Risk Management
Our Comprehensive Risk Management Approach
Our robust risk management strategy follows the ‘Three Lines of Defence’ approach, with company management as the first line, the risk management and compliance team as the second line, and internal audit as the third line. This framework ensures proactive risk identification, measurement, monitoring, and mitigation throughout the organisation. Guided by a dedicated Risk Management Committee, we implement effective systems to address all the Company’s significant risks.
Risk Management Framework
| Line of Defence | Functions | Scope and Authority |
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| The Management |
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| Functional Teams |
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| Internal Audit |
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Risk Assessment Methodology
Customers' performance is monitored through monthly reports and dashboards, parameters include:
Customer profile GeographyBureau checksLTV and DBR
Monitoring
Highlighting expectations based on monthly reporting to respective teams
The tools used for EWS include bureau data, bounce trends and market news, if any
Early Warning Signals
Tracking the current repayment behavior of the customers through the bureau data and the same is utilised for better collection efficiency
Off-Us Performance
Defining various scenarios, data compilation and validation, and modelling the impact of scenarios on risk parameters through PD, LGD, and EAD.
Stress Testing
Monitoring credit quality and thereafter taking corrective actions w.r.t policy and processes. Data is grouped into segments based on origination month and analysed for various periods.
Vintage Analysis
Board of Directors
Mr. Srinivasan Sridhar (Chairman and Independent Director)
He is the Chairman and an Independent Director on our Board of Directors. He holds a Bachelor’s degree in science from Bangalore University and a master’s degree of science in physics from the Indian Institute of Technology, Delhi. He has previously worked in the banking and finance industry and has held several positions in retail, corporate, and export / import banking, including as the chairman of the National Housing Bank and Central Bank of India. While he was chairman and managing director of the National Housing Bank, he was responsible for a number of initiatives, such as the NHB Residex, Rural Housing Fund, and Reverse Mortgage for senior citizens. Prior to this, he was associated with the Export Import Bank of India as executive director. He is a certified associate of the Indian Institute of Bankers and was conferred with honorary fellowship of the Indian Institute of Banking and Finance in recognition of his contribution in the field of banking and finance.
Mr. Nirmal Jain (Non-Executive Director)
He is a Non-Executive Director on our Board of Directors and was one of the first Directors of the Company. He holds a PGDM (Post Graduate Diploma in Management) from the Indian Institute of Management (IIM), Ahmedabad and is a rank holder Chartered Accountant and a Cost Accountant. He started his career in 1989 with Hindustan Unilever Limited. He founded IIFL group in 1995. It started as an independent equity research company in India. Over the last 26 years, he has led the expansion of the group, while remaining focused on financial services. The group through four listed entities, has leading presence in India’s Wealth and Asset management, consumer lending, securities trading and discount Broking spaces. With an impeccable track record of governance and growth, the group has attracted marquee investors and won accolades internationally. He is currently also the chairman of IIFL Finance Limited, the promoter of our Promoter.
Mr. Rajamani Venkataraman (Non-Executive Director)
He is a Non-Executive Director on our Board of Directors. He holds Post Graduate Diploma in Management from Indian Institute of Management (IIM), Bengaluru and Bachelor in Electronics and Electrical Communications Engineering from IIT Kharagpur. He joined the Company’s Board in July 1999. He has been contributing immensely to the establishment of various businesses and spearheading key initiatives of the group over the past 22 years. He previously held senior managerial positions in ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of US and Barclays – BZW. He worked as an Assistant Vice President with G E Capital Services India Limited in their private equity division. He has a varied experience of more than 29 years in the financial services sector. He is currently also the managing director and one of the promoters of our Promoter.
Mr. Kranti Sinha (Independent Director)
He is an Independent Director on our Board of Directors. He has significant experience in the insurance and housing finance industries. In the past, he served as the director and chief executive of LIC Housing Finance Limited, while concurrently serving as the managing director of LICHFL Care Homes Limited. He was also the deputy president of the Governing Council of the Insurance Institute of India and was a member of the Governing Council of the National Insurance Academy.
Mr. Monu Ratra (Executive Director and Chief Executive Officer)
He is an Executive Director on our Board of Directors and is the Chief Executive Officer of the Company. He holds a Bachelor’s degree in architecture from Guru Nanak Dev University and a master’s degree in Post Graduate Diploma in Management from Lal Bahadur Shastri Institute of Management, Delhi. He has significant experience in the financial services industry. Prior to joining the Company, he worked with Indiabulls Housing Finance Limited as national business manager where he was responsible for setting up, and managing, the retail home loan business along with the home equity business. He has also previously worked with ICICI Bank Limited and HDFC Bank Limited.
Mr. Arun Kumar Purwar (Independent Director)
He works as Chairman of Eroute Technologies Private Limited, a fintech Co. He also works as an Independent Director in Companies across diverse sectors like power, telecom, steel, engineering consultancy, pharma and financial services. He also acts as an advisor to Mizuho Securities, Japan. He was Chairman of the State Bank of India (“SBI”) from 2002 to 2006 and Chairman of the Indian Bank Association during 2005 to 2006. He has previously held positions such as Managing Director of State Bank of Patiala and has been associated in the setting up of SBI Life. Post his retirement from SBI, he was associated with a leading industry house in setting up the first healthcare focused private equity fund as well as a non-banking finance company focused on funding real estate projects as well as educational institutions. He has won several awards including the CEO of the year award from the Institute of Technology and Management (2004), “Outstanding Achiever of the Year” award from the Indian Banks’ Association (2004) and “Finance Man of the Year” Award by the Bombay Management Association in 2006.
Ms. Mohua Mukherjee (Independent Director)
She is an Independent Director on our Board of Directors. She is a professional with over three decades of experience in development economics and has worked with World Bank in Washington DC and has led policy dialogue and formulated investment projects in relation to the UN’s Millennium Development Goals and later the Sustainable Development Goals. She has led the India Solar Energy Team of the World Bank and designed the USD 640 million blended finance Solar Rooftops project with the State Bank of India. She has also worked for Citibank and ABN Amro in Kenya. She is currently a World Bank consultant and she is Advisor to the India Smart Grid Forum. She has a Bachelor’s and Master’s Degree in Economics, with distinction, and a Master of Business Administration degree in International Finance, all from Boston University. She also has a certificate in Public Private Partnerships from the Harvard Kennedy School.
Mr. Kabir Mathur (Nominee Director)
He is Head of Asia Pacific within the Private Equities Department of Abu Dhabi Investment Authority (ADIA). He is responsible for leading all aspects of AIDA’s private equity activities in the Asia Pacific region and is a member of the Private Equity Executive Committee. Prior to joining ADIA in 2018, Mr. Mathur worked at Kohlberg Kravis Roberts & Co (KKR) where he was responsible for sourcing, executing and managing private equity investments in Asia. Mr. Mathur joined KKR in 2008, having previously worked at TPG Capital, also in their Asian private equity business. Mr. Mathur began his career in the Investment Banking division of Citigroup/Salomon Smith Barney. Mr. Mathur graduated from the London School of Economics and Political Science with a BSc (Hons.) in Economics.
Mr. Venkataraman Anantharaman (Independent Director)
He is experienced in financial services sector having led corporate and investment banking teams in leading international institutions, including Standard Chartered Bank, Credit Suisse, Deutsche Bank, and Bank of America. Advisory experience in sectors including technology, consumer & retail, financial services, risk management. Engineering from Jadavpur University, MBA from XLRI, FT Non Executive Director Diploma and ESG Competent Boards Certificate and Designation.