This course covers Credit Cost Drivers, which involves identifying the key factors that influence credit costs—such as defaults, recoveries, and operational inefficiencies—within the Consumer LAP Credit workflow, particularly for accounts requiring structured assessment, clearly defined boundaries, and independent review. It evaluates key dimensions such as drivers of credit costs, default patterns, recovery effectiveness, and operational inefficiencies, with each representing a distinct assessment dimension that requires independent validation and documented rationale before any credit action is finalized.
It is distinct from portfolio diversification strategy, as it focuses on the structured identification and analysis of factors that directly impact credit cost and portfolio performance, rather than broader portfolio-level strategies that address overall exposure distribution. Within Portfolio Analytics, Stress & Capital Optimisation, the credit manager validates team-level analysis, approves case recommendations, and manages segment-level exposure within Consumer LAP Credit, shaping escalation scope and credit committee priorities.