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Non-Financial Risks: Root Cause of Institutional Challenges

Hans Hekkenberg

Credit risk is often seen as the most important risk for MFIs. However, the root causes of credit risk are typically other risks, operational risks, compliance risks, reputation risks. Think of errors, fraud, unethical behavior, wrong products, MIS/IT problems, unreliable data, natural disasters, political influence…

Therefore, in order to manage credit risk, it is important to manage the so-called non-financial risks like operational risks. And, in order to manage these risks, it is important to understand the various components of non-financial risks (including legal / compliance risk and reputation risk).

It is also important to keep an eye on the expectations of the various stakeholders. For example, more and more investors expect demonstrated attention to the issue of sustainability. Not adhering to these expectations is also a risk: they can withdraw their investments or loans.

The course will how to identify non-financial root causes of risks, and how to measure and mitigate them. But also how to implement the right risk culture in order to achieve integrated risk management. Ready-to-use methods and tools will be presented that can be used in day-to-day practice. The last part of the course will involve a case study to put the acquired knowledge into practice.

Intended Audience: This course is useful for board members, senior management, risk management staff, compliance officers, auditors, regulators, representatives of MFIs going through a transition period, Investors, Consultants, etc.

To See Course Syllabus, click here

Boulder Institute of Microfinance

120 E Washington Street Suite 325
Syracuse, New York 13202, USA
+1 (315) 760-3091


Boulder Institute