This course introduces the concept of Dealer–Borrower Collusion Risk within the Tractor & Farm Equipment Credit framework. It focuses on understanding the risks arising from potential collusion between dealers and borrowers, which may lead to misrepresentation of borrower credentials, inflated asset values, fictitious transactions, or diversion of loan funds.
Learners will explore key assessment dimensions such as dependencies on manufacturers and vendors, third-party involvement risks, and the effectiveness of governance and verification mechanisms, with an emphasis on independent validation and well-documented rationale. The course highlights how collusion can bypass standard credit controls, distort risk assessment, and adversely impact portfolio quality if not detected early. It also distinguishes dealer–borrower collusion risk from broader portfolio diversification strategies, emphasizing its role in identifying fraud and behavioural risks at the exposure level rather than managing portfolio-level risk allocation.
By the end of the course, participants will understand how to detect and assess collusion risks in practice, particularly within Dealer, Manufacturer, and Ecosystem Risk Management. 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 red-flag indicators, documentation standards, exception handling, and escalation protocols aligned with credit committee priorities.