Assessor Resource

FNSCRD501
Respond to personal insolvency situations

Assessment tool

Version 1.0
Issue Date: May 2024


This unit describes the skills and knowledge required to monitor personal insolvency, analyse risk impact on creditors and determine required actions.

It applies to individuals who may use a range of managerial techniques to analyse and review actions performed in their job role.

Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Refer to the FNS Implementation Guide Companion Volume or the relevant regulator for specific guidance on requirements.

You may want to include more information here about the target group and the purpose of the assessments (eg formative, summative, recognition)


Evidence Required

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. Monitor status of insolvency and analyse potential risk

1.1 Identify factors in client accounts that may contribute to a possible personal insolvency situation and risk factors to the organisation

1.2 Assess impact of insolvency options that may be taken by a trustee or other third party

2. Determine appropriate action

2.1 Evaluate personal insolvency actions in accordance with legislative rights and obligations of both debtor and creditor

2.2 Complete appropriate documentation in accordance with legislative requirements and organisational policy and procedures to implement appropriate action and commence legal proceedings

3. Review circumstances which led to the personal insolvency situation

3.1 Evaluate causes for insolvency and review procedures to prevent recurrence of loss, contributing factors and exposure

3.2 Implement outcome of review, as required

Evidence of the ability to:

monitor relevant client accounts for possible personal insolvency situations or risks to the organisation

accurately complete relevant documentation relating to taking insolvency action

implement legislative requirements and organisational policy in responding to personal insolvency situations.

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:

identify and describe the factors that lead to personal insolvency

outline potential risks to the organisation of insolvency situations

outline potential insolvency actions that may be taken

explain key features of relevant legislative requirements relating to insolvency

explain the application of organisational policy and procedures on insolvency management

describe the full range of insolvency options within legal requirements

explain relevant industry indicators of insolvency risk.

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.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assingnment, checklist) and due date here

Assessment task 1: [title]      Due date:

(add new lines for each of the assessment tasks)

Assessment Tasks

Copy and paste from the following data to produce each assessment task. Write these in plain English and spell out how, when and where the task is to be carried out, under what conditions, and what resources are needed. Include guidelines about how well the candidate has to perform a task for it to be judged satisfactory.

ELEMENT

PERFORMANCE CRITERIA

Elements describe the essential outcomes.

Performance criteria describe the performance needed to demonstrate achievement of the element.

1. Monitor status of insolvency and analyse potential risk

1.1 Identify factors in client accounts that may contribute to a possible personal insolvency situation and risk factors to the organisation

1.2 Assess impact of insolvency options that may be taken by a trustee or other third party

2. Determine appropriate action

2.1 Evaluate personal insolvency actions in accordance with legislative rights and obligations of both debtor and creditor

2.2 Complete appropriate documentation in accordance with legislative requirements and organisational policy and procedures to implement appropriate action and commence legal proceedings

3. Review circumstances which led to the personal insolvency situation

3.1 Evaluate causes for insolvency and review procedures to prevent recurrence of loss, contributing factors and exposure

3.2 Implement outcome of review, as required

Evidence of the ability to:

monitor relevant client accounts for possible personal insolvency situations or risks to the organisation

accurately complete relevant documentation relating to taking insolvency action

implement legislative requirements and organisational policy in responding to personal insolvency situations.

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:

identify and describe the factors that lead to personal insolvency

outline potential risks to the organisation of insolvency situations

outline potential insolvency actions that may be taken

explain key features of relevant legislative requirements relating to insolvency

explain the application of organisational policy and procedures on insolvency management

describe the full range of insolvency options within legal requirements

explain relevant industry indicators of insolvency risk.

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.

Copy and paste from the following performance criteria to create an observation checklist for each task. When you have finished writing your assessment tool every one of these must have been addressed, preferably several times in a variety of contexts. To ensure this occurs download the assessment matrix for the unit; enter each assessment task as a column header and place check marks against each performance criteria that task addresses.

Observation Checklist

Tasks to be observed according to workplace/college/TAFE policy and procedures, relevant legislation and Codes of Practice Yes No Comments/feedback
Identify factors in client accounts that may contribute to a possible personal insolvency situation and risk factors to the organisation 
Assess impact of insolvency options that may be taken by a trustee or other third party 
Evaluate personal insolvency actions in accordance with legislative rights and obligations of both debtor and creditor 
Complete appropriate documentation in accordance with legislative requirements and organisational policy and procedures to implement appropriate action and commence legal proceedings 
Evaluate causes for insolvency and review procedures to prevent recurrence of loss, contributing factors and exposure 
Implement outcome of review, as required 

Forms

Assessment Cover Sheet

FNSCRD501 - Respond to personal insolvency situations
Assessment task 1: [title]

Student name:

Student ID:

I declare that the assessment tasks submitted for this unit are my own work.

Student signature:

Result: Competent Not yet competent

Feedback to student

 

 

 

 

 

 

 

 

Assessor name:

Signature:

Date:

Assessment Record Sheet

FNSCRD501 - Respond to personal insolvency situations

Student name:

Student ID:

Assessment task 1: [title] Result: Competent Not yet competent

(add lines for each task)

Feedback to student:

 

 

 

 

 

 

 

 

Overall assessment result: Competent Not yet competent

Assessor name:

Signature:

Date:

Student signature:

Date: