Enterprise Risk Management Software and Basel III

Questions and Answers

What was the primary purpose of the revamp of the ERMS?

To comply with the regulatory requirements of the Basel III framework (correct)

To enhance exposure monitoring for mutual funds

To increase the number of users in Regional Offices

To improve client satisfaction with risk assessments

Which regulatory framework does the refined ERMS specifically address?

Basel II

Solvency II

Basel III (correct)

Dodd-Frank Act

What is the primary function of the new Asset Liability Management (ALM) software?

To streamline client risk rating evaluations

To improve liquidity and interest rate risk management (correct)

To enhance external credit rating processes

To manage credit ratings and collateral requirements

Who heads the Risk Management Committees constituted in 2023-24?

Deputy Managing Directors Signup and view all the answers

Which of the following committees focuses specifically on Operational Risks?

Operational Risk Management Committee (ORMC) Signup and view all the answers

What initiative has RMD taken regarding Standard Operating Procedures (SOPs)?

SOPs are being prepared for Business Products of NABARD Signup and view all the answers

Which company was responsible for developing the new ALM software?

Surya Software Systems Private Limited Signup and view all the answers

Which risk does the Credit Risk Management Committee (CRMC) focus on?

Credit Risks Signup and view all the answers

What is the primary function of the Enterprise Content Management (ECM) solution implemented by the bank?

To streamline case creation and decision-making processes Signup and view all the answers

What significant feature does the HRMS-Empower system automate?

HR related activities and processes Signup and view all the answers

Which mobile platforms is the ECM Mobile app available on since its launch?

Android and iOS Signup and view all the answers

What is the main purpose of the 'DigiDak' module integrated into ECM?

To access and track organizational communications Signup and view all the answers

What technology enables streamlined access in the NABARD Desktop App?

Single Sign-On authentication Signup and view all the answers

What is the primary focus of the revised Fraud Risk Management Policy?

Operational aspects of fraud prevention and response Signup and view all the answers

Which policy specifically deals with the formulation and review of operational guidelines?

Operational Guidelines for Formulation and Annual Review Signup and view all the answers

What does the Standard Operating Procedure (SOP) for preparing SOPs entail?

Processes for drafting business product SOPs Signup and view all the answers

Which policy addresses the monitoring format for refinance products aimed at financial institutions?

Review of Default Forecasting and Monitoring Format Signup and view all the answers

Which document is concerned with the delegation of sanctioning and disbursement powers?

Policy on Review of Delegation of Sanctioning Powers Signup and view all the answers

What type of risk does the Credit Risk Mitigation and Collateral Management Framework primarily focus on?

Credit risk Signup and view all the answers

Which policy is not related to stress testing protocols?

Fraud Risk Management – Operational Guidelines Signup and view all the answers

How many policies related to risk management were reviewed and revised?

24 Signup and view all the answers

Which option best describes the Guidelines for debarment of NGOs?

Criteria for evaluating NGO compliance Signup and view all the answers

What area does the revised policy for Default Forecasting specifically tackle?

Monitoring defaults in credit products Signup and view all the answers

What is the primary focus of the cyber security measures initiated by NABARD?

Leveraging technology for effective risk management Signup and view all the answers

What function does Data Loss Prevention (DLP) serve within an organization?

Monitoring and preventing unauthorized data transfer Signup and view all the answers

Which aspect of data security does Data Classification prioritize?

Categorizing data by its sensitivity Signup and view all the answers

What is the purpose of the Mobile Device Management (MDM) solution?

To manage and secure mobile devices within an organization Signup and view all the answers

Which of the following statements is true regarding Database Activity Monitoring (DAM)?

It helps identify unauthorized data access within the database. Signup and view all the answers

Which of the following is NOT included in the cyber security solutions mentioned?

User Access Control Signup and view all the answers

What impact does a suitable Database Activity Monitoring solution aim to achieve?

To enhance security against unauthorized access Signup and view all the answers

What type of data does the DLP solution specifically aim to protect?

Sensitive information such as PII and intellectual property Signup and view all the answers

In what manner does Data Classification contribute to data security?

It allows organizations to prioritize security measures based on data sensitivity. Signup and view all the answers

The implementation of MDM solutions primarily ensures which of the following?

