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ProductRiskProfiles

Wehavegivengenericriskprofilesofvariousproductsthatyouwilldealwithasacreditmanager/RM.Youneedtorememberthat wearenotincorporatingstructurerisk/mitigationinthismodel.Ifafacilityissecuredbyliquidtangiblesecurity,theriskinvolved wouldbemuchlower.

CorporateLiabilityProducts

CreditRisk Anywhere banking

MarketRisk

OperationalRisk

ReputationRisk

LegalRisk

Nil

Nil

Fair

Moderate

Nominal

EFT/RTGS

Nil

Nil

Fair

Moderate

Nominal

CMS

Moderate

Nil

Fair

Nominal

Nominal

AtParpayments (Dividend Warrants)

Moderate

Nil

Fair

Nominal

Nominal

CashPickUpand Deposit

Nil

Nil

High

Nominal

Nominal

Netbanking

Nil

Nil

Moderate

Nominal

Nominal

CreditCollections

Nominal

Nil

Moderate

Nominal

Nominal

FinitiativesLearningIndiaPvt.Ltd.

CorporateAssetProducts

CreditRisk ProjectLoanswithout recourseon VeryHigh corporate Asset/equipment Loans EquipmentLease WCTermLoan WCCashCredit WCBillPurchase WCFactoring WCReceivable Purchase WCPurchaseBill Discounting LetterofCredit Guarantees (Performance) Guarantees (Financial) L/cDiscounting Fair Fair Fair Fair Fair Fair Fair High Fair Fair High Nominal

MarketRisk

OperationalRisk ReputationRisk Fair Fair

LegalRisk

High Moderate Fair Moderate Moderate Moderate Moderate Moderate Moderate nil nil nil Nil Nil High

Nil Nil Nil Nil Nominal Nominal Nominal Nominal Fair fair Fair Fair Fair Fair Nominal

Fair Moderate Moderate Moderate Moderate Moderate

Fair Fair Fair Fair Fair

Moderate Moderate Moderate fair Fair Fair Moderate Nil Nil Fair Moderate Fair Nominal Nominal Fair Fair Nominal

ExportNegotiations Nominal RestructuredCredit facilities VeryHigh

FinitiativesLearningIndiaPvt.Ltd.

Investments&TreasuryProducts

Operational Risk

CreditRisk InvestmentinCorporate Bonds InvestmentsinTBills

MarketRisk

ReputationRisk

LegalRisk

Fair Nil

VeryHigh Nominal

Nil Nil

Nil Nil

Nil Nil

InvestmentinSLRBonds

Nil

High

Nil

Nil

Nil

InvestmentinMutualFunds InvestmentinEquities Purchaseandsaleofforeign Exchange Forwards Optionsvanila OptionsExotic Swaps Swaptions

Moderate Fair

High VeryHigh

Nil Nil

Nil Nil

Nil Nil

Nil Moderate Moderate Fair Fair Fair

Nominal Nominal Fair High Fair High

Moderate Moderate Moderate Fair Fair Fair

Nil Nil Nil Moderate Moderate Moderate

Nil Nil Nil Moderate Moderate Moderate

LeveragedProducts

VeryHigh

VeryHigh

Fair

Moderate

Fair

FinitiativesLearningIndiaPvt.Ltd.