The unit may be applied in financial and other organisations offering credit facilities.

ELEMENT

PERFORMANCE CRITERIA

1. Identify available securitisation options

1.1. Any difference between legislative and regulatory securities is understood and applied as appropriate to both real and personal property

1.2. Legislative and regulatory requirements to the establishment of a security interest are adhered to.

2. Assess if security is required and identify appropriateness of securities available

2.1. The customer's risk profile is determined

2.2. Risk analysis is undertaken in accordance with organisation guidelines for securitisation to determine requirement for security

2.3. Where security is required the range of securities available is identified and determination is made as to which are appropriate to the type of credit facility

2.4. Valuations may be conducted and assets analysed where applicable to confirm value of security

3. Apply appropriate security

3.1. Reasons for the necessity of security are fully and clearly detailed to customers, verbally or in writing, using clear communication and reliable assistance to ensure good customer relations

3.2. Negotiation may occur with the customer in the determining of the security arrangement within defined parameters and organisation guidelines and obligations

3.3. Security interest is registered in accordance with legislative requirements

4. Monitor and review effectiveness of security arrangement

4.1. Monitor customer's account to confirm appropriateness of security arrangement

4.2. Where necessary amend the security arrangement documentation to reflect changes in customer relationship or circumstances

Required skills

communication skills to:

determine and confirm security requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences, comprehension, age, possible disability and language level of the customer

numeracy and IT skills to:

perform loan related calculations

access and update account records electronically

access web-based information services

well developed literacy skills to:

read and interpret documentation from a variety of sources and loan security related information

draft loan security documentation

research and analysis skills for:

risk assessment

accessing, interpreting and managing information

ensuring compliance with relevant emerging legislation and industry development

judgement skills for making credit risk decisions

organisational skills, including the ability to plan and sequence work

Required knowledge

current climate of credit management sector

current developments in the credit management sector and all relevant organisation policy

current full range of security options for credit

relevant legislative requirements

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

interpret and implement an organisation's credit policy

detail credit security options to customers

analyse customer security to establish the most appropriate solutions that minimise risk to the organisation

clarify information for all credit accounts

determine, with customer input, a satisfactory outcome for security that suits the customer's circumstances

use reliable and honest techniques to assist customers to select appropriate security options.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

access to organisational policy and procedures information for loan security and risk minimisation.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills

setting and reviewing workplace projects and business simulations or scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Guidelines for securitisation may include:

assessment of credit amount

high risk loans

reason for

extending credit finance registration on Personal Properties Security Register (PPSR)

Range of securities may include:

bills of sale

chattel mortgages

commercial securities

fixed term deposits

liens

life insurance policies

other property

real estate mortgages

registration on the Personal Property Security Register (PPRS).

Clear communication and reliable assistance may include:

verbal

written.

Organisation guidelines and obligations may cover:

accepting and rejecting credit applications

gathering information and its evaluation

legal obligations and framework

liaison, information dissemination and marketing to internal and external parties

maintenance invoices and other appropriate files

maintenance of customer account

minimising risk

overall organisation goals and objectives

referral to appropriate departments and/or individuals

reviewing and adjusting credit limits for established customers

safe storage of security documentation

setting credit limits or credit lines for applications

trading terms and credit limits.

Credit security arrangement documentation may include:

bank guarantee

documentation relating to registration on the PPSR

secured or unsecured third party guarantee

trade credit insurance.

Unit sector

Credit management

This unit contains employability skills.