Unit of competency Outline
Date retreived
23/07/2026 5:34 AM AWST
23/07/2026 5:34 AM 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.
Develop risk management systems
Develop risk management systems
Unit of competency
National Code
LGAGCM706A
LGAGCM706A
State Code
D2853
D2853
TGA Status
Deleted
Deleted
DTWD Status
Deleted
Deleted
State Implementation and Classification
Approved Date
15/08/2014
Field of Education
080301 - Business Management
Original Release Date
15/08/2014
Nominal Hours
70
Description
This unit covers planning and managing the risk management system, including developing, monitoring, reviewing and continuously improving the system and reporting the benefits of the risk management system to stakeholders.No licensing, legislative, regulatory or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Establish the nature of risk management
- 1.1 Nature of risk managementwithin local government context is identified and documented, considering council's unique characteristics.
- 1.2 Structure within which the risk management process will take place is outlined and communicated to stakeholders.
- 1.3 Criteria against which risks will be evaluated are determined are documented.
- 1.4 Risk management policy is designed for council operations and communicated to all staff.
2. Identify existing and potential risks
- 2.1 Potential risk events are identified through extensive consultation with relevant stakeholders and personnel.
- 2.2 Reports from workplace inspections are used to identify existing and potential risks.
- 2.3 Relevant statutory and regulatory requirements pertaining to all council functions are identified to determine potential areas of risk for non-compliance.
- 2.4 All staff members are encouraged to identify and report existing and potential risk events to appropriate stakeholders.
3. Analyse existing and potential risks
- 3.1 Identified risks are analysed for the likelihood of potential risks occurring and their consequences.
- 3.2 First aid reports and reports of the incidence of risk are analysed to assist in determining consequences of risk.
- 3.3 Existing controls or safety mechanisms put in place to reduce likelihood of a risk occurring are identified and likelihood of occurrence is re-assessed.
- 3.4 Total estimated level of risk is determined considering likelihood and consequence of potential risks occurring.
4. Evaluate and prioritise risks
- 4.1 Estimated levels of risk are compared and evaluated against predetermined criteria.
- 4.2 Risks are prioritised to highlight those requiring urgent attention.
- 4.3 Risks that are evaluated as unlikely to occur and which hold minimal consequences are given lowest priority.
5. Develop and implement risk management or control plans
- 5.1 Risk management or control plans are developed to eliminate or reduce the potential for risk events and consequences.
- 5.2 Accountabilities and responsibilities for the identification, management and reporting of risks are allocated and documented in job descriptions.
- 5.3 Appropriate reporting mechanisms for logging identified risks and the steps taken to address risks are established, updated regularly and used for formal reporting purposes.
- 5.4 Resources required to address identified risks are determined, documented and allocated.
- 5.5 Risk control strategies and required resources are included in budgets and other relevant financial planning processes and decisions.
- 5.6 Risk management plans are designed and documented for priority risks in consultation with stakeholders and industry specialists where necessary.
- 5.7 Reporting requirements and time frames for achieving risk mitigation are established, documented and communicated to appropriate stakeholders.
- 5.8 Budgets and other financial plans are regularly updated to account for necessary risk management funds.
- 5.9 Formal and informal staff training in risk management principles and practices is developed and implemented.
6. Monitor and review the risk management system
- 6.1 Inspection programs are designed and implemented to enable ongoing monitoring of risk control plans.
- 6.2 Risk management strategies and plans are periodically reviewed and assessed for their adequacy, timeliness and effectiveness in risk mitigation.
- 6.3 Reports of the incidence of risk occurring are monitored and used to inform risk management processes.
- 6.4 Risk management process and system are regularly monitored for their effectiveness and changes which may affect their operation.
- 6.5 Continuous improvement of risk management process is demonstrated and implemented.
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 in the Performance Criteria is detailed below.
