This course introduces the concept of Dealer Concentration Risk within the Tractor & Farm Equipment Credit framework. It focuses on understanding the risks arising from excessive dependency on a limited number of dealers, which can create vulnerabilities in sourcing, credit quality, and portfolio stability.
Learners will explore key assessment dimensions such as concentration across manufacturers and vendors, third-party dependencies, and the effectiveness of governance and verification mechanisms, with an emphasis on independent validation and well-documented rationale. The course also distinguishes dealer concentration risk from broader portfolio diversification strategies, highlighting its specific role in identifying exposure-level and channel-level concentration vulnerabilities rather than managing overall portfolio allocation.
By the end of the course, participants will understand how to assess dealer concentration risk 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 concentration thresholds, documentation standards, exception handling, and escalation protocols aligned with credit committee priorities.