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Credit risk can be mitigated by proper credit appraisal and underwriting systems, proper and regular monitoring Business Continuity planning is a key pre-requisite for minimising the adverse effects of one of the important areas of operational risk – business disruption and system failures. It would include steps like identifying critical businesses, having a crisis management team and plan, incident management teams, work area recovery, disaster recovery, etc. Asset liability management is a tool to mitigate liquidity risk ; proper bucketing of all the assets and liabilities into the RBI defined time periods helps to analyse the time difference in inflows and outflows related to a bank, which helps it to accordingly take decisions to manage the liquidity risk. Market risk can be mitigated by hedging which helps in reducing the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract, so that the impact of the price movement is nullified (or reduced) on the overall trade.
Which of the following is not a type of bank in India?
As of 2024, which company became the first in the gem and jewellery sector in India to be granted Authorised Economic Operator (AEO) status?
State whether the following statements are true/false:
1 A fixed budget is prepared for only Range of activity.
2 A flexible budget is pre...
Which of the following metric of the bank is dependent on the movements of the interest rate?
How does inflation in a country affect its currency's exchange rate?
In which of the following leadership style, a leaders is considered genuine and honest and cares for the employees’ opinion?
Which of the following statements is/are correct about the city of Shanghai as a global financial center?
1) Shanghai has the highest number o...
In 2023-24 (FY24), how much worth of sovereign gold bonds (SGBs) did the Reserve Bank of India sell, marking the highest-ever response to the instrument...
Under which of the following type of guarantees, the banker guarantees payment of installments spread over a period?
What is the new name of Edelweiss General Insurance?