Public Sector - Draft 2

PSPMGT007 Manage risk_validation

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Unit application and prerequisites




Manage risk


This unit describes the performance evidence, skills and knowledge required to maximise results and minimise consequences for a business unit activity by managing risk.

This unit applies to those managing risks. Those undertaking this unit would work autonomously, performing complex tasks in a range of familiar contexts.

The skills in this unit must be applied in accordance with Commonwealth and State/Territory legislation, Australian standards and industry codes of practice.

No occupational licensing, certification or specific legislative or certificate requirements apply to this unit at the time of publication.








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Elements and performance criteria



Elements describe the essential outcomes

Performance criteria describe the performance needed to demonstrate achievement of the element.

  1. Establish the risk management context
    1. Establish the nature and extent of business unit activity, its objectives and outcomes within the organisational context.
    2. Identify the strategic and risk management context.
    3. Identify and consult stakeholders to ensure their views, concerns and needs are taken into account in the risk management process.
    4. Determine criteria for risk assessment.
    5. Determine risk management criteria to provide guidance on balancing risk, costs, benefits and opportunities.
    6. Monitor, review and adjust risk management criteria to ensure opportunities and current and emerging trends are reflected.
  1. Plan for risk management
    1. Investigate sources of risk and identify and consult upon potential, perceived and actual risks to ensure full coverage.
    2. Analyse risks and document in consultation with stakeholders and determine levels of risk as the basis for risk management planning.
    3. Select risk management methods and modify as necessary to determine risks that are acceptable or unacceptable.
    4. Identify risk treatment options for unacceptable risks and determine preferred risk treatment approaches.
    5. Develop and communicate risk management plan to key stakeholders to ensure clarity and achievement of objectives.
  1. Manage risk
    1. Manage activity in accordance with agreed risk management plan.
    2. Review performance, analyse variance and initiate risk responses to achieve objectives with minimal disruption and conflict.
    3. Monitor internal and external risks to outcomes and initiate remedial actions to achieve objectives.
  1. Evaluate the risk management plan
    1. Develop and implement an evaluation methodology.
    2. Review and analyse outcomes to assess the effectiveness of current risk management strategies.
    3. Monitor existing risks, identify new risks and identify any trouble spots.
    4. Seek and use a variety of information, including the perspectives of key stakeholders.
    5. Formulate and act upon recommendations on enhancements to the plan.
    6. Communicate the outcomes of evaluation to relevant personnel.


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Foundation skills


Foundation skills essential to performance in this unit, but not explicit in the performance criteria are listed here, along with a brief context statement.



Reading skills to:

  • Interpret and apply information from range of sources to identify ,monitor and review manage risk functions and processes

Numeracy skills to:

  • Manage plans and schedules
  • interpret and apply mathematical data to budgetary and evaluation processes supporting risk management in the organisation.

Enterprise and initiative skills to :

  • Identify trends and predict the need for changes in strategies


Release1: Supersedes and is equivalent to PSPMGT007 Manage risk


Companion Volume Implementation Guide


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Performance evidence


Assessment Requirements for PSPMGT007 Manage risk


Evidence of the ability to complete tasks outlined in elements and performance criteria of this unit in the context of the job role, and on at least one occasion:

  • apply legislation, regulations and policies relating to risk management
  • research and analyse the wider context affecting the organisation
  • communicate and consult with a diverse range of stakeholders
  • problem solve using conceptual and reasoning skills
  • engage in discussion using exchange of complex oral information
  • use a variety of words and language structures to explain complex, formal documents and assist others to apply them in the workplace


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Knowledge evidence


Demonstrated knowledge required to complete the tasks outlined in elements and performance criteria of this unit:

  • legislation, regulations, policies, procedures and guidelines relating to risk management
  • Australian and New Zealand standards
  • Guidelines for managing risk in the Australian and New Zealand public sector
  • risk management cycle
  • the relationship of risk to context – how the context may define the risks
  • the importance of consultation and communication at every stage of the risk management cycle
  • legal requirements related to the activity
  • whole of life considerations
  • approval processes
  • range of evaluation methodologies
  • the diversity of risks in the public sector
  • legislation, including work health and safety and environment in the context of risk management


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Assessment conditions


Skills must be demonstrated in either:

  • a workplace environment or
  • a simulated environment that:

Simulated assessment environments must simulate the real-life working environment where the skills and knowledge within this unit would be utilised, with all the relevant equipment and resources of that working environment.


Assessment must ensure access to:

  • legislation, policy, procedures and protocols relating to risk management
  • Australian and New Zealand standards - Risk management
  • Guidelines for managing risk in the Australian and New Zealand public sector
  • other national and international standards relating to risk management relevant to the organisation.


Assessors must satisfy the Standards for Registered Training Organisations’ requirements for assessors.


Companion Volume Implementation Guide


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