SKILL  KNOWLEDGE  SAFETY

MSAPMOHS510A - Manage risk

Description

This unit covers the development, implementation and evaluation of a risk management plan for the organisation. It incorporates an assessment of all potential risks facing the organisation and the development of strategies and plans to mitigate all risk situations through elimination, isolation or protection.

Pre Requisites

 This unit has the prerequisite of MSAOHS401A Assess risk

Application

 This competency applies to managers or OHS specialists who are developing or maintaining a risk management plan for their site or organisation. This unit was based on the Australian Risk Management standard AS/NZS4360, 1999 and as such may be applied quite broadly. However, it is probably best applied to health, safety and environment risks and the business and other risks consequent on them. For general business and finance risk units refer to the Finance Training package FNB04

Performance Criteria

 1. Develop risk management plan.    
1.1 Analyse and interpret strategic position and policy on risk management.
1.2 Ensure that an audit is conducted to identify risk management context and potential areas of risk.
1.3 Analyse organisational capability to reduce/control the likelihood of both incidents and consequences.
1.4 Evaluate the risk register to ensure it contains relevant information regarding sources of risk, scenarios for loss of control of the risk, possible consequences, risk controls and action.
1.5 Establish or review risk management policies.
1.6 Evaluate the requirement for training/education for all groups and individuals.
1.7 Identify access to external specialist assistance.
1.8 Establish procedures for ongoing identification of hazards, and assessment and control of risk.
1.9 Consult stakeholders in the development of the plan.

2. Implement risk management plan.    
2.1 Review, in consultation with stakeholders, the ranking of risks and the classifications of levels of risk.
2.2 Place on a monitor/review watch list risks classified as low/acceptable.
2.3 Implement processes to eliminate wherever practicable risks that are unacceptable.
2.4 Implement processes to mitigate/minimise risks that cannot be eliminated in accordance with the risk management plan and the hierarchy of control.
2.5 Document strategies for risk minimisation.

3. Evaluate risk management plan.    
3.1 Establish procedures to regularly review risk management activities.
3.2 Ensure stakeholders have input to the review.
3.3 Examine activities that do not achieve their objective/ performance outcomes to determine cause.
3.4 Identify targets for improvement and update plan.
3.5 Establish evaluation of risk management as a key component of all projects/activities.

Required Skills & Knowledge

 This describes the essential skills and knowledge and their level required for this unit.

The person must demonstrate understanding of specialised knowledge with depth in some areas. Required knowledge is to be limited to that which is sufficient to perform particular risk management functions. Competence includes the ability to apply and explain:
  •     relevant legislation from all levels of government that effects business operation, especially in regard to OHS and environmental issues, EEO, industrial relations and anti-discrimination
  •     the legal implications of deeming identified risks as acceptable
  •     strategic, tactical and operational plans of the organisation
  •     legal requirements for operating the business relevant to the area of responsibility
  •     relevant awards and industrial agreements
  •     workplace standards for OHS and environmental management
  •     internal or external audit methods
  •     focus groups processes
  •     hazard analysis processes
  •     investigation reports
  •     review of data such as hazard and incident reports, maintenance records, production records.

Language, literacy and numeracy requirements
This unit requires the ability to communicate high level material using all modes of communication to all levels.
Writing is required to the level of writing reports, policies and procedures.
Numeracy interpret and manipulate technical data.

Range Statement

 Context
Persons and organisations engaged in assessing managers in this unit need to have appropriate qualifications and experience in risk management as well as workplace assessment.
Risk management is the systematic process that is directed towards identifying hazards, assessing the risk and developing controls to minimise the risk and monitor the effectiveness of the controls (and taking action as required).
Relevant groups and individuals refers to those personnel who have knowledge about the issue being dealt with and the expertise to assist the decision making process.
External specialist assistance refers to any group or individual in the community who has the expertise to assist the organisation to deal with any event/incident which may occur.

