RISK-BASED MANAGEMENT COURSE IN MICROFINANCE BANKS/INSTITUTIONS (MFB/2024/13)

The main challenge of every Banking Institution is Risk; the possibility of unfavorable outcome which if not properly managed can threaten the survival of the organization and destabilize the financial system. The recent Global Financial Crisis (GFC) which ‘slapped’ the world economy unanticipated was as a result of Risk Management Lax which started in the United States of America and almost consumed the world economy. No wonder there is a major paradigm shift in banking supervision from compliance supervision to Risk-based supervisory approaches. Of all the risk factors, the most critical is the PEOPLE.

Although, the Regulatory/Supervisory Authorities have mega responsibilities to ensure the safety and soundness of the Banking system, they can never totally deal with the universe of potential risks of the regulated. This has made it imperative for banking institutions, in addition to the efforts of the regulators, to have what we call meta-regulation i.e. they should internalize regulatory goals by putting in place sound internal risk management and governance processes. Despite the fact that every banking institution has its Risk Management Organs, we posit that risk management and its awareness is the responsibility of everybody in the organization from the least to the top. This should be integrated into the culture of the Organization.

To achieve this, the generality of the staff of Banking Institutions needs to be sensitized to the imperativeness of risk management consciousness. This will enable them to be aware of their responsibilities under the new Risk-based Supervisory regime of the Central Bank of Nigeria.

OBJECTIVES

At the end of this intensive seminar, participants will be able to:

• Explain the concept of Risk, Risk event, Risk management and Risk-based supervision
• Discuss the significant activities in their banks
• Identify inherent risk in the significant activities
• Acquire requisite tools, techniques and methodology for evaluating and monitoring banks’ risk profiles under Risk-based Supervision (RBS)
• Acquire general knowledge on risks and its management.