Seybold Report ISSN: 1533-9211
Dr Sunil Kumar Roy
Vol 18, No 8 ( 2023 ) | Licensing: CC 4.0 | Pg no: 67-77 | Published on: 13-08-2023
Abstract
This research paper examines the techniques and methods employed by Non-Banking Financial Companies (NBFCs) in India for risk management. Using secondary data from regulatory reports, financial statements, and academic literature, the study explores the impact of these risk management practices on the financial performance of NBFCs. The findings reveal that NBFCs utilize various risk management techniques, such as credit risk assessment, liquidity management, and operational risk frameworks. Effective implementation of these techniques is associated with higher profitability and capital adequacy. The study emphasizes the importance of comprehensive risk management strategies, integration of risk management into decision-making, and regular monitoring of risks. The research also identifies the need for further studies on specific risk management practices, technology's role in risk management, and comparative analyses across different regions. The findings have implications for NBFCs in India to enhance their risk management practices and promote financial stability within the sector.
Keywords:
Non-Banking Financial Companies (NBFCs), risk management, credit risk assessment, liquidity management, operational risk, financial performance, India