This course covers Subsidy Dependency Risk, which focuses on the risk arising from excessive reliance on subsidies to support borrower viability, repayment capacity, or project economics. It evaluates key dimensions such as affordability, performance outcomes, subsidies, and insurance arrangements affecting viability and outcomes, each requiring independent validation and documented rationale before any credit action is finalized.
It is distinct from portfolio diversification strategy, as it specifically addresses exposure-level vulnerability due to subsidy dependence, rather than broader portfolio risk distribution. Within Schemes, Subsidy & Insurance Risk, the credit manager validates team-level analysis, approves case recommendations, and manages segment-level exposure, shaping escalation decisions and credit committee priorities.