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Evidence Guide: FNSCRD504 - Manage the credit relationship

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

 

FNSCRD504 - Manage the credit relationship

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

Manage interaction between credit relationship and business objectives and strategies

  1. Apply credit risk factors and knowledge of environmental factors to credit relationship and compare to business objectives and strategies
  2. Use effective performance management techniques to achieve effective credit management
Apply credit risk factors and knowledge of environmental factors to credit relationship and compare to business objectives and strategies

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Use effective performance management techniques to achieve effective credit management

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Deal with debtors in difficult circumstances

  1. Implement organisational policy and procedures to identify early warning signs of debtor difficulty and address debtors experiencing difficult circumstances
  2. Determine and apply relevant legislative requirements and industry regulations to specific debtor situations
  3. Respond considerately, using effective communication skills, to particular debtor circumstances in accordance with organisational policy and procedures
Implement organisational policy and procedures to identify early warning signs of debtor difficulty and address debtors experiencing difficult circumstances

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Determine and apply relevant legislative requirements and industry regulations to specific debtor situations

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Respond considerately, using effective communication skills, to particular debtor circumstances in accordance with organisational policy and procedures

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Terminate credit relationship

  1. Inform clients, where relevant, that the credit relationship is terminated
  2. Maintain all records accurately in accordance with legislative requirements
  3. Destroy or store relevant documentation in accordance with organisational policy and procedures, and legislative requirements
Inform clients, where relevant, that the credit relationship is terminated

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Maintain all records accurately in accordance with legislative requirements

Completed
Date:

Teacher:		 Evidence:

 

 

 

 

 

 

 

Destroy or store relevant documentation in accordance with organisational policy and procedures, 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. Manage interaction between credit relationship and business objectives and strategies

1.1 Apply credit risk factors and knowledge of environmental factors to credit relationship and compare to business objectives and strategies

1.2 Use effective performance management techniques to achieve effective credit management

2. Deal with debtors in difficult circumstances

2.1 Implement organisational policy and procedures to identify early warning signs of debtor difficulty and address debtors experiencing difficult circumstances

2.2 Determine and apply relevant legislative requirements and industry regulations to specific debtor situations

2.3 Respond considerately, using effective communication skills, to particular debtor circumstances in accordance with organisational policy and procedures

3. Terminate credit relationship

3.1 Inform clients, where relevant, that the credit relationship is terminated

3.2 Maintain all records accurately in accordance with legislative requirements

3.3 Destroy or store relevant documentation in accordance with organisational policy and procedures, 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. Manage interaction between credit relationship and business objectives and strategies

1.1 Apply credit risk factors and knowledge of environmental factors to credit relationship and compare to business objectives and strategies

1.2 Use effective performance management techniques to achieve effective credit management

2. Deal with debtors in difficult circumstances

2.1 Implement organisational policy and procedures to identify early warning signs of debtor difficulty and address debtors experiencing difficult circumstances

2.2 Determine and apply relevant legislative requirements and industry regulations to specific debtor situations

2.3 Respond considerately, using effective communication skills, to particular debtor circumstances in accordance with organisational policy and procedures

3. Terminate credit relationship

3.1 Inform clients, where relevant, that the credit relationship is terminated

3.2 Maintain all records accurately in accordance with legislative requirements

3.3 Destroy or store relevant documentation in accordance with organisational policy and procedures, and legislative requirements

Evidence of the ability to:

follow organisational policy and procedures and comply with relevant legislation when dealing with clients in difficult circumstances and, where relevant, terminating the credit relationship

assess client accounts for credit risk by considering credit risk and environmental factors

respond considerately to clients when managing debt matters, taking difficult circumstances into consideration

maintain all records and dispose of appropriately as required.

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:

describe credit risk and environmental factors

outline effective performance management techniques

explain current organisational policy and procedures for credit risk identification and risk management

explain the interrelationship between debt recovery and business strategy

describe relevant legislative requirements, industry regulations and code of conduct in relation to credit management.