This course explains Subsidy Dependency Risk and how the risk arising from reliance on subsidies for viability and repayment capacity is identified, assessed, and governed within Agri & Rural Commercial Credit. It covers the key dimensions of affordability, performance outcomes, subsidies, and insurance arrangements affecting viability and outcomes, emphasizing the need for structured assessment, clear boundary definition, and independent validation before credit decisions are finalized. The course also distinguishes Subsidy Dependency Risk from broader portfolio diversification strategies, and highlights its role within Schemes, Subsidy & Insurance Risk, including limit setting, exception handling, and escalation to credit committees.