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, inflated asset values, fictitious transactions, or diversion of funds.
Learners will explore key assessment dimensions such as dependencies across 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 also distinguishes dealer–borrower collusion risk from broader portfolio diversification strategies, highlighting its specific role in identifying fraud and misrepresentation risks at the exposure level rather than managing portfolio-level risk distribution.
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 credit manager in validating team-level analysis, approving case recommendations, and managing segment-level exposure, including oversight of red-flag indicators, documentation standards, exception handling, and escalation protocols aligned with credit committee priorities.