Learning Objectives
By the end of this module, you will be able to:
Understand the Purpose and Role of Security Instruments
Recognise how security instruments provide a secondary source of repayment and protect the lender in a default scenario.
Understand the role of security in reducing credit risk, supporting recovery outcomes and improving LGD.
Explain how security supports the lender’s overall risk management and credit approval process.
Evaluate and Differentiate Key Security Types
Identify when and how to use key security instruments, including General Security Agreements, registered mortgages, guarantees, caveats and inter-creditor agreements.
Assess enforceability, priority ranking and collateral adequacy to determine the overall strength of the security position.
Understand how different security types affect lender recourse and recovery outcomes.
Structure and Monitor Effective Security Arrangements
Structure security packages aligned with the client’s risk profile, facility structure and loan purpose.
Conduct ongoing reviews to ensure accurate registration, legal enforceability and continued adequacy of collateral coverage.
Identify situations where additional security, updated valuations or amended documentation may be required.
Apply Enforcement and Recovery Strategies
Evaluate recovery options such as asset realisation, equity injections, business sale or restructure.
Apply enforcement strategies to maximise recovery outcomes and minimise potential loss in default scenarios.
Assess practical recovery risks, including timing, market conditions, asset quality and competing creditor claims.
Integrate Security Instruments with Credit Policy and Risk Frameworks
Ensure security structures align with the lender’s credit policy, risk appetite and regulatory requirements.
Apply best practice in security documentation, PPSR registration and coordination with other creditors.
Use security analysis to support clear, responsible and well-supported credit recommendations.
