This course introduces the concept of the Short-Tenor Exposure Framework within the Working Capital – Consumer Credit framework. It focuses on defining acceptable structures, controls, and risk parameters for short-tenor credit exposures designed to support temporary and cyclical working capital requirements.
Learners will explore key assessment dimensions such as establishing appropriate limit design, defining borrower drawing rights, monitoring utilisation expectations, and applying renewal philosophies suited to short-duration exposures, with an emphasis on independent validation and well-documented rationale. The course highlights how short-tenor facilities require disciplined monitoring due to their rapid utilisation cycles, higher rollover frequency, and sensitivity to liquidity disruptions. It also examines how poorly managed short-tenor exposures can lead to repeated renewals, hidden stress migration, and increased concentration risk.
The course distinguishes the short-tenor exposure framework from broader portfolio diversification strategies, emphasizing its role in exposure-level structuring, utilisation control, and breach response mechanisms, whereas diversification strategies focus on balancing portfolio concentration across segments, industries, or borrower categories. Each requires distinct evidence standards, ownership, and approval authority.
By the end of the course, participants will understand how to design, assess, and monitor short-tenor exposure structures in practice, particularly within Limit Design, Utilisation, and Renewal management. The course also emphasizes the role of the credit manager in validating team-level analysis, approving case recommendations, and managing segment-level exposure within Working Capital – Consumer Credit, ensuring disciplined short-tenor exposure management, effective escalation, and alignment with credit committee priorities.