Unit of competency Outline
Date retreived
22/07/2026 2:11 PM AWST
22/07/2026 2:11 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Establish legal and risk management requirements of small business
Establish legal and risk management requirements of small business
Unit of competency
National Code
BSBSMB401
BSBSMB401
State Code
AUL08
AUL08
TGA Status
Replaced
Replaced
DTWD Status
Transition (Replaced)
Transition (Replaced)
State Implementation and Classification
Approved Date
15/09/2015
Field of Education
080301 - Business Management
Original Release Date
15/09/2015
Nominal Hours
40
Description
This unit describes the skills and knowledge required to identify and comply with all regulations affecting the business. It applies to individuals operating a small business who use analytical skills to interpret legislation and regulations and develop procedures to manage compliance.No licensing, legislative or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Identify and implement business legal requirements
- 1.1 Identify and research possible options for the business legal structure using appropriate sources
- 1.2 Determine legislation and regulatory requirements affecting operations of the business under its chosen structure
- 1.3 Develop and implement procedures to ensure full compliance with relevant legislation and regulatory requirements
2. Comply with legislation, codes and regulatory requirements
- 2.1 Establish systems to ensure legal rights and responsibilities of the business are identified and the business is adequately protected, specifically in relation to work health and safety (WHS), business registration and environmental requirements
- 2.2 Identify taxation principles and requirements relevant to the business, and follow procedures to ensure compliance
- 2.3 Identify and carefully maintain legal documents and maintain and update relevant records to ensure their ongoing security and accessibility
- 2.4 Monitor provision of products and services of the business to protect legal rights and to comply with legal responsibilities
- 2.5 Conduct investigations to identify areas of noncompliance with legal and regulatory requirements, and take corrective action where necessary
3. Negotiate and arrange contracts
- 3.1 Seek legal advice on contractual rights and obligations, if required, to clarify business liabilities
- 3.2 Investigate and assess potential products and services to determine procurement rights and ensure protection of business interests where applicable
- 3.3 Negotiate and secure contractual procurement rights for goods and services including contracts with relevant people, as required, in accordance with the business plan
- 3.4 Identify options for leasing or ownership of business premises and complete contractual arrangements in accordance with the business plan
4. Identify and treat business risks
- 4.1 identify potential internal and external risks to the business
- 4.2 assess the probability and impact of identified risks
- 4.3 prioritise risks for treatment
- 4.4 develop actions to mitigate risks including identifying insurance requirements and adequate cover
No information
No information
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| D1012 | BSBSMB401A | Establish legal and risk management requirements of small business | Unit of competency |
Replaced By
| State Code | National Code | Title | Type |
|---|---|---|---|
| OCG32 | BSBESB402 | Establish legal and risk management requirements of new business ventures | Unit of competency |