Risks
Risks may include:
  •     injury or disease
  •     environmental
  •     product failure
  •     financial/economic loss/failure
  •     damage to property/plant/equipment
  •     industrial disputes
  •     professional incompetence
  •     natural disasters
  •     security failure (including criminal or terrorist activities)
  •     equipment/system failures
  •     political events.

Legislation etc
Legislation, codes and national standards relevant to the workplace may include:
  •     award and organisation agreements and relevant industrial instruments
  •     relevant legislation from all levels of government that affects business operation, especially in regard to OHS, environmental issues, EEO, industrial relations and anti-discrimination
  •     relevant industry codes of practice.

Risk ranking
Risk ranking is a highly subjective process of rating risks according to their severity and likelihood. Common ranking systems are based on matrices or nomograms.

Procedures
All operations are performed in accordance with procedures.
Procedures include all relevant workplace procedures, work instructions, temporary instructions and relevant industry and government codes and standards.
All operations to which this unit applies are subject to stringent health, safety and environment requirements, which may be imposed through State or Federal legislation, and these must not be compromised at any time. Where there is an apparent conflict between Performance Criteria and HSE requirements, the HSE requirements take precedence.

Evidence Guide

 Overview of assessment
A holistic approach should be taken to the assessment.
Assessors must be satisfied that the person can consistently perform the unit as a whole, as defined by the Elements, Performance Criteria and skills and knowledge.
Where the assessee does not currently possess evidence of competency in MSAOHS401A Assess risk, it may be co-assessed with this unit.

Critical aspects for assessment and evidence required to demonstrate competency in this unit
It is essential that competence is demonstrated in the knowledge and skills defined in this unit. These may include the ability to:
  •     develop, implement and evaluate the development of plans to eliminate
  •     isolate or protect people (and/or equipment) in the event of the potential negative event occurring.

The emphasis should be on the ability to avoid/eliminate critical incidents rather than on recovery from a disaster.
Consistent performance should be demonstrated. In particular look for:
  •     communication/consultation skills to ensure all relevant groups and individuals are briefed, consulted and have an opportunity to input
  •     negotiation skills to mediate, negotiate to obtain consensus between individuals/groups on the risk management plan and (where required and appropriate) categorisation of risks
  •     ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities
  •     ability to apply a systematic process to development and documentation of plan and implementation of actions.

These aspects may be best assessed using a range of scenarios/case studies/what ifs as the stimulus with a walk through forming part of the response. These assessment activities should include a range of problems, including new, unusual and extreme situations that may have been generated from the past incident history of the workplace, incidents on similar plants around the world, hazard analysis activities (eg HAZOP) and similar sources.

Assessment method and context
Assessment will occur in an industrial site/plant and will be undertaken in a work-like environment.

Competence in this unit may be assessed:
  •     on an appropriate, industrial plant/site
  •     in a situation allowing the generation of evidence of the ability to respond to problems
  •     by using a suitable simulation and/or a range of case studies/scenarios
  •     through a combination of these techniques.
In all cases it is expected that practical assessment will be combined with targeted questioning to assess the underpinning knowledge and theoretical assessment will be combined with appropriate practical/simulation or similar assessment. Assessors need to be aware of any cultural issues that may affect responses to questions.
Assessment processes and techniques must be culturally appropriate and appropriate to the oracy, language and literacy capacity of the assessee and the work being performed.

Specific resources for assessment
This section should be read in conjunction with the Range Statement for this unit of competency. Resources required include suitable access to an operating plant or equipment that allows for appropriate and realistic simulation. A bank of case studies/scenarios and questions will also be required to the extent they form part of the assessment method. Questioning may take place either in the workplace, or in an adjacent, quiet facility such as an office or lunchroom. No other special resources are required.
Access must be provided to appropriate learning and/or assessment support when required. Where applicable, physical resources should include equipment modified for people with disabilities.

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