List the assessment methods to be used and the context and resources required for assessment. Copy and paste the relevant sections from the evidence guide below and then re-write these in plain English.
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.
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:
organisational policy, procedures and legislation relevant to credit risk factoring and invoice discounting
common office equipment, technology and consumables
credit product information
relevant software systems and data.
Assessors must satisfy NVR/AQTF assessor requirements.