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What is the primary objective of the Risk Management Department's initiatives during FY 2023-24?
What is the primary objective of the Risk Management Department's initiatives during FY 2023-24?
To improve enterprise risk management systems and ensure business continuity.
When does the Basel III framework become applicable to NABARD according to the RBI's Master Directions?
When does the Basel III framework become applicable to NABARD according to the RBI's Master Directions?
01 April 2024.
How many risk management policies related to Basel III were issued or revised during 2023-24?
How many risk management policies related to Basel III were issued or revised during 2023-24?
10 risk management policies.
What types of software applications were fine-tuned to comply with Basel III?
What types of software applications were fine-tuned to comply with Basel III?
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What is the function of the Enterprise Risk Management Software (ERMS) implemented by the Risk Management Department?
What is the function of the Enterprise Risk Management Software (ERMS) implemented by the Risk Management Department?
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List two types of risk covered by the modules in the ERMS.
List two types of risk covered by the modules in the ERMS.
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What were the main discussions conducted by the Risk Management Department in relation to Basel III?
What were the main discussions conducted by the Risk Management Department in relation to Basel III?
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What is one benefit of automating the enterprise risk management functions of the Bank?
What is one benefit of automating the enterprise risk management functions of the Bank?
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What are the primary functions of the Enterprise Risk Management Software (ERMS)?
What are the primary functions of the Enterprise Risk Management Software (ERMS)?
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How has the ERMS been updated in accordance with RBI's 2023 Master Directions?
How has the ERMS been updated in accordance with RBI's 2023 Master Directions?
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What is the significance of the Asset Liability Management (ALM) software launched in April 2024?
What is the significance of the Asset Liability Management (ALM) software launched in April 2024?
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Who heads the Risk Management Committees, and what is their focus?
Who heads the Risk Management Committees, and what is their focus?
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What is the current status of preparing Standard Operating Procedures (SOPs) at NABARD?
What is the current status of preparing Standard Operating Procedures (SOPs) at NABARD?
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What role does the Credit Risk Management Committee (CRMC) play in the Bank?
What role does the Credit Risk Management Committee (CRMC) play in the Bank?
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What are the key modules included in the refined ERMS?
What are the key modules included in the refined ERMS?
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Why is it important for the Bank to comply with Basel III framework?
Why is it important for the Bank to comply with Basel III framework?
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What is the goal of the Risk Management Department (RMD) in the Bank?
What is the goal of the Risk Management Department (RMD) in the Bank?
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How does the Market Risk Management Committee (MRMC) contribute to the Bank's operations?
How does the Market Risk Management Committee (MRMC) contribute to the Bank's operations?
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How did the Regional Risk Awareness Workshops contribute to risk management culture?
How did the Regional Risk Awareness Workshops contribute to risk management culture?
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What was NABARD's total outstanding borrowings during FY 2023-24?
What was NABARD's total outstanding borrowings during FY 2023-24?
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What significant bond was issued by NABARD during the year?
What significant bond was issued by NABARD during the year?
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How much was the total subscription for NABARD's Social bond issuance?
How much was the total subscription for NABARD's Social bond issuance?
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What amount of PSL deposits was mobilized by NABARD during FY 2023-24?
What amount of PSL deposits was mobilized by NABARD during FY 2023-24?
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What certification did the Social bond receive, and from which organization?
What certification did the Social bond receive, and from which organization?
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What was the total amount disbursed towards rural infrastructure creation in FY 2023-24?
What was the total amount disbursed towards rural infrastructure creation in FY 2023-24?
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How much did NABARD issue in bonds during FY 2023-24, making it the largest borrower in the market?
How much did NABARD issue in bonds during FY 2023-24, making it the largest borrower in the market?
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What were the total outstanding PSL deposits managed by NABARD during FY 2023-24?
What were the total outstanding PSL deposits managed by NABARD during FY 2023-24?
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What was the total size of NABARD's outstanding investments as of 31 March 2024?
What was the total size of NABARD's outstanding investments as of 31 March 2024?
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How many meetings did the Asset Liability Management Committee (ALCO) conduct during 2023-24?
How many meetings did the Asset Liability Management Committee (ALCO) conduct during 2023-24?
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What initiative was introduced by the Risk Management Department to promote risk awareness?
What initiative was introduced by the Risk Management Department to promote risk awareness?
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What was the total loan outstanding reported as of 31.03.2024?
What was the total loan outstanding reported as of 31.03.2024?
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What was the purpose of the Enterprise Risk Management Committee (ERMC) meetings conducted during 2023-24?
