This course introduces the concept of Override Behaviour Risk Assessment within the Personal Loan Credit (Salaried/Self-Employed) framework. It focuses on evaluating the risks introduced when standard underwriting decisions—such as scorecard outputs or policy rules—are overridden by manual judgment, ensuring that such overrides remain controlled, justified, and aligned with risk appetite.
Learners will explore key assessment dimensions such as ensuring explainability of override decisions, assessing alignment with risk-based outcomes, evaluating deviations in income stability assessment, and validating inconsistencies in bureau-based credit evaluation, with an emphasis on independent validation and well-documented rationale. The course highlights how excessive or poorly governed overrides can lead to policy drift, increased default risk, and inconsistent credit decisioning. It also examines patterns of override behaviour, including approval overrides, decline overrides, and policy exceptions, to identify potential control weaknesses or behavioural biases.
The course distinguishes override behaviour risk assessment from broader portfolio diversification strategies, emphasizing its role in exposure-level risk identification, monitoring override practices, and enabling structured breach response, whereas diversification focuses on distributing risk across segments. Each requires distinct evidence standards, ownership, and approval authority.
By the end of the course, participants will understand how to assess, monitor, and control override behaviour in practice, particularly within Product-Level Underwriting and Decision Architecture. The course also emphasizes the role of the senior credit leader in setting portfolio limits, governing exception criteria, and driving strategic alignment across the Personal Loan Credit function, ensuring disciplined override governance and alignment with credit committee priorities.