Risk Management Strategies in NBFCs: A Study on Financial Stability and Growth

This research examines the role of risk management strategies employed by Non-Banking Financial Companies (NBFCs) in India and their impact on financial stability and long-term growth. NBFCs, as key financial intermediaries, operate in a complex environment with unique risk exposures compared to traditional banks. The study explores credit, market, operational, and liquidity risks and the tools used to mitigate them. Using case-based insights and industry data, the paper evaluates how effective risk management frameworks contribute to the financial health and sustainability of NBFCs. The findings aim to offer recommendations for enhancing risk resilience and ensuring sustainable growth in the NBFC sector.