Unit of Competency Mapping – Information for Teachers/Assessors – Information for Learners

FNSCRD504 Mapping and Delivery Guide
Manage the credit relationship

Version 1.0
Issue Date: May 2024


Qualification -
Unit of Competency FNSCRD504 - Manage the credit relationship
Description
Employability Skills
Learning Outcomes and Application This unit describes the skills and knowledge required to manage the overall credit management function in an organisation.It applies to individuals in positions of responsibility who use strategic planning and other specialist techniques to perform their work and effectively manage internal and external relationships. 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.
Duration and Setting X weeks, nominally xx hours, delivered in a classroom/online/blended learning setting.

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:

organisational policy, procedures and legislation relevant to credit risk factoring and invoice discounting

common office equipment, technology and consumables

credit product information

relevant software systems and data.

Assessors must satisfy NVR/AQTF assessor requirements.

Prerequisites/co-requisites
Competency Field
Development and validation strategy and guide for assessors and learners Student Learning Resources Handouts
Activities 		Slides
PPT 		Assessment 1 Assessment 2 Assessment 3 Assessment 4
Elements of Competency Performance Criteria              
Element: Manage interaction between credit relationship and business objectives and strategies
  • Apply credit risk factors and knowledge of environmental factors to credit relationship and compare to business objectives and strategies
  • Use effective performance management techniques to achieve effective credit management
       
Element: Deal with debtors in difficult circumstances
  • Implement organisational policy and procedures to identify early warning signs of debtor difficulty and address debtors experiencing difficult circumstances
  • Determine and apply relevant legislative requirements and industry regulations to specific debtor situations
  • Respond considerately, using effective communication skills, to particular debtor circumstances in accordance with organisational policy and procedures
       
Element: Terminate credit relationship
  • Inform clients, where relevant, that the credit relationship is terminated
  • Maintain all records accurately in accordance with legislative requirements
  • Destroy or store relevant documentation in accordance with organisational policy and procedures, and legislative requirements
       


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. Manage interaction between credit relationship and business objectives and strategies

1.1 Apply credit risk factors and knowledge of environmental factors to credit relationship and compare to business objectives and strategies

1.2 Use effective performance management techniques to achieve effective credit management

2. Deal with debtors in difficult circumstances

2.1 Implement organisational policy and procedures to identify early warning signs of debtor difficulty and address debtors experiencing difficult circumstances

2.2 Determine and apply relevant legislative requirements and industry regulations to specific debtor situations

2.3 Respond considerately, using effective communication skills, to particular debtor circumstances in accordance with organisational policy and procedures

3. Terminate credit relationship

3.1 Inform clients, where relevant, that the credit relationship is terminated

3.2 Maintain all records accurately in accordance with legislative requirements

3.3 Destroy or store relevant documentation in accordance with organisational policy and procedures, and legislative requirements

Evidence of the ability to:

follow organisational policy and procedures and comply with relevant legislation when dealing with clients in difficult circumstances and, where relevant, terminating the credit relationship

assess client accounts for credit risk by considering credit risk and environmental factors

respond considerately to clients when managing debt matters, taking difficult circumstances into consideration

maintain all records and dispose of appropriately as required.

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:

describe credit risk and environmental factors

outline effective performance management techniques

explain current organisational policy and procedures for credit risk identification and risk management

explain the interrelationship between debt recovery and business strategy

describe relevant legislative requirements, industry regulations and code of conduct in relation to credit management.

Submission Requirements

List each assessment task's title, type (eg project, observation/demonstration, essay, assignment, 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. Manage interaction between credit relationship and business objectives and strategies

1.1 Apply credit risk factors and knowledge of environmental factors to credit relationship and compare to business objectives and strategies

1.2 Use effective performance management techniques to achieve effective credit management

2. Deal with debtors in difficult circumstances

2.1 Implement organisational policy and procedures to identify early warning signs of debtor difficulty and address debtors experiencing difficult circumstances

2.2 Determine and apply relevant legislative requirements and industry regulations to specific debtor situations

2.3 Respond considerately, using effective communication skills, to particular debtor circumstances in accordance with organisational policy and procedures

3. Terminate credit relationship

3.1 Inform clients, where relevant, that the credit relationship is terminated

3.2 Maintain all records accurately in accordance with legislative requirements

3.3 Destroy or store relevant documentation in accordance with organisational policy and procedures, and legislative 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
Apply credit risk factors and knowledge of environmental factors to credit relationship and compare to business objectives and strategies 
Use effective performance management techniques to achieve effective credit management 
Implement organisational policy and procedures to identify early warning signs of debtor difficulty and address debtors experiencing difficult circumstances 
Determine and apply relevant legislative requirements and industry regulations to specific debtor situations 
Respond considerately, using effective communication skills, to particular debtor circumstances in accordance with organisational policy and procedures 
Inform clients, where relevant, that the credit relationship is terminated 
Maintain all records accurately in accordance with legislative requirements 
Destroy or store relevant documentation in accordance with organisational policy and procedures, and legislative requirements 

Forms

Assessment Cover Sheet

FNSCRD504 - Manage the credit relationship
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

FNSCRD504 - Manage the credit relationship

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: