This course introduces the concept of Recovery Cost Loading within the Commercial Vehicle Retail Credit framework. It focuses on incorporating legal, operational, and resolution-related costs into recovery estimates, ensuring that credit decisions are based on realistic net recovery outcomes.
Learners will explore key assessment dimensions such as recovery-related costs and time horizon, along with borrower viability and asset valuation, with an emphasis on independent validation and well-documented rationale. The course also distinguishes recovery cost loading from broader credit management processes, highlighting its specific role in refining exposure-level assessments and identifying gaps in recovery expectations.
By the end of the course, participants will understand how to apply recovery cost loading in practice, particularly within Pricing, Haircut, and Risk Compensation, including validation of team-level analysis, approval of case recommendations, management of segment-level exposure, and escalation to the credit committee where required.