Application
This unit describes the skills and knowledge required to assess and verify information provided in credit applications, establish credit terms and limits, and notify customers of credit application outcomes.
It applies to individuals who may use a range of organisational techniques to manage credit and debt recovery.
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.
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
Elements describe the essential outcomes. | Performance criteria describe the performance needed to demonstrate achievement of the element. |
1. Satisfy initial enquiry | 1.1 Respond to initial customer enquiries on type, range and availability of credit and provide information with courtesy, respect and recognition of special needs of customers 1.2 Provide basic information, such as terms and conditions and interest rate, and determine potential securitisation needs in accordance with credit policy and legislative requirements |
2. Assess and verify credit information | 2.1 Verify credit applications and documentation in accordance with organisational policy and procedures to maintain accuracy of credit database information 2.2 Analyse credit information to establish that sufficient evidence of accurate information has been provided 2.3 Maintain liaison with customers and relevant internal and external personnel to ensure information is kept up to date and disseminated appropriately |
3. Assess risk | 3.1 Identify and evaluate possible risks to determine overall level of risk associated with application 3.2 Identify need to take security, minimise risk exposure and provide protection against risk in accordance with organisational risk management policy 3.3 Document risk assessment in accordance with organisational procedures |
4. Establish credit terms and limits | 4.1 Make decision on how to proceed with credit application based on assessed information and in accordance with organisational risk management policy 4.2 Determine credit terms and limits within organisational credit policy guidelines and advise customers of credit decisions promptly and courteously 4.3 Complete credit account administration according to organisational credit policy and timelines, and legislative requirements |
Evidence of Performance
Evidence of the ability to:
communicate with customers, considering their special needs, to explain:
features of credit products
application and security requirements
the credit decision
comply with appropriate legislation, industry regulations and organisational guidelines when analysing and documenting risk in the assessment of credit applications
use data entry and recording systems to capture and analyse credit information and complete risk assessment.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once.
Evidence of Knowledge
To complete the unit requirements safely and effectively, the individual must:
list the features of credit products and their application requirements
describe the special needs of customers
explain the organisational procedures and systems relating to assessing credit applications
identify the possible risks associated with credit applications
describe the types of security that can be taken to minimise risk exposure
describe the key features of organisational credit and risk management policies
identify and outline the key requirements of relevant legislation and industry regulations in regards to risk assessment.
Assessment Conditions
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.
Foundation Skills
This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill | Performance Criteria | Description |
Reading | 2.1, 2.2, 3.1 | Analyses and carefully reviews a range of documents to verify details, assess risk and inform decisions |
Writing | 2.3, 3.3, 4.3 | Records information accurately from spoken texts, and integrates information from a range of other sources using vocabulary, numerical data and organisational structures to convey precise meaning in required formats |
Oral Communication | 1.1,1.2, 2.3, 4.2 | Engages effectively using vocabulary and structure appropriate to the requirements of a diverse audience Uses clear and direct language to convey details, and careful listening and questioning techniques to elicit and verify information from internal and external stakeholders |
Numeracy | 1.2, 2.1, 2.2, 3.1-3.2, 4.1, 4.2 | Interprets and analyses numerically expressed information from a range of sources to assess risk Performs calculations to establish credit levels and monitors and reviews financial data for accuracy and compliance |
Navigate the world of work | 1.2, 2.1, 3.2, 3.3, 4.1, 4.2, 4.3 | Accepts responsibility and ownership for the task and makes decisions on completion parameters and the need for coordination with others Takes personal responsibility for following explicit and implicit policies, procedures and legislative requirements Identifies and acts on issues that contravene relevant policies, procedures and legal requirements |
Interact with others | 1.1, 1.2, 2.3, 4.2 | Implements strategies for a diverse range of colleagues and customers to build rapport and foster strong relationships |
Get the work done | 1.2, 2.2, 2.3, 3.1, 3.3, 4.2, 4.3 | Makes critical decisions quickly and intuitively in complex situations, taking into consideration a range of variables including the outcomes of previous decisions Takes responsibility for planning, sequencing and prioritising tasks and own workload for efficiency and effective outcomes Uses the main features and functions of digital tools to complete work tasks |
Sectors
Credit management