This course introduces the concept of Dealer Incentive Structures & Risk Implications within the Tractor & Farm Equipment Credit framework. It focuses on understanding how dealer incentives, commissions, and manufacturer-driven schemes can influence borrower behavior, credit quality, and overall risk in the lending process.
Learners will explore key assessment dimensions such as evaluation of dealer incentive structures, alignment (or misalignment) of incentives between dealers, manufacturers, and borrowers, and the potential for adverse selection or mis-selling risks, with an emphasis on independent validation and well-documented rationale. The course also distinguishes dealer incentive risk evaluation from broader portfolio diversification strategies, highlighting its specific role in identifying ecosystem-driven risks at the exposure level rather than managing portfolio-level risk distribution.
By the end of the course, participants will understand how to assess the implications of dealer incentives 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 incentive-driven risk signals, documentation standards, exception handling, and escalation protocols aligned with credit committee priorities.