NBFC Part -2

SIA applicable on Sales and Marketing Function in NBFC's ?

• SIA 240 and SIA 340

• SIA 220 and SIA 340

• SIA 240 and SIA 320

• SIA 220 and SIA 320

Laws applicable on NBFC's ?

• Companies Act, 2013

• Prevention of Money Laundering Act (PMLA), 2002

• Information Technology Act, 2000 (IT Act)

• All of the above

Minimum Retention Ratio that originators retain on portion of the securitized assets ?

• 5

• 10

• 15

• 20

Which of the following is an example of regulatory compliance risk for NBFCs?

• Liquidity mismatch risk

• Asset price risk

• Currency mismatch risk

• Capital adequacy risk

What is a key difference between Enterprise Risk Management (ERM) and Operational Risk Management (ORM)?

• ERM focuses only on financial risks, while ORM addresses all risks.

• ERM is proactive, while ORM is protective.

• ORM encompasses all organizational risks, while ERM focuses on operational risks.

• ERM requires specialized skills, while ORM requires a broad understanding of risk.

What is one recommended strategy to mitigate market liquidity risk for NBFCs?

• Diversify loan portfolios

• Hedge currency risks

•  Maintain an adequate liquidity buffer

• Conduct stress testing

Which of the following is NOT a type of credit risk faced by NBFCs?

• Credit Underwriting Risk

• Currency Exchange Rate Risk

• Default Risk

• Borrower Concentration Risk

What is a major cause of funding liquidity risk for NBFCs?

• High default rates by borrowers

• Difficulty in obtaining funds from various sources

• Misalignment between assets and liabilities

• Regulatory changes in capital adequacy

Standard on Internal audit (SIA) 530 is: -

• Third party service provider

• Enterprise risk management

• Compliance with laws and regulations

• Using the work of an expert

DRP stands for: -

• Debt recovery plan

• Disaster recovery plan

• Diminishing risk plan

• Decreasing real process