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Follow the links below to find material targeted to the unit's elements, performance criteria, required skills and knowledge

Elements and Performance Criteria

1. Monitor status of corporate insolvency and analyse potential risk
   • Identify factors in corporate client accounts that may contribute to possible corporate insolvency situations and risk factors to creditor organisation
   • Analyse impact of insolvency options that may be taken by liquidator, administrator, receiver or other third party
   • Discuss possible effects of actions with line manager if required to determine correct action
2. Determine appropriate action
   • Evaluate corporate 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 to implement appropriate action and commence legal proceedings
3. Review circumstances which led to corporate insolvency situation
   • Evaluate causes for corporate insolvency and review organisational procedures to determine mechanisms to identify contributing factors and prevent recurrence of loss and exposure to insolvency risk
   • Implement outcome of review as required

Performance Evidence

Evidence of the ability to:

follow organisational policy and procedures and legislative requirements to determine required action related to corporate insolvency

complete relevant documentation to ensure legal proceedings are undertaken correctly

evaluate circumstances of corporate insolvency and determine changes to organisational procedures as required.

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:

describe factors that lead to corporate insolvency

outline potential insolvency actions

describe a range of insolvency situations and risk factors for the creditor organisation

explain key features of current legislative requirements relating to corporate insolvency

explain the application of organisational policy to corporate insolvency management

identify and describe the full range of credit options within legal requirements

define relevant industry indicators of insolvency.

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