Lesson 6 of 6

Choosing a model: risk, revenue, responsibility and the rules

Every model in this course is a choice about which parts of lending a firm keeps and which it hands to others. The choice decides how the firm earns, how much of a bad year it feels, what it still answers for, and which licence it needs. Set side by side, the models differ most in who bears a rise in losses.

Published 12 October 2026