Application
This unit describes the skills and knowledge required to determine and implement appropriate security options in relation to individual customers to protect the organisation against loss and exposure.
It applies to individuals who may use a range of specialised techniques and strategies to manage their work outcomes.
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. Assess requirement for security | 1.1 Undertake risk analysis of credit applications in accordance with organisational credit policy and guidelines to determine requirements for security 1.2 Determine customers’ level of risk and identify security requirements |
2. Identify available security options and suitability of available securities | 2.1 Explain requirements for security to customers, considering any special needs of customers 2.2 Identify range of securities available and determine which are appropriate to type of credit facility 2.3 Negotiate with customers to determine security arrangements as required within organisational guidelines |
3. Apply appropriate security | 3.1 Analyse assets and conduct valuations to confirm value of security 3.2 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 4.2 Monitor customer accounts to confirm appropriateness of security arrangements 4.3 Amend security arrangement documentation to reflect changes in customers’ relationships or circumstances where necessary |
Evidence of Performance
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.
Evidence of Knowledge
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.
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, loan security and risk minimisation 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 | 1.1, 2.2, 3.1, 4.1 , 4.2 | Analyses and interprets relevant legislative and regulatory information to establish requirements and identifies and assesses risk from analysis of a range of documents containing textual and numerical information |
Writing | 3.1, 3.2, 4.2, 4.3 | Selects appropriate linguistic structures and text required to establish a customer profile, clarify options, detail service requirements and obligations, and register and amend relevant documentation in compliance with organisational and regulatory requirements |
Oral Communication | 2.1, 2.3 | Participates effectively in interactions using well developed strategies to elicit facts, exchange relevant information and negotiate satisfactory outcomes for internal and external stakeholders |
Numeracy | 1.1, 1.2, 2.1, 2.2, 3.2, 4.1 | Interprets and analyses numerically expressed information from a range of sources to identify appropriate security, performs calculations to establish value and monitors security arrangements to prevent loss |
Navigate the world of work | 1.1, 1.2, 3.1, 3.2 | 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 | 2.3, 3.1, 3.2 | Uses a range of strategies and reads verbal and non-verbal signals to establish a sense of connection and build rapport with customers Recognises and accommodates the basic differences and priorities of others |
Get the work done | 1.1, 2.2, 3.2, 4.1, 4.2 | Makes routine decisions and implements standard procedures for routine tasks, using formal decision-making processes for more complex and non-routine situations 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