This module explains Deviation & Indemnity Risk and its role in identifying departures from established credit policies that may impact credit quality and recoverability in Commercial LAP lending. It outlines key components such as risk classification, root causes, affected credit stages, severity levels, and escalation protocols used to manage such deviations. The module also clarifies how deviation notes differ from policy exceptions and credit committee overrides, ensuring proper documentation, approval authority, and audit compliance in credit decisions.