Elements and Performance Criteria

RANGE STATEMENT
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.

Operational objectives may include:
business or operational objectives relating to:
client of the organisation
department within an organisation
whole of the organisation
particular project
particular event or community activity
meeting budget
minimising losses
making a business profit
meeting project deadlines
staging an event or community activity successfully
successful project outcomes.


Key people may include:
colleagues, including:
peers
supervisors
managers
clients
contractors
participants and performers
venue and facility managers
industry association personnel
legal representatives
business accountants
insurance brokers
specialist or technical advisers
government authorities.


Informationsources may include:
business plans
operational plans
project plans
marketing plans
tender, proposal or bid documents
customer quotations
discussions with colleagues or clients
group workshops or brainstorming
incident reports
industry association reports and articles
media reports and articles
observation checklists
surveys.


A business risk identification tool or template document and assessment criteria may include:
self-designed tools and assessment criteria
tools and templates developed:
by external consultancy services
by industry associations for use by member businesses
by the organisation as part of a risk management system
for public use and found within business management manuals
assessment criteria nominated in Australian standards.


Methods to identify foreseeable risk may include:
audit of operational activity
interview and discussion
investigation of an incident with a negative result
monitoring of operational activity
observation of business, project or client activities
review of incident reports and registers
review of information sources, such as plans and reports
review of global or local reports and media discussions that identify critical economic, social, terror-related, war-related or health issues.


Clear documents that outline identified risks and documentation of the outcome of the assessment may include:
checklist
completed risk identification and assessment report or checklist, such as a tool or template document
comprehensive file notes
correspondence with customer, supplier or specialist adviser
report
meeting notes or minutes
action plan.


Risks may involve:
product failure
failure of marketing program
competitor activity
damage to property or equipment
system or equipment failure
financial loss
industrial dispute
inability to provide business or operational activity with appropriate human, financial or physical resources
natural disasters
political events
civil uprising
terrorism
world or local health events or epidemics
professional incompetence
non-compliance with industry or legal requirements
security breaches or failures
change of client or customer requirements.


Four-staged hierarchical process model must include:
identifying the consequences that could result from the identified risk
determining the exposure to the risk
estimating the probability that negative impacts will occur
determining an overall risk level for the identified issue, identifying risk level as:
low
accepted
medium
high.


Capability to eliminate or control risk may include:
access to accurate information
expertise within the organisation to determine and implement appropriate control measures
legal liability
financial or other resource constraints on implementing sufficient control measures.

EVIDENCE GUIDE
The evidence guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, the range statement and the Assessment Guidelines for this Training Package.

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the following is essential:
project or work activities that show the candidate's ability to systematically identify risks to business operations, assess the associated consequences and take measures to control the risks for a given service industry operation
ability to develop or access and use business risk identification and assessment template
project or work activities conducted over a commercially realistic period of time so that the monitoring and evaluation aspects of business risk can be assessed.
Context of and specific resources for assessment
Assessment must ensure:
that the candidate has accessed a fully equipped office environment using appropriate computers, printers, communication technology, information programs and publications to facilitate the processes involved in managing business risk
access to an operation for which a business risk assessment can be undertaken, or to comprehensive and sufficient information about that operation to allow the candidate to participate fully and actively in risk management practices
use of risk management information or business management manuals issued by industry associations or commercial publishers, and template documents used for risk assessment activities
use of information sources that provide operational details on which to base business risk identification or assessment activity, such as business, marketing, operational or project plans
involvement of key people so that consultative actions may be implemented.


Methods of assessment
A range of assessment methods should be used to assess the practical skills and knowledge required to manage business risk. The following examples are appropriate for this unit:
evaluation of completed business risk identification and assessment template documents prepared by the candidate detailing suggested risk controls for a given project or work activity
evaluation of a portfolio that incorporates all documents used for the management of business risk for a business, project or event, including summary of reference material, completed risk identification and assessment template documents, documents detailing control measures, reports detailing success of control measures and recommendations for improvements, and notes or minutes from meetings and briefings
evaluation of project or work activities conducted in conjunction with an industry operator to allow the candidate to implement risk management practices for a particular business, event, project or business activity
direct observation of the candidate consulting with appropriate colleagues about business risk identification, assessments and control
case studies and problem-solving exercises to identify and assess business risks for different types of business or operational activities
written and oral questioning or interview to test knowledge of the risk management principles
review of portfolios of evidence and third-party workplace reports of on-the-job performance by the candidate.
Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:
SITXADM003A Write business documents.


Assessing employability skills
Employability skills are integral to effective performance in the workplace and are broadly consistent across industry sectors. How these skills are applied varies between occupations and qualifications due to the different work functions and contexts.
Employability skills embedded in this unit should be assessed holistically with other relevant units that make up the skill set or qualification and in the context of the job role.