RISK MANAGEMENT

The CBPR model becomes mandatory when a borrower’s aggregate exposure (FB + NFB) is at least______crore rupees?

• 5
• 7.5
• 10
• 25
• 50

Answer explanation

CBPR is mandatory at ₹10 crore+ exposure as per Credit Risk Policy guidelines.

Environmental, Social, Governance & Climate‑risk parameters are introduced for corporate borrowers whose exposure is______crore rupees or more.

• 10
• 25
• 50
• 75
• 100

Answer explanation

ESG & Climate-risk are mandated for corporate exposures of ₹50 crore+.

Which of the following is **NOT** listed as a “No‑Go” trigger in the guidelines?

• NPA with other lenders
• Account red‑flagged in CRILC
• Auditor’s “going‑concern” doubt
• High current ratio (> 1)
• Borrower in RBI defaulter list

Answer explanation

“High current ratio” is not a 'No-Go' trigger; other options are.

Once RM‑Wing tags a proposal as **No‑Go**, fresh exposure can be sanctioned only by the______

• Circle Office
• Credit Approval Committee
• Management Committee of the Board
• Executive Director
• Risk Management Wing

Answer explanation

Only Management Committee of the Board can approve post 'No-Go' tagging.

All individual risk attributes in CBPR are scored on a scale where **1** denotes low risk and **10** denotes high risk. True or False?

• True
• FALSE
• Not stated
• Data insufficient
• Can’t say

Answer explanation

1–Low risk, 10–High risk is prescribed for scoring.

In the composite risk rating used in RBIA, what percentage weight is assigned to Control Risk?

• 0.2
• 0.4
• 0.6
• 0.8
• 1

Answer explanation

Control Risk is 0.8 (80%) in the composite risk rating, as per RBIA process.

When RBIA adopts sampling instead of full verification, what proportion of the portfolio must be examined?

• 5–10%
• 10–20%
• 25–40%
• 50–75%
• 80–90%

Answer explanation

Sampling requires 25–40% portfolio coverage.

What is the prescribed RBIA periodicity for a branch rated Low Risk?

• 6 months
• 9 months
• 12 months
• 18 months
• 24 months

Answer explanation

18-month RBIA periodicity for low-risk branches as per guidelines.

After three consecutive Moderate risk ratings, a branch is classified as “Special Moderate”. Its RBIA frequency then becomes every______months.

• 6
• 9
• 12
• 18
• 24

Answer explanation

9-month frequency applies to “Special Moderate” branches.

Off‑site risk assessment for Low‑risk branches is conducted______months after an onsite RBIA.

• 6
• 9
• 12
• 18
• 24

Answer explanation

12 months post-onsite audit for low-risk branches.