What Does This Unit Mean?
This unit is about understanding how business risks are identified, assessed, managed and monitored to support the achievement of organisational objectives.
The unit requires learners to evaluate business risk management principles, risk assessment methodologies, business continuity arrangements and crisis management processes.
The learner is also expected to demonstrate how risk management processes are developed, implemented, reviewed and continually improved to support organisational resilience and informed decision-making.
In simple terms, this unit is asking:
“Can you develop, implement and evaluate business risk management processes that help your organisation achieve its objectives and remain resilient when faced with uncertainty, disruption or crisis?”
What Competence Does This Unit Require?
You are expected to demonstrate that you can:
- Understand business risk management principles and standards.
- Evaluate different types of business risks and their potential impact.
- Understand the relationship between risk management, business continuity and crisis management.
- Apply risk assessment and risk monitoring techniques.
- Establish effective risk governance arrangements.
- Develop practical and proportionate risk management processes.
- Develop contingency and business continuity arrangements.
- Integrate risk management into operational activities.
- Evaluate the effectiveness of risk management processes.
- Promote a positive risk management culture.
The learner should demonstrate how business risks are identified, assessed, monitored and governed to support organisational objectives and decision-making.
What to Prepare
Prepare a report, presentation or project that explains how business risks are identified, assessed, monitored and governed within your organisation.
Important Context
The report must be based on your organisation's actual risk management arrangements, operational activities, strategic objectives and workplace examples. Generic descriptions of risk management theory alone will not be sufficient. You should demonstrate how business risks are managed within your own organisation and support your evaluation with relevant organisational evidence where appropriate.
Your Report Should
- Analyse the business risk management standards, frameworks or methodologies used within the organisation.
- Explain how different categories of business risk are identified and assessed.
- Evaluate the relationship between risk management, business continuity and crisis management.
- Evaluate the use of scenario planning and crisis management approaches.
- Explain how risk probability and impact are assessed.
- Explain how risks are monitored and reviewed.
- Explain how risk governance, ownership and accountability arrangements operate.
Supporting Workplace Evidence
The report should reference relevant organisational evidence where appropriate. This may include risk registers, risk assessments, business continuity plans, crisis management plans, governance structures, board reports, risk monitoring reports, risk appetite statements or other relevant workplace documents.
Assessment Criteria Covered
1.1
1.2
1.3
1.4
1.5
1.6
1.7
The learner should demonstrate how risk management processes are developed, implemented, maintained and integrated into organisational activities.
What to Prepare
Prepare a report, presentation or project that explains how business risk management processes are developed, implemented and maintained within your organisation.
Important Context
The report must be based on your organisation's actual risk management arrangements, operational processes and business requirements. Generic descriptions of risk management processes alone will not be sufficient. You should demonstrate how risk management processes operate within your own organisation and support your evaluation with relevant organisational evidence where appropriate.
Your Report Should
- Explain how risk management strategies, policies and criteria are reviewed and maintained.
- Explain how risk profiles are reviewed and updated to remain current and relevant.
- Explain how practical and proportionate risk management processes are developed.
- Explain how contingency arrangements and business disruption plans are developed.
- Explain how risk management processes are integrated into operational plans and activities.
Supporting Workplace Evidence
The report should reference relevant organisational evidence where appropriate. This may include risk management policies, risk registers, business continuity plans, contingency plans, operational plans, management reviews, governance reports or other relevant workplace documents.
Assessment Criteria Covered
2.1
2.2
2.3
2.4
2.5
The learner should demonstrate how the effectiveness of business risk management processes is evaluated and improved.
What to Prepare
Prepare a report, presentation or project that evaluates the effectiveness of business risk management processes within your organisation.
Important Context
The report must be based on your organisation's actual risk management activities, performance information, governance arrangements and workplace examples. Generic descriptions of risk evaluation techniques alone will not be sufficient. You should demonstrate how the effectiveness of risk management is evaluated within your own organisation and support your evaluation with relevant organisational evidence where appropriate.
Your Report Should
- Evaluate the suitability of risk evaluation techniques used within the organisation.
- Explain how quantitative and qualitative information is used to evaluate risks.
- Identify opportunities for improving risk identification, assessment and management processes.
- Evaluate how the organisation promotes a culture that accepts, understands and manages risk appropriately.
Supporting Workplace Evidence
The report should reference relevant organisational evidence where appropriate. This may include risk reviews, audit reports, performance reports, management reviews, lessons learned reports, governance reviews, employee engagement activities, risk culture initiatives or other relevant workplace documents.
Assessment Criteria Covered
3.1
3.2
3.3
3.4
Important Note for Learners
The competence requirements outlined above describe the practical workplace activities, systems, processes and records that may be used to demonstrate competence against this unit.
As this is a competency-based qualification, learners are expected to demonstrate that they can apply their health and safety knowledge and skills within their own workplace or working environment.
In addition to the competence-based assessment criteria, this unit also contains a number of knowledge-based assessment criteria. These are typically assessed through:
- Written responses
- Professional discussions with the assessor
- Assessor questioning
In most cases, the knowledge-based assessment criteria relate directly to the same workplace activities, systems and processes described above. Learners will therefore often find that the workplace evidence gathered to demonstrate competence also helps them prepare for and satisfy the knowledge assessment requirements.