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 reflect the true net value of distressed exposures.
Learners will explore key assessment dimensions such as recovery-related costs, time horizon, and their impact on overall recovery outcomes, 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 potential 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 documentation standards, exception handling, and escalation for review within the credit approval process.