NDIC holds sensitization workshop for Microfinance Banks‎ on risk mgt.

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NDIC holds sensitization workshop for Microfinance Banks‎ on risk mgt.

By; AMOS MATHEW, Kaduna.
The Nigeria Deposit Insurance Corporation (NDIC) in Kaduna held a one-day sensitization workshop for Micro Finance Banks (MFBs) sub-sector on ‎risk management as part of measures that to ensure the survival of the financial institutions.
In his address while declaring the workshop with the theme; “Deepening the practice of Microfinance Banking through Effective Enterprise Risk Management” open, the Managing Director, ‎Alhaji Umaru Ibrahim represented by the Director Special insured Institutions Department, Mr. Joshua James Etopidiok said, enterprise risk management creates opportunities for identifying, measuring, monitoring and controlling threats, uncertainty and taking advantages of business opportunities.
He noted that it is imperative that MFBs and risk owners embrace and implement sound risk management if they are to continue operating.
The Managing Director stressed that MFBs must be aware that risk management is a continuous process which should have its own champions within the organizations. He identified the advantages to include;‎ “eligibility factor to access the MSMEs fund of N220 billion for lending and provision of financial advisory services, effective risk management implementation, assist MFBs to respond to risk, guarantees lenders, depositors and other stakeholders peace of mind in the period of rapid changes and promotes profitability among others.
“MFBs should be interested in enhanced risk management standards because their loan portfolios are on a variable rate and therefore sensitive to Monetary Policy Rate (MPR) fluctuations.
“NDIC has always placed a great importance on the design, development and implementation of sound risk management practices, the Corporation through the risk-based supervision of MFBs and off-site surveillance continued to ensure that MFBs are conducting their businesses in safe and sound standards” he explained.
He stressed however that the ability of the Corporation to sustain its efforts in ensuring that all insured institutions are put on the path of sustainable growth and development, depends largely on the Premium contribution by all the insured institutions to fund the Special Insured Institution Fund (SIIF).

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