This course introduces the concept of Borrower Succession & Inheritance Risk within the Tractor & Farm Equipment Credit framework. It focuses on understanding the risks arising from borrower death, succession uncertainties, and ownership transitions, which can impact continuity of repayment, asset control, and enforceability of credit obligations.
Learners will explore key assessment dimensions such as succession planning gaps, legal and practical challenges in ownership transfer, demographic factors, and stability of borrower relationships, with an emphasis on independent validation and well-documented rationale. The course highlights how unclear inheritance structures, disputes among heirs, or lack of formal succession planning can delay repayments, complicate recovery, and increase credit risk. It also distinguishes borrower succession and inheritance risk from broader portfolio diversification strategies, emphasizing its role in assessing borrower-level continuity risk rather than portfolio-level risk distribution.
By the end of the course, participants will understand how to evaluate succession-related risks in practice, particularly within Borrower Risk Profiling and Relationship Risk. The course also emphasizes the role of the senior credit leader in setting portfolio limits, governing exception criteria, and ensuring strategic alignment across the Tractor & Farm Equipment Credit function, including oversight of succession documentation, legal clarity, exception handling, and escalation protocols aligned with credit committee priorities.