This course introduces the concept of Recovery Probability Assessment Post-Liquidation within the Loan Against Shares (LAS) Credit framework. It focuses on assessing the likelihood of recovering residual dues remaining after the liquidation of pledged securities, including outstanding balances, accrued charges, penalties, and unrecovered exposure components within secured lending operations.
Learners will explore key assessment dimensions such as loss recognition practices, post-liquidation recovery initiation, management of credit against listed securities, and margin maintenance governance, with an emphasis on independent validation and well-documented rationale. The course highlights how recovery probability assessments influence provisioning accuracy, recovery prioritisation, exposure containment, operational efficiency, governance effectiveness, and overall portfolio resilience. It also examines how weak or inaccurate recovery assessments can result in understated credit losses, ineffective recovery strategies, governance weaknesses, operational inefficiencies, delayed corrective actions, financial reporting inconsistencies, and elevated recovery management risk within LAS portfolios.
The course distinguishes recovery probability assessment post-liquidation from the broader credit approval process, emphasizing its role in exposure-level recovery evaluation, structured post-liquidation governance, collateral enforcement follow-through, and corrective action planning, whereas the credit approval process focuses more broadly on borrower assessment, repayment capacity evaluation, underwriting alignment, and lending decision authority. Each requires distinct evidence standards, ownership, and approval authority.
By the end of the course, participants will understand how to design, assess, and implement post-liquidation recovery probability frameworks in practice, particularly within Post-Liquidation Exposure and Recovery functions. The course also emphasizes the role of the credit manager in validating team-level analysis, approving case recommendations, and managing segment-level exposure within Loan Against Shares (LAS) Credit, ensuring disciplined collateral governance, sustainable exposure management, and alignment with credit committee priorities.