Unit Title
BSBRSK501 – Manage risk
Unit Purpose
This unit describes skills and knowledge required to manage business risks in a range of contexts across an organisation or for a specific business unit or area in any industry setting.
Prerequisites
There are no pre-requisites for this unit
Content
Section 1: Establishing risk context
Section 2: Identifying risk
Section 3: Analysing risk
Section 4: Selecting and implementing treatments
Resources/Readings
Readings A – F are located in the associated BSBRSK501 Readings.
Suggested Hours
Although everyone will work at their own pace, we suggest you allow approximately 60 hours to complete this unit competently, including seminars, tutorials, assignments and skills demonstration activities
Timeframe
The recommended time frame for this unit is 4 weeks.
Assessment
This unit will be assessed by completing the BSBRSK501 Assessment.
How to Use This Module
This module and associated readings contain all of the information that you need to complete the assessment tasks associated with this unit. You must read through all of the information provided (both the module and readings) before attempting the assessment tasks.
Throughout this module there are a few icons used to help you. These include:
Tip
This is used to indicate the presence of tips or additional instructions that may assist you as you work through this module. They are designed to help you expand your knowledge and skills and deepen your understanding of how concepts and practices are applied in workplaces.
Read
You will find these throughout the module. They indicate that a particular Reading contains additional information on the topic that is being discussed at that point.
Reflect
This indicates a self-reflection question. You are not required to submit answers to these questions. They are designed to get you thinking more about the topic and to consider key points in order to aid your understanding.
Upon completion of this unit, you should be able to:
| Element | Performance Criteria |
|---|---|
| 1. Establish risk context | 1.1 Evaluate organisational processes, procedures and requirements and determine scope for risk management process 1.2 Review strengths and weaknesses of existing arrangements 1.3 Document critical success factors, goals and objectives for area included in scope 1.4 Communicate risk management process to relevant stakeholders |
| 2. Identify risks | 2.1 Invite stakeholders to assist in the identification of risks 2.2 Research risks that may apply to scope 2.3 Document risks that apply to the scope, in consultation with relevant parties |
| 3. Analyse risks | 3.1 Assess likelihood of risks occurring 3.2 Assess impact or consequence if risks occur 3.3 Evaluate and prioritise risks for treatment |
| 4. Select and implement treatments | 4.1 Determine and select from options for treating risks 4.2 Develop action plan for implementing risk treatment 4.3 Communicate risk management processes to relevant parties 4.4 Implement action plan according to organisational policies and procedures 4.5 Monitor and evaluate risk management process |
Knowledge Evidence
The candidate must be able to demonstrate knowledge to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including knowledge of:
- legislative and regulatory context of the organisation in relation to risk management
- organisational policies, procedures and processes for risk management, including document storage
- types of business risks
- options for treating risks
- risk management process
- purpose and key elements of current risk management standards
- tools and techniques to identify risks to scope risk management processes.
Performance Evidence
The candidate must demonstrate the ability to complete the tasks outlined in the elements, performance criteria and foundation skills of this unit, including evidence of the ability to:
- lead at least one risk management process for an organisation or work area.
In the course of the above, the candidate must:
- analyse information from a range of sources to identify the scope and context of the risk management process, including:
- stakeholder analysis
- political, economic, social, legal, technological and policy context
- current arrangements
- objectives and critical success factors for the area included in scope
- risks that may apply to scope
- consult and communicate with stakeholders to identify and assess risks, determine appropriate risk treatment actions and priorities and explain the risk management processes
- develop and implement an action plan to treat risks
- monitor and evaluate the action plan and risk management process
- maintain documentation.
This unit is designed to teach you how to manage risks in a range of contexts across the organisation or for a specific business unit or area. This unit focuses on establishing the context for risk management, identifying and analysing risks, and selecting and implementing risk treatments.
Overview of Sections
Section 1: Establishing Risk Context
This section of the module focuses on establishing the context for risk management. In this section you will learn how to review existing arrangements for risk management, determine the scope of risk management, and identify the stakeholders of risk management. You will also learn how to review the external environment including the political, economic, social, technological, and legal context of risk management. Finally you will learn how to document goals and objectives and obtain support for risk management activities.
Section 2: Identifying Risks
This section of the module focuses on risk identification. In this section you will learn how to invite the relevant parties to assist and participate in the risk identification process. You will also learn how to research risks that may apply to the scope. Finally you will learn how to use tools and techniques to generate a list of risks that apply to the scope, in consultation with the relevant parties.
Section 3: Analysing Risks
This section of the module focuses on risk analysis. In this section you will learn how to perform a risk analysis. Risk analysis involves assessing the likelihood of risks occurring, assessing the impact or consequences if those risks were to occur and finally evaluating and prioritising risks for treatment.
Section 4: Selecting and Implementing Treatments
This section of the module focuses on selecting and implementing risk treatments. In this section you will learn how to determine and select the most appropriate options for treating risks. You will also learn how to develop an action plan for implementing risk treatments and communicate risk management processes to the relevant parties. Additionally, you will learn to ensure all documentation is in order and stored correctly, implement and monitor the action plan, and evaluate the risk management process.
