Elements and Performance Criteria

RANGE STATEMENT
The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.
Credit risk factors may include:
creditworthiness of customer
customer's assets
customer's credit history
importance of customer to the business
level of credit provided
level of credit requested
size of business providing credit.
Environmental factors may include:
degree of competition
economic conditions
legislative factors
market conditions
market share
nature of industry
seasonal factors
trends in employment.
Effective performance management techniques can include:
calculation of Days Sales Outstanding (DSO)
employee turnover
level of write-offs
number of active accounts managed per employee
number of credit notes raised
number of invoices issued per employee in the credit function
percentage of prior months sales collected
percentage of trial balance aging
time taken to contact overdue account.
Difficult circumstances could include:
personal hardship
corporate recovery programs
mergers and takeovers
natural disasters such as:
fire
flood
drought
turnaround management schemes.
Organisational policies and procedures covers:
situations relating to difficult customer circumstances and distinguish between counselling in relation to company requirements and factors beyond the control of the business.
Legislative requirements include a sound knowledge of relevant legislation such as:
Consumer Credit Protection Acts
Corporations Act
Personal Property Securities Act
Privacy Act
taxation law implications.
Document destruction and storage must be:
in accordance with relevant legislation and organisational policy and procedures.

EVIDENCE GUIDE
The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit
Evidence of the ability to:
interpret and comply with relevant legislation
accurately check customer accounts for credit risk
apply relevant organisational policies and procedures
exhibit appropriate empathy to customers when managing debt matters
analyse company data comprehensively and make sound judgements.

Context of and specific resources for assessment
Assessment must ensure:
competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
access to and the use of a range of common office equipment, technology, software and consumables
access to organisational policies and procedures for credit risk factoring and invoice discounting and relevant legislation.

Method of assessment
A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:
evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency
verbal or written questioning on underpinning knowledge and skills
setting and reviewing business simulations or scenarios
accessing and validating third party reports.

Guidance information for assessment