Unit Standard SAQA 13428- Manage Loan Portfolios

Unit Standard SAQA 13428- Manage loan portfolios

LEARNER ASSESSMENT PACK

Manage loan portfolios

(13428)

NAME:

ORGANISATION:

COURSE NO:

OR

RPL:

INDEX

Page No

Instructions to Learner1

Assignment: Assessment Questionnaire4

Declaration of Authenticity12

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Version 2 – October 2005

Unit Standard SAQA 13426- Develop and implement credit policies, procedures and control systems

INSTRUCTIONS TO LEARNER

Purpose of the Assessment:

/ The purpose of assessment against this unit standard is to award credits on the NQF to learners who are able to:

• Determine the steps of portfolio management
• Analyse the loan portfolio
• Determine and implement the appropriate responses to the "portfolios at risk".

Context of the Unit Standard

/

This unit standard is registered on the National Qualifications Framework as follows:

Field: / Business, Commerce and Management
Studies / Business, Commerce and Management
Studies / Business, Commerce and Management
Studies
Sub-field: / Finance, Economics and Accounting / Finance, Economics and Accounting / Generic Management
Number: / 13428 / 13426 / 14667
Level: / Level 4 / Level 4 / Level 4
Credits: / 6 / 10 / 10

Learning Assumptions:

/ Open

Assessment Methods:

/ The following assessment methods will be used for this assessment:

• Questioning - Q
• Observation - O

Assessment Process:

/ Step 1 – Planning for the Assessment
-You will need to complete an assessment plan together with your assessor/line supervisor
-Your assessor will prepare you for your assessment and complete the assessment preparation plan with you
-Ensure you are familiar with what is expected of you for this assessment and the unit standard

Assessment Process (Cont):

/ Step 2 – Completing the Assessment
-This assessment will be completed by means of a Questionnaire detailed on page 4, Observation on page on 10. Hand in the questionnaire fully completed as per the instructions by the date agreed on the assessment plan
-Your assessor may ask you additional questions
-Your assessor will record the evidence that you have submitted onto the assessment guide
-Based on this evidence, the assessor will make a judgement of 'Competent' or 'Not Yet Competent' or 'Not Assessed' for each assessment criteria and overall for the total unit standard
Step 3 – After the Assessment
-If 'Not Assessed' you and the assessor will agree on the criteria not assessed and arrange an additional assessment date
-If 'Not Yet Competent' you and the assessor will identify why this judgement has been made and the action/s necessary. A re-assessment date should also be agreed upon
-All decisions will be recorded on the assessment guide, which all parties should sign
-You will only be declared 'Competent' if you have provided sufficient and valid evidence against all the assessment criteria and specific outcomes of this unit standard
-After declaration of competence, your assessment is subject to the internal moderation process
-Once this is complete, your results will be entered onto SAQA's NLRD – National Learner Record Database

Special Conditions:

/ -The declaration of authenticity on page 12 must be signed by your manager, your assessor and yourself to certify that the evidence is authentic and that this has been applied in your workplace
-Feedback on your assessment will be given to you by your Line Manager/Assessor

Resources:

/ The following additional/supporting resources will help you when preparing for your assessment:

Resource

/ Reference / Available From
Access to relevant computer system(s)
Access to staff training guides and other process guidelines
Access to policies and procedures
Access to the Code of the Banking Practice

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Version 2 – October 2005

Unit Standard SAQA 13426- Develop and implement credit policies, procedures and control systems

Section 1: QUESTIONING

Introduction:

The following questions comprise the Knowledge Assessment for Unit Standard 13428. They represent the theoretical component of the evaluation and they test your understanding of the different work activities. You must answer all the questions in full and write in the spaces provided. The mark allocation is a guide to the number of factors being evaluated per question.

As the learner you must:

• Write all your answers in the space below the questions.
• Ensure that you have answered all the questions.
• Ensure that you have answered the questions in full.

QUESTIONNAIRE

SPECIFIC OUTCOME1: Determine the steps of portfolio management.
SPECIFIC OUTCOME 2: Analyse the loan portfolio.
SPECIFIC OUTCOME 3: Determine and implement the appropriate response to the "portfolios at risk".
CCFO ORGANISING; CCFO COLLECTING; CCFO DEMONSTRATING.information: Formulate and motivate the main elements of a credit policy.

Question 1:What is a portfolio of loans?

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(1)

Question 2:Why is it important to measure the micro finance institution’s portfolio performance in terms of company practices and requirements?

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(1)

QUESTIONNAIRE (Continued)

Question 3:It is the steps you take and the planning done beforehand that will minimise the risk to an acceptable level. Explain the 7 steps that the organisation needs to take.

