This course introduces the concept of Stress Testing & Scenario Analysis – Agri Portfolio within the Tractor & Farm Equipment Credit framework. It focuses on understanding structured approaches to assess how adverse scenarios—such as climate shocks, policy changes, and market disruptions—impact portfolio performance, borrower repayment capacity, and overall risk exposure.
Learners will explore key assessment dimensions such as climate and policy impact analysis, contingency planning frameworks, strategic run-down decisions, and evaluation of asset suitability under stressed conditions, with an emphasis on independent validation and well-documented rationale. The course highlights how scenario-based thinking enables proactive risk management and informed decision-making in uncertain agricultural environments. It also distinguishes stress testing and scenario analysis from the credit approval process, emphasizing its role in forward-looking risk assessment rather than individual credit sanctioning.
By the end of the course, participants will understand how to design and apply stress scenarios in practice, particularly within Stress, Scenario, and Contingency Risk Management. The course also emphasizes the role of the senior credit leader in setting portfolio limits, governing exception criteria, and ensuring strategic alignment across the Tractor & Farm Equipment Credit function, including oversight of stress assumptions, documentation standards, exception handling, and escalation protocols aligned with credit committee priorities.