Establish the segregation of duties required around microfinance portfolio risk.
Managing Microfinance Portfolio Risk for Low-Income Segments
Turn microfinance portfolio risk from a stated policy into a practice your organisation can evidence.
Course Overview
In finance the difference between a healthy position on microfinance portfolio risk and a dangerous one is often a single assumption. Models supporting the wider financial and banking practice agenda fail quietly, and usually at the worst moment. It establishes a shared vocabulary for the financial and banking practice capability so that teams can disagree productively about it. The result is the confidence to make and defend decisions about microfinance portfolio risk under scrutiny. Progress on this strand of financial and banking practice is usually lost in the gap between approval and execution. The teaching approach is deliberately practical: participants build a control framework for the practice within financial and banking practice as they go. Applied research in financial and banking practice consistently shows that early structure around microfinance portfolio risk reduces downstream rework. The level assumes working familiarity with the business line but no prior formal training in this strand of financial and banking practice. Participants leave with a plan for the practice within financial and banking practice sized to what their organisation can realistically absorb.
Expected Learning Outcomes
Define the risk appetite applying to microfinance portfolio risk and translate it into operating limits.
Establish escalation routes for microfinance portfolio risk that work outside normal hours.
Price microfinance portfolio risk to reflect the risk actually being taken.
Design reconciliation and settlement controls covering microfinance portfolio risk.
Sequence improvements to microfinance portfolio risk so that each step makes the next one easier.
Reduce avoidable variation in how microfinance portfolio risk is carried out across teams.
Who Should Attend
Compliance officers overseeing microfinance portfolio risk.
Internal auditors reviewing the controls around microfinance portfolio risk.
Treasury and asset-liability staff managing microfinance portfolio risk.
Consultants and advisers supporting clients on microfinance portfolio risk.
Business partners who must understand microfinance portfolio risk well enough to challenge it.
Regulatory reporting analysts covering microfinance portfolio risk.
Course Modules
Microfinance portfolio risk: stress testing and scenario analysis
2 sessions · 8 pointsSession 1Evidencing that microfinance portfolio risk worked as designed
- Anticipate the objections microfinance portfolio risk will raise and prepare the answers.
- Rehearse the briefing on microfinance portfolio risk that would follow an incident.
- Set the review interval for microfinance portfolio risk and who attends.
- Agree the indicators that will show whether microfinance portfolio risk is improving.
Session 2What to measure in microfinance portfolio risk and what to ignore
- Verify six months later that changes to microfinance portfolio risk have held.
- Review the pricing of microfinance portfolio risk against the risk being assumed.
- Confirm client due diligence standards applied to microfinance portfolio risk are current.
- Compare the cost of microfinance portfolio risk with the cost of its absence.
Microfinance portfolio risk: risk appetite, limits and policy
2 sessions · 8 pointsSession 1Getting other functions to support microfinance portfolio risk
- Prepare the evidence pack demonstrating microfinance portfolio risk operated as designed.
- Agree who signs off microfinance portfolio risk and record that they did.
- Set out the decisions in microfinance portfolio risk that require sign-off and by whom.
- Confirm regulatory reporting on microfinance portfolio risk is complete, timely and reconciled.
Session 2The hard cases in microfinance portfolio risk and how to reason about them
- Verify reconciliation and settlement controls covering microfinance portfolio risk.
- Record the rationale for each significant choice made about microfinance portfolio risk.
- Translate the appetite for microfinance portfolio risk into limits someone monitors daily.
- Assess the capital consumed by microfinance portfolio risk under current and stressed conditions.
Microfinance portfolio risk: measurement, models and their assumptions
2 sessions · 8 pointsSession 1Reporting microfinance portfolio risk so the reader can act on it
- Set escalation thresholds for microfinance portfolio risk that work out of hours.
- Test microfinance portfolio risk against a scenario the organisation would rather not model.
- Estimate the resource microfinance portfolio risk requires to run as designed.
- Set early warning indicators for microfinance portfolio risk with defined action thresholds.
Session 2Setting a limit on microfinance portfolio risk that will actually be respected
- State the risk appetite for microfinance portfolio risk as a number, not an adjective.
- Design the exception process for microfinance portfolio risk and require a documented rationale.
- Check the legal and contractual exposure created by microfinance portfolio risk.
- Define acceptance criteria for microfinance portfolio risk in advance.
Microfinance portfolio risk: pricing, profitability and risk-adjusted return
2 sessions · 8 pointsSession 1Pricing microfinance portfolio risk for the risk actually taken
- Prepare the response for the most likely failure in microfinance portfolio risk.
- Record what was learned when microfinance portfolio risk did not go as planned.
- Plan the sequence in which improvements to microfinance portfolio risk will be introduced.
- Reduce the variation in how microfinance portfolio risk is carried out between teams.
Session 2The early warning on microfinance portfolio risk that arrives in time
- Check that microfinance portfolio risk still works when volumes rise unexpectedly.
- Confirm segregation of duties across initiation, approval and settlement of microfinance portfolio risk.
- Identify the key controls over microfinance portfolio risk and who tests them.
- List the assumptions in any model supporting microfinance portfolio risk and when each was last challenged.
Choose the package that suits you
Silver Package
At least 3 people
- Workshop or Program Participation
- Airport Transfers
- Customized Badge
- Expert Mentorship (Private Sessions)
- Supervision & Secretarial Services
- Accredited Certificate of Participation
- Complete Training Kit
- Coffee Break
- Closing Ceremony
Gold Package
At least 3 people
- 5-night stay in a 5-star hotel
- Workshop or Program Participation
- Airport Transfers
- Customized Badge
- Expert Mentorship (Private Sessions)
- Supervision & Secretarial Services
- Accredited Certificate of Participation
- Complete Training Kit
- Coffee Break
- Closing Ceremony
Complete your registration
We will contact you within one business day to confirm.