This course covers Insurance Scheme Coverage Adequacy, which involves evaluating whether scheme-based insurance coverage is sufficient, appropriate, and effectively aligned with the borrower’s risk profile and exposure. It assesses key dimensions such as subsidies, insurance arrangements affecting viability and outcomes, sector risk, and collateral evaluation, each requiring independent validation and documented rationale before any credit action is finalized.
It is distinct from portfolio diversification strategy, as it focuses on coverage adequacy and risk mitigation at the individual exposure level, rather than broader portfolio balancing. Within Schemes, Subsidy & Insurance Risk, the credit manager validates team-level analysis, approves case recommendations, and manages segment-level exposure, shaping escalation decisions and credit committee priorities.