CENTRE FOR SELF-HELP DEVELOPMENT

Institute of micro-finance and cooperative development.

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Training on "Risk Management in Microfinance" Concluded

Keeping in view the strong and rapid growth pattern in the microfinance sector and the competitive lending environment, CSD organized a three day training program titled "Training on Risk Management in Microfinance" from March 11-13, 2018 (Falgun 27-29, 2074) at its training Hall in Kathmandu.

The main objective of the training was to help participating institutions develop and improve the quality of their own risk management processes and have a focus on problem prevention and early problem identification and control. In addition, the 3 day training program was designed as to provide participants with guidelines for establishing, operational activities that will assist individual MFI to identify its area of vulnerabilities, design and implement controls and also monitor the effectiveness of those controls.

The training sessions were facilitated by prominent facilitators - all microfinance practitioners; helped enlighten the participants on importance and procedures to lower the risk through their own experience as well the best practices in the world. They discussed about the risk associated in every levels of organization; through experience sharing as well practical exercise and case studies as well the visual means so they can envision from a real world perspective and increase knowledge conversions. Identification of major risks associated with MFIs and internalization of common risk mitigating approaches and guidelines for implementing risk management plan; developing measures to mitigate identified risks through effective risk management plan were the major theme of these training session. The training session were further reinforced by a session on "Roles and Responsibilities of Risk Management Committee and NRB directives on Risk Management", facilitated by Mr. Narayan Poudel, the Executive Director of Central Bank to make participants well informed about the common risks in Nepal's Microfinance sector and the statutory requirement to mitigate those.

The three day long training session was concluded with an open discussion on the current challenges in sector from the perspective of Risk Management with the participants by the Chairman of CSD Mr. Shankar Man Shrestha and requested all the participants to adhere to the fundamental principles of microfinance for its sustainability in the present situation.

During the valedictory session, Mr. Satish Shrestha - Training coordinator highlighted the importance of training in the situation where there is a lot of pressure on the MFI's Risk Managers to take on more responsibility managing their risk exposure like never before and that the training will certainly help the participant and their organization to bring these challenges to acceptable level by timely action.

Similarly, speaking during the session, Chief Executive of CSD Mr. Bechan Giri, asked participants not to deviate from the core microfinance objectives and further added "Avoiding risk management is basically inviting risk; every process in a bank is a part of risk management". He then distributed the certificate to participants and thanked them for their effort and active participation. He also urged the participants to manage risk from ground to top level and that every employee should be concern about various risks that exist in their job and also emphasis that know about it.

The training program had a total of 24 Senior Managers as participants from 18 different MFIs.

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