📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      Which risk management strategy involves IIFCL spreading

      its loan portfolio across Power, Roads, Ports, and Urban Infrastructure? 
      A Risk Retention. Correct Answer Incorrect Answer
      B Risk Avoidance. Correct Answer Incorrect Answer
      C Risk Diversification. Correct Answer Incorrect Answer
      D Risk Transfer. Correct Answer Incorrect Answer
      E Risk Arbitrage. Correct Answer Incorrect Answer

      Solution

      Diversification reduces Unsystematic Risk. By not lending to just one sector (like Power), IIFCL ensures that a crisis in that specific industry won't collapse its entire loan portfolio.

      Practice Next

      Relevant for Exams:

      ask-question