This course covers Loss Given Default (LGD) Assumption Design, which involves designing LGD assumptions that reflect recovery behaviour, collateral realization potential, recovery timelines, and cost considerations within Consumer LAP Credit workflows. It focuses on establishing structured loss estimation frameworks that assess how much exposure may remain unrecovered after default, while aligning collateral-backed lending practices with portfolio risk management and capital protection objectives. The course evaluates key dimensions such as recovery behaviour assessment, collateral evaluation, cost consideration analysis, and policy interpretation, with each requiring independent validation and documented rationale before any credit action is finalized. It is distinct from broader portfolio diversification strategies, as it focuses on exposure-level recovery estimation, collateral-driven loss assessment, and secured lending loss severity governance frameworks, rather than enterprise-wide diversification or strategic portfolio balancing approaches. Within LTV, Exposure & Concentration Risk Design, the credit manager validates team-level analysis, approves case recommendations, and manages segment-level exposure within Consumer LAP Credit, shaping escalation scope and credit committee priorities.