This course introduces the concept of Credit Behaviour During Crop Failure Events within the Tractor & Farm Equipment Credit framework. It focuses on understanding how crop failure incidents influence borrower repayment behaviour, financial stability, and overall credit risk, especially in agriculture-dependent income profiles.
Learners will explore key assessment dimensions such as demographic characteristics, succession-related factors, segment-specific vulnerabilities, and relationship-driven risks that affect repayment outcomes during stress events, with an emphasis on independent validation and well-documented rationale. The course highlights how crop failures—caused by climate variability, pest attacks, or market disruptions—can lead to cash flow shocks, delayed repayments, restructuring needs, or increased default probability. It also distinguishes credit behaviour during crop failure events from broader portfolio diversification strategies, emphasizing its role in assessing borrower-level stress response rather than portfolio-level risk allocation.
By the end of the course, participants will understand how to evaluate and anticipate borrower behaviour under crop failure scenarios 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 stress indicators, documentation standards, exception handling, and escalation protocols aligned with credit committee priorities.