Reserve Bank has been highlighting the need for sound risk management culture of our corporates. Reserve Bank has have been cautioning participants from taking too many bets in one direction. It is essential for the banks to rigorously evaluate unhedged exposures of the  8  BIS central bankers’ speeches  clients by adequately pricing in the risk premia.
In the last few years, Indian corporates have gone for establishment/acquisition of overseas companies, often at the cost of their capability to meet the domestic business needs and without proper assessment of the risk-return tradeoff. When global situation turned stressful, the viability of these overseas entities impact domestic balance sheets. As a result, there have been disinvestments at large losses.