A Study On Credit Risk Assessment & Management At Sakthi Finance With Reference To Risk Assessment Models & Methodologies Applied
Keywords:
Credit Risk, Risk Assessment Models, Risk Management, Credit Scoring, Loan Default Prediction, Non-Banking Financial Companies (NBFCs), Risk Mitigation Strategies, Financial Stability, Portfolio DiversificationAbstract
Credit risk assessment and management play a crucial role in the financial stability of non-banking financial
companies (NBFCs) like Sakthi Finance. This study explores various risk assessment models and methodologies
employed to evaluate and mitigate credit risk. It examines key factors influencing credit risk, including borrower
credibility, market conditions, and regulatory frameworks. The research highlights statistical models, credit
scoring techniques, and machine learning approaches used for risk evaluation. Furthermore, it assesses the
effectiveness of traditional versus modern methodologies in predicting loan defaults. The study also delves into
risk mitigation strategies like collateral management and portfolio diversification. A comparative analysis of
different risk assessment tools is presented to identify the most efficient approach. Data-driven insights and case
studies provide a practical perspective on risk management at Sakthi Finance. The findings aim to enhance risk
prediction accuracy and reduce financial losses. Overall, this study contributes to developing a robust credit risk
management framework for NBFCs
