Elements and Performance Criteria

Areas of impact

asset and resource base of the organisation and including personnel

revenue and entitlements

costs of activities both direct and indirect

people/community

performance

timing and schedule of activities

the environment

intangibles such as reputation, goodwill, quality of life

organisational behaviour

Consequences

the outcome of an event expressed qualitatively or quantitatively, being a loss, injury, disadvantage or gain. There may be a range of possible outcomes associated with an event

Document
includes assumptions, methods, data sources and results
reasons for documentation

to demonstrate the process is conducted properly

to provide evidence of a systematic approach to risk identification and analysis

to provide a record of risks and to develop the organisation's knowledge database

to provide decision-makers with a risk management plan for approval

to provide an accountability mechanism and tool

to facilitate continuing monitoring and review

to provide an audit trail

to share and communicate information

External specialist assistance
means

any group or individual in the community who has the expertise to assist the organisation to deal with any event/incident which may occur

Legislation, codes and national standards relevant to the workplace
may include

award and enterprise agreements and relevant industrial instruments

relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination

relevant industry codes of practice

Likelihood

used as a qualitative description of probability or frequency

Near miss
refers to

any event or incident which, in other circumstances, may have resulted in an injury to a person, damage to property or some other negative impact on the organisation or the community

Risk
means

the chance of something happening that will have an impact upon objectives. It is measured in terms of likelihood and consequences

the potential to lose something of value. The loss may be physical, mental, social or financial

Risk analysis
means

a systematic use of available information to determine how often specified events may occur and the magnitude of their consequences

Risk assessment
means

the overall process of risk analysis and risk evaluation

Risk classification

diseases affecting humans, animals and plants

economic perils, eg, currency fluctuations, interest rates, share market

environmental, eg, noise, contamination, pollution

financial, eg, contractual risks, misappropriation of funds, fraud, fines

human perils, eg, explosions, riots, strikes, sabotage

natural perils, eg, climatic conditions, earthquakes, bushfires, vermin, volcanic activity

occupational health and safety, eg, inadequate safety measures, poor safety management

product liability, eg, design error, substandard quality control, inadequate testing

professional liability, eg, wrong advice, negligence, design error

property damage, eg, fire, water damage, earthquakes, contamination, human error

public liability, eg, public access, egress and safety

security, eg, cash arrangements, vandalism, theft, misappropriation of information, illegal entry

technology, eg, obsolescence, advances and failure

Risk evaluation
means

the process used to determine risk management priorities by comparing the level of risk against predetermined standards, target risk levels or other criteria

Risk evaluation criteria
may include predetermined standards, target risk levels or other criteria
factors relevant to the establishment of criteria are determined through

legislation

regulations

Australian Standards

organisational policies, aims and objectives

operating procedures and guidelines

Risk identification
the process of determining what can happen, why and how
processes for risk identification include but are not limited to

drawing on expertise from within the organisation, eg, brain storming, questionnaires, audits, physical inspections, records of accidents and "near misses"

drawing on expertise from outside the organisation, eg, professional consultants, industry specialists, publications, case studies, media, systems analysis

Risk management
means

the culture, processes and structures that are directed towards the effective management of potential opportunities and adverse effects

Risk register
refers to
a register of all identified risks and documentation of the strategies/plans in place to deal with any event/incident which might occur
includes

source

nature

existing controls

likelihood and consequences

initial rating

vulnerability to external/internal factors

Risk treatment
selection and implementation of appropriate options for dealing with risk
there are five treatment options

avoid the risk (decision not to become involved in a risk situation)

reduce the risk (application of appropriate techniques and management principles to reduce likelihood of an occurrence and/or its consequences)

transfer the risk (shifting the responsibility or burden for loss to another party through legislation, contract, insurance or other means)

finance the risk (fund risk treatment and the financial consequences of risk)

retain the risk (intentionally or unintentionally retaining the responsibility for loss, or financial burden of loss)

Sources of information

past records

relevant experience

industry practice and experience

relevant published literature

test marketing and market research

experiments and prototypes

economic engineering or other models

specialist or expert judgements

Sources of risk
commercial and legal relationships between the organisation and other organisations, eg, suppliers, subcontractors, lessees
economic circumstances of the organisation, country, internationally as well as factors contributing to those circumstances, eg, exchange rates
human behaviour of both those involved and those not involved in the organisation
natural events
political circumstances including legislative changes and factors which may influence other sources of risk
technology and technical issues both internal and external to the organisation
management activities and controls
individual activities
alternatively, sources of risk may be

internal and subject to the organisation's control, eg, group management, equipment failure

external and not under the control of the organisation, eg, natural events, bankruptcy of subcontractor

