MICROFINANCE BANKS RISK MANAGEMENT SYSTEM AND INTERNAL CONTROLS
Live-Online Training: N166,625
Classroom Training: N 247,250
3 - 4 participants: 5% discount
5 or more participants: 10% discount
(Available also for Customised Training by Duration, Venue & Fee)
(PARTICIPANTS MUST BE WITH THEIR LAPTOPS)
Programme Description:
Risk Management and Internal Control Systems are essential components of a robust Microfinance Bank. One without the other turns the bank like a ship without the rudder. In addition to this, credit is usually the largest risk asset of MFBs, hence, it is imperative that it is given a place of pride in discussing risk management.
Course Objectives
By the end of this training, participants will:
- Be able to understand and explain Risk Management and Internal Control Systems in MFBs.
- Be able to identify Risks and Challenges facing Microfinance Banks.
- Be able to understand effective Risk Management and Internal Controls.
- Be able to understand the realities, conditions and consequences of funding sources and choosing the right mix.
- Be able to understand the challenges of mobilizing and managing public deposits.
- Be able to understand lending methodologies.
- Be able to understand overview of credit management.
- Be able to understand managing concessional funds.
Course Contents:
DAY ONE
Introduction to Risk Management.
Risks and Challenges Mfbs face:
- Strategic Risks
- Liquidity Risks
- Management Risk
- Credit Risk
- Interest Rate risk
- Operational Risks
- Market Risk
Effective risk Management
- Features of a good risk management framework
- Guidelines for implementing risk management
- Key roles and responsibilities
- Obstacles to Risk Management
- Risk Management Feedback loop
- Key components of the loop, conditions for effective applications
- Realities, conditions, and consequences of funding sources and choosing a mix
- Challenges of mobilizing and managing public deposits
- Micro-lending methodologies
Overview of Credit Management:
- Initiation
- Character appraisal and assessment
- Securisation (collateral), traditional, innovative, character-based group)
- Approval
- Disbursement
- Repayment plan
- Default and Recovery
- Loan Portfolio Risk Management, etc
DAY TWO
Credit Risk Management
- Monitoring loans, identifying and managing arrears
- Causes and costs of delinquency
- Borrower over -indebtedness
- Double Borrowing
- Loan restructuring
- Controlling delinquency
- Information exchange on bad borrowers
- Credit Information System, credit bureau
- Social Responsibility and Community Development
Managing Concessional (below market rates) Funds
- Borrowings
- Subordinated debts
- Project/Program funds
- Grants
- Quasi-Equity
- Socially responsible investments
DAY THREE
Group Lending
- Formation of Formal and informal groups
- Why Group Lending
- Organizational structure /Methodologies
- Record Keeping /Field Monitoring
- Understanding Loan Delinquency
- Signs of Delinquency with MFB Customers
- What are the causes of MFB Loan Delinquency
- How Loan Losses affect Product Development/Loan Disbursement
- Delinquency Prevention /Relationship Management.
DAY FOUR
Loan Loss Provision & Reserves
- Measuring Delinquency
- Portfolio at Risk (PAR) /PAR Limitations
- Controlling Delinquency
- Loan Portfolio Quality Analysis
- Group /Association formations
- Establishment of formal and informal groups.
- Group Meetings and Leaders of the Groups.
- Evaluating the Results of the Products and Services.
- Evaluation and Feedback.