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. Assess requirement for security | 1.1 Undertake risk analysis of credit applications in accordance with organisational credit policy and guidelines to determine requirements for security 1.2 Determine customers’ level of risk and identify security requirements |
2. Identify available security options and suitability of available securities | 2.1 Explain requirements for security to customers, considering any special needs of customers 2.2 Identify range of securities available and determine which are appropriate to type of credit facility 2.3 Negotiate with customers to determine security arrangements as required within organisational guidelines |
3. Apply appropriate security | 3.1 Analyse assets and conduct valuations to confirm value of security 3.2 Register security interest in accordance with legislative requirements |
4. Monitor and review effectiveness of security arrangement | 4.1 Maintain knowledge of current conditions in market and keep updated on any changes in organisation's credit policy and guidelines 4.2 Monitor customer accounts to confirm appropriateness of security arrangements 4.3 Amend security arrangement documentation to reflect changes in customers’ relationships or circumstances where necessary |
Evidence of the ability to:
comply with relevant legislative requirements, industry regulations and codes of practice relating to security in credit applications
interpret and implement an organisation’s credit policy in regards to security
communicate effectively with customers explaining the requirement for security and their options in providing security
analyse the security customers can provide and establish the most appropriate option that will minimise risk to the organisation
maintain security for the credit arrangement in line with changes in organisational credit policy.
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:
outline current conditions in the credit management sector
describe key features of organisational credit policy and procedures
explain the full range of security options for credit that currently apply
outline the legislation, regulations and codes of practice relevant to security and the personal property securities register (PPSR)
discuss verbal and non-verbal communication
explain organisational guidelines when dealing with customers who have special needs.
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, loan security and risk minimisation information
relevant software systems and data
organisational policy and procedures.
Assessors must satisfy NVR/AQTF assessor requirements.