Diploma in Credit Management (DCM)

About Diploma in Credit Management (DCM)

Credit Management has established itself worldwide as a vital management function with a major contribution to make the economic well being of organizations of all kinds. Efficient credit management with its critical impact on cash flow can make all the differences between survival and insolvency in the public/private sectors. Therefore, there can be very little doubt that all Credit/Debt Managers need the knowledge and expertise to handle this crucial and sensitive area of the economy

Any business which sells goods or provides services ‘on credit’ - that is, without receiving payment at once - is exposed to the very real risk that customers or clients might ‘default’, that is, not settle their debts when they fall due for payment.  Such ‘bad debts’ can seriously affect the operations and profitability of a business, and so must be kept to the bare minimum.  

It is the important task of the credit manager and/or accounts managers and personnel, or the owner or manager of a small business, or an appointed official or executive of larger businesses - to formulate a ‘credit policy’ to control and manage the credit extended to its customers or clients.  

The credit-control process needs to be understood and followed, with adequate checks made on the “creditworthiness” of new and existing customers, and ‘credit limits’ (how much credit is allowed and for how long) must be set.  

A major responsibility of a credit manager is to ensure debts are collected on time, that any signs a customer might default are acted upon early, and that any overdue debts are “chased” to avoid losses.  

This diploma in credit management (DCM) program covers all those topics and many more of great value to all businesses.

• The DCM Examination is held twice yearly in May/June and November/December. The examination is divided into three levels, with each level comprising four papers.
• A candidate is required to pass a lower level before progressing to a higher level.
• The examination is rigorous and standards are high and therefore a candidate is advised to devote approximately the equivalent of six months of full-time study for each level of the examination. Ideally, a student should be able to complete the DCM examination in a period not exceeding one and a half years.
• Students taking the DCM examination are advised to look for ways and means of acquiring practical experience so that they can match progress in examination with competence in the performance of duties in the work environment. 

Entry requirements for Diploma in Credit Management (DCM)

A person seeking to be registered as a student for the DCM examination must show evidence of being a holder of one of the following qualifications:

• Kenya Certificate of Secondary Education (KCSE) examination with an aggregate average of at least grade C minus (C-).
• A kasneb technician certificate, CAMS or diploma certificate.
• Such other certificates or diplomas as may be approved by kasneb.

Persons intending to take the November/December examinations must register as students not later than 15 September while those intending to take the May/June examinations must register as students not later than 15 March.

kasneb reserves the right to refuse to register any applicant who in its opinion is not fit and proper to be registered as a student.

Similarly, kasneb reserves the right to cancel the registration of any student who in its opinion is not fit and proper to be a student of kasneb.

Exemptions
Holders of CAMS will be exempted in DCM Level I. In addition, graduates of the other diploma qualifications of kasneb wishing to pursue DCM will be exempted in the common papers as applicable.
Retention of Credits
There are three levels in the DCM Examination. Each level has four papers. Papers taken and passed in a level shall be retained as credits for the candidate provided that the candidate fulfils the requirements set out below:

• The candidate must enter and attempt all the papers in a level unless the candidate is exempted from some papers in the level or has earned credits in previous attempts.
• A candidate who is awarded one or more credits in a level must enter and pass the failed paper(s) in the level within two and a half (2 1/2) years or five (5) consecutive sittings failure to which the candidate will be required to resit all the papers in the level.

Progression Rule
A candidate must attempt and pass the DCM Level I examination before proceeding to the DCM Level II examination. Similarly, a candidate must attempt and pass the DCM Level II examination before proceeding to the DCM Level III examination.
Duration of Registration as a Student of kasneb
A registered student of the DCM Examination will be required to complete the examination within a maximum period of six years provided that the candidate shall complete:

• The DCM Level I examination by the end of the second year since registration.
• The DCM Level II examination by the end of the fourth year since registration.
• The DCM Level III examination by the end of the sixth year since registration.

kasneb reserves the right to cancel the registration of a student who fails to complete the DCM Examination within the stipulated time.

A student whose registration is cancelled under the rules in this paragraph may not be eligible for re-registration.
However, kasneb reserves the right to vary or amend the regulations. 

Objectives of Diploma in Credit Management (DCM)

This diploma in credit management program examined by kasneb, teaches about credit, credit management, dealing with customer accounts, and debt control.

It is for persons who wish to qualify and work as middle-level credit managers, credit assessors and other related areas in both formal and informal sectors.

Aim of Diploma in Credit Management
To equip the candidate with the competencies required to manage credit functions in a range of business environments and to provide the candidate with a basis for further progression in the credit profession.

Aims of DCM Level I Examination
To equip the candidate with knowledge and skills to, among other responsibilities:

• Undertake basic credit management operations.
• Comply with the regulations governing business operations.
• Communicate effectively in the workplace.
• Provide a basis for further progression to DCM Level II.

Aims of DCM Level II Examination
To equip the candidate with knowledge and skills to, among other responsibilities:

• Undertake credit assessments on individuals and businesses.
• Comply with the regulations governing credit practice.
• Apply the principles of management in credit management.
• Provide a basis for further progression to DCM Level II.

Aims of DCM Level III Examination
To equip the candidate with knowledge and skills to, among other responsibilities:

• Prepare financial statements for non-complex entities.
• Apply the principles of public finance and taxation in practice.
• Apply the principles of credit management in practical scenarios.
• Provide a basis for entry into the professional examinations.

Diploma in Credit Management (DCM) - Programme

SUMMARY OF THE DIPLOMA IN CREDIT MANAGEMENT (DCM) EXAMINATION SYLLABUS
LEVEL I

• Paper No. 1 Fundamentals of Credit Management
• Paper No. 2 Principles of Business Law
• Paper No. 3 Entrepreneurship and Communication
• Paper No. 4 Information Communication Technology

LEVEL II

• Paper No. 5 Credit Management
• Paper No. 6 Principles of Management
• Paper No. 7 Business Mathematics and Statistics
• Paper No. 8 Law Governing Credit Practice

LEVEL III

• Paper No. 9 Marketing and Customer Relations
• Paper No. 10 Foundations of Accounting
• Paper No.11 Principles of Public Finance and Taxation
• Paper No.12 Practice of Credit Management