This course explains Distress Sale Value Sensitivity and its role in assessing how changes in key variables may affect collateral value and credit recoverability in Commercial LAP lending. It examines stress scenarios, base vs. adverse assumptions, and the impact on financial coverage metrics to identify the threshold where credit viability may be compromised. The module also highlights how this assessment informs collateral adequacy decisions, influencing approved LTV levels, sanction amounts, and enforcement readiness.