Centralized management and security of mobile devices Signup and view all the answers

What is the total outstanding borrowings managed by the Finance Department during FY 2023-24?

₹4,87,233 crore Signup and view all the answers

Which organization issued India’s first ever AAA-rated, externally certified social bond?

NABARD Signup and view all the answers

What was the total subscription for the social bond issued by NABARD against the base issue of ₹1,000 crore?

₹8,560 crore Signup and view all the answers

How much priority sector lending (PSL) deposits were mobilized during FY 2023-24?

₹1,31,459 crore Signup and view all the answers

As of March 31, 2024, what was the total outstanding investments amount?

₹97,574 crore Signup and view all the answers

What amount was disbursed towards rural infrastructure creation during FY 2023-24?

₹42,563 crore Signup and view all the answers

What role does the Finance Department exclusively manage on the Balance Sheet?

Liabilities Signup and view all the answers

What was the total amount of bonds issued by NABARD in FY 2023-24?

₹65,393 crore Signup and view all the answers

Which guidelines were followed for the external certification of the social bond issued by NABARD?

ICMA Social Bond Guidelines Signup and view all the answers

Which figure represents the total outstanding priority sector lending (PSL) deposits during FY 2023-24?

₹3,01,905 crore Signup and view all the answers

Study Notes

Enterprise Risk Management Software (ERMS)

Widely utilized at Regional Offices and Head Office Departments for risk rating and monitoring.
Upgraded to align with RBI's Master Directions dated September 21, 2023, focusing on Basel III framework.
Refined modules cover Credit, Market, and Operational Risk Weighted Assets, Collaterals, External Credit Ratings, and regulatory disclosures under Basel III Pillars I, II, and III.

Asset Liability Management (ALM) Software

New ALM software launched on April 2, 2024, enhancing liquidity and interest rate risk management.
Developed by Surya Software Systems Private Limited in compliance with latest regulatory standards.

Risk Management Committees

Established committees led by Deputy Managing Directors:
- Credit Risk Management Committee (CRMC)
- Operational Risk Management Committee (ORMC)
- Market Risk Management Committee (MRMC)
Focus on implementation of strategies addressing Credit, Market, and Operational risks.

Standard Operating Procedures (SOPs) and Policies

RMD creating SOPs for NABARD's Business Products in collaboration with relevant departments.
24 risk management policies reviewed and revised, including:
- Stress Testing Policy and Fraud Risk Management Policy.
- Guidelines for NGO/Channel Partner debarment.
- Credit Risk Mitigation Framework adjustments.

Regional Risk Awareness

Conducted five Regional Risk Awareness Workshops to promote understanding and management of risks across staff levels.

Financial Management

Total borrowings by Finance Department reached ₹4,87,233 crore, with PSL deposits at ₹3,01,905 crore for FY 2023-24.
NABARD issued India's first AAA-rated, externally certified Social bond, achieving a subscription of ₹8,560 crore against a base issue of ₹1,000 crore, certified by KPMG.
Achieved the status of the largest domestic bond issuer in the market with bond issuance of ₹65,393 crore in FY 2023-24.

IT Infrastructure and Cybersecurity

Enhanced digital infrastructure focusing on cybersecurity with initiatives implemented through Pragati 1.0.
Adopted tools for Data Loss Prevention (DLP), Data Classification, and Mobile Device Management (MDM).
Introduced Database Activity Monitoring (DAM) to track unauthorized data access.

Enterprise Content Management (ECM)

Streamlined processes through ECM leading to approval efficiency, processing over 62,000 cases and digitizing 1.5 million pages in FY 2023-24.
Launch of the ECM Mobile app which aids in processing cases on mobile devices.

Human Resource Management System (HRMS)

HRMS-Empower enables automation of HR activities including planning, appraisals, leave applications, and welfare schemes.
Ongoing improvements to the user interface and user experience with Oracle's Peoplesoft.

NABARD Desktop App

Launched a Windows desktop application to provide personalized organizational information and communicate through a streamlined interface with support for Single Sign-On and REST APIs.

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Description

This quiz focuses on the Enterprise Risk Management Software (ERMS) and its recent updates in compliance with RBI's Master Directions on the Basel III framework. It covers aspects of risk rating, exposure monitoring, and the specific requirements under Pillar I, II, and III of Basel III. Test your knowledge on how ERMS is implemented in financial institutions.