and projects
oral and or written questioning to assess knowledge of techniques in relation to risk-assessment methodologies
portfolio of records and reports documenting development and review of organisational risk-management plans and outcomes
third-party reports from a supervisor detailing work performance.
Guidance information for assessment
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
SISXWHS503 Establish and maintain Work Health and Safety systems.
Replaces
State Code National Code Title Type
C6455 SRXRIK002A Manage an organisation's risk Unit of competency