This course introduces the concept of Deviation & Indemnity Risk within the Commercial LAP (Loan Against Property) Credit framework. It focuses on assessing risks arising from deviations in standard legal or policy requirements and the reliance on indemnities to mitigate such gaps.
Learners will explore key assessment dimensions such as identification of deviations in property title or documentation, validation of ownership, evaluation of legal enforceability, and the adequacy of indemnity structures, with an emphasis on independent validation and well-documented rationale. The course also distinguishes deviation and indemnity risk from broader operational procedure design, highlighting its specific role in managing exceptions at the individual exposure level rather than defining standard processes.
By the end of the course, participants will understand how to evaluate deviation and indemnity risks in practice, particularly within Property Title and Legal Due Diligence, including documentation standards, exception justification, risk mitigation measures, and escalation protocols aligned with credit manager review and credit committee oversight.