Risk Management

Through the use of highly qualified Regional Trainers, the MFX TA facility works with CFOs and Treasurers on how to quantify and analyze risk posed by different borrowing and lending strategies. The end goal of the facility is to help client institutions put in place a best-practice asset/liability management (ALM) system which can continuously monitor balance sheet risk and inform borrowing decisions. The curriculum uses specialized MFX-developed tools which allow microfinance institutions and small banks to model their business strategies and stress tests them against different economic scenarios. MFX expects to reach 40-50 MSME lenders across at least 10 countries in East, West, and Southern Africa with on-site technical assistance, mentoring, and the implementation of best practice risk management structures. With improved ALM, microfinance institutions and small banks will be better positioned to responsibly tap new sources of external funding and thereby accelerate their growth.

Product Offering

MFX offers training and TA in the following areas. Follow-on technical advice and mentoring will also be available:

 Targeted Institutional Profile

The MFX TA facility targets microfinance institutions and small banks which exhibit the following characteristics: