This course covers Credit Cost Drivers, which involves identifying and understanding the key factors that influence credit costs within the Consumer LAP Credit workflow, particularly for accounts requiring structured assessment, clearly defined boundaries, and independent review. It evaluates core dimensions such as defaults, recovery outcomes, and operational inefficiencies, along with broader cost drivers that impact overall portfolio performance—each representing a distinct assessment dimension requiring 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 cost drivers affecting credit performance and profitability, rather than broader portfolio-level strategies that address exposure distribution. Within Portfolio Analytics, Stress & Capital Optimisation, the senior credit leader sets portfolio limits, governs exception criteria, and drives strategic alignment across the Consumer LAP Credit function, shaping escalation scope and credit committee priorities.