What was the purpose of the Enterprise Risk Management Committee (ERMC) meetings conducted during 2023-24?
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As of 31.03.2024, what percentage of total borrowings does ST Refinance represent?
As of 31.03.2024, what percentage of total borrowings does ST Refinance represent?
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What change was made to the internal risk rating model for NIDA loans?
What change was made to the internal risk rating model for NIDA loans?
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How often are knowledge capsules made available on the Risk Management Corner?
How often are knowledge capsules made available on the Risk Management Corner?
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Which category had the highest reported amount in loans as of the data provided for 31.03.2024?
Which category had the highest reported amount in loans as of the data provided for 31.03.2024?
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What is the total amount under 'Other Loans' as of 31.03.2024?
What is the total amount under 'Other Loans' as of 31.03.2024?
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What was the focus of the Default Forecasting Model redesign in relation to NBFCs?
What was the focus of the Default Forecasting Model redesign in relation to NBFCs?
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What is the total amount reported under PSL Products as of 31.03.2024?
What is the total amount reported under PSL Products as of 31.03.2024?
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What type of policies were introduced concerning the management of IT Services?
What type of policies were introduced concerning the management of IT Services?
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Which committee was responsible for sanctions related to Stressed Assets Management?
Which committee was responsible for sanctions related to Stressed Assets Management?
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What were the revised screening parameters for according to the market risk section?
What were the revised screening parameters for according to the market risk section?
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What term describes the knowledge segments provided under the Risk Management Corner?
What term describes the knowledge segments provided under the Risk Management Corner?
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Study Notes
Risk Management Initiatives 2023-24
- Aimed to enhance enterprise risk management systems, improve frameworks, and automate risk functions for business continuity.
Basel III Implementation
- Effective from 01 April 2024, Basel III framework mandated for all AIFIs, including NABARD.
- Conducted deliberations to identify necessary changes in policies and system software for compliance.
- Issued or revised 10 risk management policies related to Basel III.
- Key software like CLMAS and ERMS fine-tuned for compliance, including automated generation of CRAR.
Enterprise Risk Management Software (ERMS)
- Implemented ERMS to strengthen the Risk Management Framework and automate functions.
- ERMS consists of 22 modules focused on Credit, Market, Enterprise Risk, and Early Warning Systems (EWS).
- Enhanced to comply with RBI's guidelines on Basel III, covering modules like CRWA and Market Disclosures.
Asset Liability Management (ALM) Software
- New ALM software launched on 02 April 2024 to manage liquidity and interest rate risks, developed to meet regulatory standards.
Risk Management Committees
- Established committees led by Deputy Managing Directors: CRMC, ORMC, and MRMC for focused management of credit, market, and operational risks.
Standard Operation Procedures (SOPs)
- Preparation of SOPs for NABARD's business products initiated in collaboration with relevant departments.
Enterprise Level Meetings
- Six meetings of the Risk Management Committee of the Board (RMCB) held for oversight.
- 14 ALCO meetings conducted for asset-liability alignment with market conditions.
- Four Enterprise Risk Management Committee (ERMC) meetings held for risk review and mitigation strategies.
Risk Management Culture
- The "Risk Management Corner" launched to promote risk awareness through knowledge capsules and segmented information.
Other Initiatives
- Credit Risk: Committee approach introduced for refinancing and stressed asset management; internal rating model upgraded.
- Market Risk: Revised screening parameters for mutual funds and broker empanelment; new policies on IT outsourcing introduced.
- Five regional workshops organized to cultivate a robust risk management culture.
Finance Overview for FY 2023-24
- Total outstanding borrowings of ₹4,87,233 crore and outstanding PSL deposits of ₹3,01,905 crore managed by Finance Department.
Social Bond Issuance
- NABARD issued India's first AAA-rated social bond with a base issue of ₹1,000 crore, achieving a subscription of ₹8,560 crore.
Domestic Bond Issuance Leadership
- Issued ₹65,393 crore of bonds, making NABARD the largest borrower in the market.
Financial Position as of 31 March 2024
- Total outstanding investments reached ₹97,574 crore.
- ₹1,31,459 crore PSL deposits mobilized, with ₹42,563 crore earmarked for rural infrastructure.
Loan Outstanding
- Total loans outstanding stood at ₹7,95,191 crore, with various product allocations for ST Refinance, LT Refinance, and PSL products.
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Description
Explore the major initiatives undertaken by the Risk Management Department in FY 2023-24. This quiz covers the improvements in enterprise risk management systems, frameworks, and automation processes aimed at mitigating risks and ensuring business continuity.