Risk management within local government may include:
public liability
safety of staff
workers compensation claims
business continuity, e.g. emergency plans for council activities to continue in the event of loss of building, equipment or systems
property development and maintenance
motor vehicles parked or in motion
environmental concerns, such as pollution, hazardous waste and tree policies
Relevant stakeholders and personnel may include:
departmental managers
staff
senior management
industry representatives
contractors
risk management consultants
community groups
Statutory and regulatory requirements may include:
occupational health and safety regulations and codes of practice
Workers Compensation Act
codes of practice
relevant Australian standards
Steps to ensure risks are analysed may include:
qualitative analysis
quantitative analysis
semi-quantitative analysis
sensitivity analysis
ranking and rating against set criteria
Likelihood of potential risks occurring may be assessed through:
liaison with industry representatives and subject matter experts
reference to relevant statistical information
consultation with other councils
application of the 'reasonable man' test
Consequences of potential risks occurring may include:
death or disability
loss of reputation
increased hazards
compensation payments
business interruption
threats to physical safety
security breaches
fraud
Risk management within local government may include:
public liability
safety of staff
workers compensation claims
business continuity, e.g. emergency plans for council activities to continue in the event of loss of building, equipment or systems
property development and maintenance
motor vehicles parked or in motion
environmental concerns, such as pollution, hazardous waste and tree policies
Relevant stakeholders and personnel may include:
departmental managers
staff
senior management
industry representatives
contractors
risk management consultants
community groups
Statutory and regulatory requirements may include:
occupational health and safety regulations and codes of practice
Workers Compensation Act
codes of practice
relevant Australian standards
Steps to ensure risks are analysed may include:
qualitative analysis
quantitative analysis
semi-quantitative analysis
sensitivity analysis
ranking and rating against set criteria
Likelihood of potential risks occurring may be assessed through:
liaison with industry representatives and subject matter experts
reference to relevant statistical information
consultation with other councils
application of the 'reasonable man' test
Consequences of potential risks occurring may include:
death or disability
loss of reputation
increased hazards
compensation payments
business interruption
threats to physical safety
security breaches
fraud
Overview of assessment requirements
A person who demonstrates competency in this unit will be able to perform the outcomes described in the elements to the required performance level detailed in the performance criteria. The unit's skill and knowledge requirements must also be demonstrated. The candidate will demonstrate the capacity to manage the development of a risk management strategy.
Critical aspects of evidence to be considered
The demonstrated ability to:
develop, manage, monitor and review risk management processes and practices within an area of local government
Context of assessment
Assessment of performance requirements in this unit should be undertaken with the context of the local government framework. Competency is demonstrated by performance of all stated criteria, including the range of variables applicable to the workplace environment.
Method of assessment
The following assessment methods are suggested:
preparation of a major workplace project report/portfolio (that may incorporate assessment of related units) as a key form of assessment that enables candidates to integrate the learning and assessment project into their regular work responsibilities, which enables integrated and holistic assessment of the complex skills and knowledge addressed in this unit
observation of the learner performing a range of workplace tasks over sufficient time to demonstrate his/her handling of a range of contingencies
written and oral questioning to assess knowledge and understanding
completion of workplace documentation
third-party reports from experienced practitioner
completion of self-paced learning materials, including personal reflection and feedback from trainer, coach or supervisor
Evidence required for demonstration of consistent performance
Evidence should be gathered over a period of time in a range of actual or simulated management environments.
Resource implications
Access to a workplace or simulated case study that provides the following resources:
relevant council documents, such as strategic and operational plans
relevant local government legislation and regulations
A person who demonstrates competency in this unit will be able to perform the outcomes described in the elements to the required performance level detailed in the performance criteria. The unit's skill and knowledge requirements must also be demonstrated. The candidate will demonstrate the capacity to manage the development of a risk management strategy.
Critical aspects of evidence to be considered
The demonstrated ability to:
develop, manage, monitor and review risk management processes and practices within an area of local government
Context of assessment
Assessment of performance requirements in this unit should be undertaken with the context of the local government framework. Competency is demonstrated by performance of all stated criteria, including the range of variables applicable to the workplace environment.
Method of assessment
The following assessment methods are suggested:
preparation of a major workplace project report/portfolio (that may incorporate assessment of related units) as a key form of assessment that enables candidates to integrate the learning and assessment project into their regular work responsibilities, which enables integrated and holistic assessment of the complex skills and knowledge addressed in this unit
observation of the learner performing a range of workplace tasks over sufficient time to demonstrate his/her handling of a range of contingencies
written and oral questioning to assess knowledge and understanding
completion of workplace documentation
third-party reports from experienced practitioner
completion of self-paced learning materials, including personal reflection and feedback from trainer, coach or supervisor
Evidence required for demonstration of consistent performance
Evidence should be gathered over a period of time in a range of actual or simulated management environments.
Resource implications
Access to a workplace or simulated case study that provides the following resources:
relevant council documents, such as strategic and operational plans
relevant local government legislation and regulations
No information
| State Code | National Code | Title | Type |
|---|---|---|---|
| D352 | LGA70108 | Graduate Certificate In Local Government Management | Qualification |