This course introduces the concept of Manufacturer & Dealer Risk Evaluation within the Tractor & Farm Equipment Credit framework. It focuses on understanding the credit, operational, and dependency risks arising from relationships with tractor manufacturers and dealers, and how these ecosystem participants influence credit quality and portfolio performance.
Learners will explore key assessment dimensions such as evaluation of manufacturer strength, dealer stability, dependency risks, and operational linkages, with an emphasis on independent validation and well-documented rationale. The course highlights how concentration on specific manufacturers or dealers, supply chain dependencies, and incentive structures can impact borrower behavior and repayment outcomes. It also distinguishes manufacturer and dealer risk evaluation from broader portfolio diversification strategies, emphasizing its role in identifying ecosystem-driven risks at the exposure level rather than managing portfolio-level allocation.
By the end of the course, participants will understand how to assess manufacturer and dealer risks in practice, particularly within Dealer, Manufacturer, and Ecosystem Risk Management. The course also emphasizes the role of the senior credit leader in setting portfolio limits, governing exception criteria, and ensuring strategic alignment across the Tractor & Farm Equipment Credit function, including oversight of ecosystem risk indicators, documentation standards, exception handling, and escalation protocols aligned with credit committee priorities.