List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Satisfy initial enquiry | 1.1 Respond to initial customer enquiries on type, range and availability of credit and provide information with courtesy, respect and recognition of special needs of customers 1.2 Provide basic information, such as terms and conditions and interest rate, and determine potential securitisation needs in accordance with credit policy and legislative requirements |
2. Assess and verify credit information | 2.1 Verify credit applications and documentation in accordance with organisational policy and procedures to maintain accuracy of credit database information 2.2 Analyse credit information to establish that sufficient evidence of accurate information has been provided 2.3 Maintain liaison with customers and relevant internal and external personnel to ensure information is kept up to date and disseminated appropriately |
3. Assess risk | 3.1 Identify and evaluate possible risks to determine overall level of risk associated with application 3.2 Identify need to take security, minimise risk exposure and provide protection against risk in accordance with organisational risk management policy 3.3 Document risk assessment in accordance with organisational procedures |
4. Establish credit terms and limits | 4.1 Make decision on how to proceed with credit application based on assessed information and in accordance with organisational risk management policy 4.2 Determine credit terms and limits within organisational credit policy guidelines and advise customers of credit decisions promptly and courteously 4.3 Complete credit account administration according to organisational credit policy and timelines, and legislative requirements |
Evidence of the ability to:
communicate with customers, considering their special needs, to explain:
features of credit products
application and security requirements
the credit decision
comply with appropriate legislation, industry regulations and organisational guidelines when analysing and documenting risk in the assessment of credit applications
use data entry and recording systems to capture and analyse credit information and complete risk assessment.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
To complete the unit requirements safely and effectively, the individual must:
list the features of credit products and their application requirements
describe the special needs of customers
explain the organisational procedures and systems relating to assessing credit applications
identify the possible risks associated with credit applications
describe the types of security that can be taken to minimise risk exposure
describe the key features of organisational credit and risk management policies
identify and outline the key requirements of relevant legislation and industry regulations in regards to risk assessment.
Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the credit management field of work and include access to:
common office equipment, technology and consumables
credit product information
relevant software systems and data
organisational policy and procedures.
Assessors must satisfy NVR/AQTF assessor requirements.