GCEMP QUIZ

Which primary aim of the Global Credit Exposure Management Policy (GCEMP) is highlighted?

• To maintain different types of credit risk exposures within risk tolerance limits and maximize risk-adjusted return

• To eliminate all forms of credit risk

• To comply only with host country regulations

• To maximize loan volumes regardless of risk

The coverage of GCEMP extends to which scope of exposures?

• All kinds of credit exposures assumed by the Bank globally at both stand-alone and consolidated levels

• Only investments in government securities

• Only domestic corporate loans

• Only retail credit exposures in India

For overseas branches, which regulatory principle applies under GCEMP?

• Follow only the host country’s regulations

• Operate within the laws and regulations of the country concerned and the RBI or host country regulations, whichever are more stringent

• Follow only the Reserve Bank of India regulations

• Follow whichever regulations are less stringent

Which objective of GCEMP involves setting ex ante benchmarks and conducting ex post evaluation of risk-adjusted returns?

• Strengthening HR policies

• Expanding branch network

• Optimizing Economic Value Addition (EVA) through RAROC benchmarks and periodic comparisons

• Reducing marketing expenses

GCEMP seeks to build and maintain which type of portfolio?

• Portfolio focused solely on non-interest income

• Highly concentrated credit portfolio with maximum yield

• Well-diversified credit portfolio yielding adequate risk-adjusted return with low credit cost

• Short-term trading portfolio only

Which process areas are emphasized to strengthen credit risk management under GCEMP?

• Sales training and customer onboarding

• Risk identification, measurement, monitoring, and mitigation

• Asset-liability management only

• Information technology upgrades only

Who is responsible for overall credit risk exposure management ensuring adherence to policy and achievement of benchmark risk-adjusted returns?

• Board of Directors

• Product teams

• Marketing department

• External auditors

What is the role of the Risk Management Committee of the Board (RMCB)?

• Approve loans to individual customers

• Manage day-to-day branch operations

• Approve the Policy, set major credit risk appetite and monitoring limits, and advise the Board

• Oversee IT infrastructure

Which committee is headed by the MD & CEO and is responsible for implementing the Bank’s credit risk management policy and guidelines?

• Audit Committee

• Credit Policy Committee (CPC)

• Nomination and Remuneration Committee

• Asset Liability Committee

Which committee is approved by the Board for vetting new products or modifications and also approves new or modified processes?

• Product & Process Approval Committee (PPAC)

• Corporate Social Responsibility Committee

• Credit Policy Committee (CPC)

• Risk Management Committee of the Board (RMCB)