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Elements and Performance Criteria

1. Assess requirement for security
   • Undertake risk analysis of credit applications in accordance with organisational credit policy and guidelines to determine requirements for security
   • Determine customers’ level of risk and identify security requirements
2. Identify available security options and suitability of available securities
   • Explain requirements for security to customers, considering any special needs of customers
   • Identify range of securities available and determine which are appropriate to type of credit facility
   • Negotiate with customers to determine security arrangements as required within organisational guidelines
3. Apply appropriate security
   • Analyse assets and conduct valuations to confirm value of security
   • 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
   • Monitor customer accounts to confirm appropriateness of security arrangements
   • Amend security arrangement documentation to reflect changes in customers’ relationships or circumstances where necessary

Performance Evidence

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.

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Knowledge Evidence

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.

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