Unit of competency Outline

Date retreived
23/07/2026 10:56 PM AWST

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Identify and manage credit risk

Identify and manage credit risk

Unit of competency
National Code
FNSCRD514
State Code
OEC83
TGA Status
Current
DTWD Status
Approved
Current Release Number
1.00
Current Release Date
15/06/2022
View on TGA
State Implementation and Classification
Approved Date
07/12/2022
Field of Education
081101 - Banking And Finance
Original Release Date
07/12/2022
Nominal Hours
35
Description
This unit describes the skills and knowledge required to identify and apply credit risk factors to manage credit relationships and communicate with debtors. This includes managing credit relationships with debtors in difficult circumstances and terminating credit relationships where required.The unit applies to individuals in positions of responsibility who use strategic planning and other specialist techniques to perform their work and effectively manage internal and external relationships.Work functions in the occupational areas where this unit may be used are subject to regulatory requirements. Users are advised to check with the relevant state and territory regulatory authorities to confirm those requirements.
Notes
Elements and Performance Criteria
1. Analyse 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 Determine credit relationship requirements
2. Identify and implement response to debtors in difficult circumstances
  • 2.1 Identify early warning signs of debtor difficulty according to organisational policies and procedures
  • 2.2 Establish communication with debtors experiencing difficult circumstances and determine their financial situation according to organisational policies and procedures
  • 2.3 Determine required response and address debtor situation according to organisational policies and procedures, and legislative and regulatory requirements
3. Terminate credit relationship
  • 3.1 Inform clients of termination of credit relationship as required
  • 3.2 Maintain all records accurately and according to organisational policies and procedures, and legislative and regulatory requirements
  • 3.3 Delete, destroy or store required documentation according to organisational policies and procedures, and legislative and regulatory requirements
No information
No information
Replaces
State Code National Code Title Type
AUQ72 FNSCRD504 Manage the credit relationship Unit of competency
State Code National Code Title Type
BHU0 FNS51522 Diploma of Credit Management Qualification
BHU8 FNS51822 Diploma of Financial Services Qualification