QUESTION TWO $[20]$ Read the scenario below and answer the question that follow: VistaFinance, a credit services firm, recently launched a high$-$yield lending program targeting small businesses without traditional collateral. Despite initial market enthusiasm, an economic downturn led to increased default rates. Regulators question whether VistaFinance applied sufficient risk controls and adhered to fair lending practices. As concern grows about solvency and potential penalties, top management debates imposing stricter underwriting criteria or raising interest rates$$each option posing various reputational and operational challenges. Analyse how risk control and risk financing strategies could help VistaFinance address rising defaults, regulatory pressure, and the need to maintain its high$-$yield lending model.