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Evidence Guide: FNSCRD401 - Assess credit applications

Student: __________________________________________________

Signature: _________________________________________________

Tips for gathering evidence to demonstrate your skills

The important thing to remember when gathering evidence is that the more evidence the better - that is, the more evidence you gather to demonstrate your skills, the more confident an assessor can be that you have learned the skills not just at one point in time, but are continuing to apply and develop those skills (as opposed to just learning for the test!). Furthermore, one piece of evidence that you collect will not usualy demonstrate all the required criteria for a unit of competency, whereas multiple overlapping pieces of evidence will usually do the trick!

From the Wiki University

 

FNSCRD401 - Assess credit applications

What evidence can you provide to prove your understanding of each of the following citeria?

Satisfy initial enquiry

  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
  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
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

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Provide basic information, such as terms and conditions and interest rate, and determine potential securitisation needs in accordance with credit policy and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess and verify credit information

  1. Verify credit applications and documentation in accordance with organisational policy and procedures to maintain accuracy of credit database information
  2. Analyse credit information to establish that sufficient evidence of accurate information has been provided
  3. Maintain liaison with customers and relevant internal and external personnel to ensure information is kept up to date and disseminated appropriately
Verify credit applications and documentation in accordance with organisational policy and procedures to maintain accuracy of credit database information

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Analyse credit information to establish that sufficient evidence of accurate information has been provided

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain liaison with customers and relevant internal and external personnel to ensure information is kept up to date and disseminated appropriately

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assess risk

  1. Identify and evaluate possible risks to determine overall level of risk associated with application
  2. Identify need to take security, minimise risk exposure and provide protection against risk in accordance with organisational risk management policy
  3. Document risk assessment in accordance with organisational procedures
Identify and evaluate possible risks to determine overall level of risk associated with application

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Identify need to take security, minimise risk exposure and provide protection against risk in accordance with organisational risk management policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Document risk assessment in accordance with organisational procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Establish credit terms and limits

  1. Make decision on how to proceed with credit application based on assessed information and in accordance with organisational risk management policy
  2. Determine credit terms and limits within organisational credit policy guidelines and advise customers of credit decisions promptly and courteously
  3. Complete credit account administration according to organisational credit policy and timelines, and legislative requirements
Make decision on how to proceed with credit application based on assessed information and in accordance with organisational risk management policy

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine credit terms and limits within organisational credit policy guidelines and advise customers of credit decisions promptly and courteously

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Complete credit account administration according to organisational credit policy and timelines, and legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Assessed

Teacher: ___________________________________ Date: _________

Signature: ________________________________________________

Comments:

 

 

 

 

 

 

 

 

Instructions to Assessors

Evidence Guide

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

Required Skills and Knowledge

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 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.

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.