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(7)

Question 4:How is risk lessoned in the micro finance industry? Provide 5 examples.

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(5)

QUESTIONNAIRE (Continued)

Question 5:Briefly list and describe the 9 typical steps you would take to manage a loan portfolio, according to best practice.

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(9)

Question 6:Explain what is meant by account behaviour? When you analyse the customer’s repayment history list 5 examples of what you will be determining in the process

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______(5)

Question 7:Is technology useful to portfolio management and loan analysis?

Why do you say that?

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(1)

QUESTIONNAIRE (Continued)

SPECIFIC OUTCOME1: Determine the steps of portfolio management.(Continued)

SPECIFIC OUTCOME 3: Determine and implement the appropriate response to the "portfolios at risk".

Question 8:What is the risk you face when managing a credit portfolio?

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(1)

Question 9:Why is it important to conduct regular financial analysis of portfolios?

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(1)

Question 10:Name 3 different aspects of portfolio management.

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(3)

Question 11:What does ‘ financial analysis of loan portfolios’ mean?

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(1)

QUESTIONNAIRE (Continued)

Question 12:List 7 examples of the kind of reports that will be required to conduct a financial analysis of a portfolio.

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(7)

Question 13:For the “Credit decision” component of credit control, list 3 procedures that r elate to it to minimise the risk to the organisation.

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(3)

QUESTIONNAIRE (Continued)

Question 14:For the “Responsibility for portfolio management” component of credit control, what responsibilities for portfolio management have been included in your job description?

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(1)

Question 15:Explain what an age analysis report is.

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(1)

SPECIFIC OUTCOME 3: Determine and implement the appropriate response to the "portfolios at risk". (continued)

Question 16:There are a number of appropriate responses when problem loans have been identified to ensure the lowest acceptable “loan at risk” rate, based on industry, company and regulatory requirements. List 6.

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(6)

TOTAL FOR SECTION 1(For Assessor Use Only) / 53

Section 2: OBSERVATION

Introduction

The Observation Assessment represents the physical gathering of information in the workplace. In this section your assessor will observe and evaluate you completing actual work tasks. These tasks correspond with the Unit Standard requirements and should be performed at your work station or within your familiar working environment. The assessor will complete a checklist for each action and allocate a tick or cross in the space provided indicating whether you have successfully completed the task/s or not. You will be assessed only once per assessment criterion.

(For Assessor Use Only)

SECTION 2: OBSERVATION ASSESSMENT

QUESTION NO / DID THE LEARNER / √ / X
SPECIFIC OUTCOME 1: Determine the steps of portfolio management.
SPECIFIC OUTCOME 2: Analyse the loan portfolio.
SPECIFIC OUTCOME 3: Determine and implement the appropriate response to the "portfolios at risk".
CCFO COMMUNICATING.
1. / Examine the customer loan age analysis report in the learning material and answer the following questions:

1. How many customers have loans outstanding for 210 days or more?

1. What total percentage of customers has loans outstanding for 30, 60 and 90 days?

1. What is the ratio of the value of loans outstanding for 30 days to those outstanding for 90 days?

1. How many loans taken out on 1 December 2003 are more than 150 days overdue? Also calculate this as a percentage.

1. What is the ratio of loans outstanding that exceed R7 000 to the total value of the loans outstanding?

1. Calculate the value of the loans outstanding for 240 days and more.

1. R247 was disbursed (paid to a customer) on 24 May 2004. It is now exactly 90 days overdue. What date is that?

1. Give details of the data relating to customer P, X and Y.

2. / Communicate effectively using visual, mathematical and language skills both verbally and in writing when communicating with internal and external customers?
QUESTION NO / DID THE LEARNER / √ / X
3. / Practice responsible and effective self-organisation and management when dealing with internal and external customers?
4. / Collect, analyse, organise and critically evaluate information?
5. / Identify and solve problems using creative and critical thinking?
The learner must achieve a tick in ALL of the questions in order to be rated at COMPETENT / C / NYC
RESULT FOR SECTION 2 (For Assessor Use Only)
ASSESSOR COMMENTS:
ASSESSOR SIGNATURE: DATE:

DECLARATION OF AUTHENTICITY

We the undersigned hereby declare that ______has completed all of the specified requirements for assessment against this unit standard.

SIGNED:______

LEARNER:______

DESIGNATION:______

DATE:______

SIGNED:______

LINE SUPERVISOR:______

DESIGNATION:______

DATE:______

SIGNED:______

ASSESSOR:______

DESIGNATION:______

DATE:______

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Version 2 – October 2005