The Reserve Bank held a Conference in Mumbai for the Heads of Assurance Functions (i.e., Chief Compliance Officers, Chief Risk Officers and Heads of Internal Audit) of select Non-Banking Financial Companies (NBFCs). The conference was attended by about 280 participants representing more than 100 NBFCs.
The conference urged NBFCs to bolster governance and assurance functions and maintain constant vigil against potential risks and vulnerabilities. In the highly dynamic and challenging environment in which financial entities operate, they are exposed to a multitude of risks that can impact their financial and operational resilience. It inter-alia highlighted cybersecurity and operational risks; credit risks from rule-based credit models; and liquidity risks. The conference conveyed the Reserve Bank’s Supervisory expectations from the regulated entities to ensure independent and meaningful assurance functions as well as fair and transparent conduct towards customers.