Techniques for analysing the likelihood and consequences of risks
qualitative, based on

how severe the potential risk may be (severe, high, major, significant, moderate, low, trivial)

the likelihood of the risk happening (almost certain, likely, moderate, unlikely, rare)

the consequences of the risk (extreme, very high, medium, low negligible)
quantitative
semi-quantitative
combined method (combined qualitative and quantitative)

Critical aspects of evidence to be considered
Assessment must confirm sufficient evidence of a systematic approach to the identification of risk in each of the relevant classifications and the development of procedures and strategies to eliminate, isolate or protect people (and/or equipment) in the event of the potential negative event occurring
Assessment of performance should be over a period of time covering all categories of the Range Statements that are applicable in the learners work environment
In particular, assessment must confirm the ability to
review and evaluate previous risk treatment plans and risk management programs
implement risk management systems for projects and activities
use participative arrangements for the review of risk management programs in operational performance
develop and review of risk management performance targets
implement the framework and components of a risk management system, its structures and performance
develop systemic review procedures

Interdependent assessment of units
This unit must be assessed after attainment of competency in the following unit(s)
SRXOHS002B Implement and monitor the organisation's Occupational Health and Safety policies, procedures and programs
SRXRIK001A Undertake risk analysis of activities
This unit must be assessed in conjunction with the following unit(s)
Nil
For the purpose of integrated assessment, this unit may be assessed in conjunction with the following unit(s)
SRXOHS003B Establish, maintain and evaluate the organisation's Occupational Health and Safety system

Required knowledge and skills
Required knowledge
Relevant legislation from all levels of government that affects business operation, especially in regard to Occupational Health and Safety and environmental issues, equal opportunity, industrial relations and anti-discrimination
Strategic, tactical and operational plans of the organisation
Organisational capability to deal with events/incidents
Disaster/emergency/evacuation plans
Legal requirements for operating the business
Relevant awards and industrial agreements
Workplace standards for Occupational Health and Safety and environmental requirements
Required skills
Communication/consultation skills to ensure all relevant groups and individuals are advised of what is occurring and are provided with an opportunity for input
Conflict management skills to mediate, negotiate and/or attempt to obtain consensus between individuals/groups in conflict situations which are dysfunctional in relation to the organisation's performance
Process analysis skills to identify potential risks/hazards of any type
Problem solving skills to deal effectively with risks and hazards as identified
Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities

Resource implications
Physical resources - assessment of this competency requires access to
organisational records, risk audits and policy documents
Human resources - assessment of this unit of competency will require human resources consistent with those outlined in the Assessment Guidelines. That is, assessors (or persons within the assessment team) should
be competent in this unit but preferably be competent in the unit at the level above (ie, SRXRIK003A)
be current in their knowledge and understanding of the industry through provision of evidence of professional activity in the relevant area
have attained the National Competency Standards for Assessment: BSZ401A, BSZ402A and BSZ403A

Consistency in performance
Due to issues such as changing levels of risk, this unit of competency must be assessed over period of time in order to ensure consistency of performance over the Range Statements and contexts applicable to developing risk management programs

Context for assessment
This unit of competency must be assessed in the context of a real sport or recreation organisation. The environment should be safe with the hazards, circumstances and equipment likely to be encountered in a real workplace
Assessment of this unit of competence will usually include observation of processes and procedures, oral and/or written questioning on required knowledge and skills and consideration of required attitudes
Where performance is not directly observed and/or is required to be demonstrated over a "period of time" and/or in a "number of locations", any evidence should be authenticated by colleagues, supervisors, clients or other appropriate persons

Communicating ideas and information
Educating staff about the risk management program (3)

Collecting analysing and organising information
Accessing and analysing information to develop the risk management program (3)

Planning and organising activities
Developing appropriate mitigation strategies (3)

Working with others and in teams
Simulating/testing the effectiveness of the risk management program (3)

Using mathematical ideas and techniques
Calculating probability and consequences associated with risk (2)

Solving problems
Eliminating and/or minimising risk (3)

Using technology
Providing timely access to risk management documentation (2)