Unit of competency Outline

Date retreived
22/07/2026 7:05 PM AWST

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Manage financial resources

Manage financial resources

Unit of competency
National Code
AHCAGB608
State Code
OBK43
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
21/10/2019
View on TGA
State Implementation and Classification
Approved Date
28/01/2020
Field of Education
080301 - Business Management
Original Release Date
28/01/2020
Nominal Hours
50
Description
This unit of competency describes the skills and knowledge required to manage the financial resources of the business, including reviewing the mix of liabilities, monitoring equity and return on equity.This unit applies to individuals who take personal responsibility and exercise autonomy in undertaking complex work. They must analyse information and exercise judgement to complete a range of advanced skilled activities. They work in contexts that are subject to change and adapt a range of fundamental principles accordingly.No licensing, legislative or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Assess capital change to finances
  • 1.1 Determine working capital and requirement for capital development
  • 1.2 Determine return on capital investment
2. Assess appropriate equity levels for the business
  • 2.1 Assess the financial risks associated with the business
  • 2.2 Identify personal and business risk preferences
  • 2.3 Analyse equity levels in comparable enterprises using benchmark data
3. Establish and maintain appropriate financing arrangements for the business
  • 3.1 Determine capacity to service debt and meet liabilities
  • 3.2 Identify sources of funds and compare and evaluate terms and conditions
  • 3.3 Conduct negotiations to ensure the establishment of the most favourable terms and conditions
  • 3.4 Source loan funds and check agreements
  • 3.5 Monitor costs of finance to keep them within defined budget limits
  • 3.6 Manage relationships with finance providers
  • 3.7 Monitor the economic environment and assess implications for the business
4. Monitor and review the mix of liabilities
  • 4.1 Conduct regular reviews of the mix of liabilities and the costs and determine the benefits associated with reconfiguring loans
  • 4.2 Review and renegotiate loans as appropriate
5. Monitor equity, return on equity
  • 5.1 Review valuations on assets and monitor the effect on equity
  • 5.2 Calculate returns on assets and returns on equity and use to assist business performance
No information
No information
Replaces
State Code National Code Title Type
BAQ80 AHCAGB605 Manage business capital Unit of competency