This course introduces the concept of Single Scrip Exposure Limits within the Loan Against Shares (LAS) Credit framework. It focuses on defining limits on exposure to any single listed security in order to control concentration risk, maintain collateral diversification, and strengthen portfolio resilience within secured lending operations.
Learners will explore key assessment dimensions such as monitoring and controlling exposure through loan-to-value (LTV) ratios, margin management practices, and concentration limit governance, with an emphasis on independent validation and well-documented rationale. The course highlights how single scrip exposure limits influence collateral diversification, exposure containment, liquidation flexibility, market risk management, margin stability, and overall portfolio resilience. It also examines how weak or poorly enforced exposure limits can result in excessive dependence on individual securities, heightened concentration vulnerabilities, amplified volatility impact, governance weaknesses, operational disruption, and elevated loss severity within LAS portfolios.
The course distinguishes single scrip exposure limits from broader portfolio diversification strategies, emphasizing their role in exposure-level concentration control, structured breach identification, collateral governance, and corrective action escalation, whereas diversification strategies focus more broadly on balancing aggregate exposures across sectors, asset classes, borrower groups, and wider market risk categories. Each requires distinct evidence standards, ownership, and approval authority.
By the end of the course, participants will understand how to design, assess, and implement single scrip exposure limit frameworks in practice, particularly within LTV, Margin, and Exposure Control functions. The course also emphasizes the role of the credit analyst in executing assessments, completing documentation, and flagging exceptions for manager review within Loan Against Shares (LAS) Credit files, ensuring disciplined collateral governance, sustainable exposure management, and alignment with credit committee priorities.