Application
This unit may be adapted to meet the specific needs of debt recovery and credit management in all financial sectors and work environments. |
Prerequisites
Respond to personal insolvency situations | ||
Elements and Performance Criteria
ELEMENT | PERFORMANCE CRITERIA |
1. Monitor the status of the corporate insolvency and analyse potential risk | 1.1. Factors that may contribute to a possible corporate insolvency situation and the risk factors to the creditor organisation are assessed 1.2. Impact of actions that may be taken by a liquidator, administrator, receiver, or other third party is analysed before consideration of action |
2. Determine appropriate action | 2.1. Corporate insolvency actions are evaluated in accordance with statutory rights and obligations 2.2. Appropriate claims, proof of debt and Personal Property Securities (PPS) procedures are completed in accordance with statutory and regulatory requirements 2.3. Appropriate claims against third parties are evaluated and initiated |
3. Review the circumstances which led to the corporate insolvency situation | 3.1. Causes for business failure are evaluated and procedures reviewed as a mechanism to prevent recurrence of loss, contributing factors and exposure 3.2. Outcome of review is implemented as required |
Required Skills
|
Required skills |
well-developed communication skills to: determine and confirm insolvency situations and to clarify this 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 insolvency related calculations use relevant software, spreadsheets and databases access web based information services research and analysis for accessing, interpreting and managing business and personal information to determine insolvency risk well-developed interpersonal skills to deal effectively with insolvency stakeholders judgement skills for making insolvency risk determinations organisational skills, including the ability to plan and sequence work |
Required knowledge |
current knowledge of relevant legislative requirements developments in the credit management sector and company policy full range of credit options within legal requirements relevant aspects of trust law relevant industry indicators |
Evidence Required
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 apply the principles of corporate insolvency to insolvency actions accurately complete lodgement of claims and proof of debt, enforcement of security and legal proceedings documentation. |
Context of and specific resources for assessment | Assessment must ensure: competency is demonstrated in the context of the financial services other organisations that offer credit facilities 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 relevant organisational policies and procedures and legislation. |
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 business simulations or scenarios evaluating samples of work accessing and validating third party reports. |
Guidance information for assessment |
Range Statement
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. | |
Insolvency situations may include | controllerships court liquidations deeds of company arrangements liquidations receiverships schemes of company arrangements voluntary administrations. |
Potential risk factors may include: | Australian Bureau of Statistics (ABS) information Australian Securities and Investments Commission (ASIC) information commercial repercussions commercial return versus outlay cost for recovery industry trade bureau information Insolvency and Trustee Service Australia (ITSA) information voidable transactions. |
Statutory and legislative requirements may include: | appropriate sections of the Income Tax Assessment Act Bankruptcy Act Bills of Sale and Other Instruments Act Cheques and Payment Orders Act Corporations Act Fair Trading Acts National Consumer Credit Protection Acts Partnership Act Personal Property Securities Act Privacy Act Sales of Goods Act Trade Practices Act Small Debts Court Act or equivalent. |
Sectors
Unit sector | Credit management |
Competency Field
Competency field |
Employability Skills
This unit contains employability skills. |
Licensing Information
Not applicable.