Question
Which of the following statements correctly describe
credit risk assessment and credit risk management?Solution
• Credit Risk Assessment → This is the initial stage, where lenders evaluate the probability of borrower default. It includes: o Reviewing financial statements o Checking repayment history and credit score o Assessing collateral and repayment capacity • Credit Risk Management → A broader and ongoing process that follows assessment. It includes: o Setting exposure limits and risk thresholds o Monitoring borrower performance over time o Taking preventive or corrective measures to reduce losses o Developing recovery strategies for stressed or defaulted loans Thus: • Assessment = Evaluation & Quantification • Management = Continuous control & mitigation Together, these processes ensure sound lending practices and protect banks from undue exposure to default risk.
During the year 2016-17, the profit of the business before charging manager's commission was Rs. 1,89,000. If the manager's commission is 5% after charg...
This kind of audit is conducted generally between two annual audits is known as which among the following?
What is the maximum cost of the project/unit allowed under PMEGP for 2nd loan in the manufacturing sector (for upgradation)?
A company purchased machinery for ₹10,00,000 on 1 April 2021. The machine has a useful life of 5 years, and depreciation is charged using the straight...
Omega Ltd. has idle capacity and receives a special export order for 2,000 units at ₹420 per unit. Normal price = ₹500. Unit variable cost = ₹350....
The term ‘ Previous year’ is defined under which section of Income Tax Act?
Calculate the Proprietary Ratio of the company?
The SARFAESI Act also provides for the establishment of ARCs regulated by RBI. What is the full form of ARC?
Which of the following statements is correct?
The point at which the liability to charge tax arises is called as the