Course Modules

Module 1: Overview of Risk in Microfinance

• Types of risks: credit, liquidity, market, operational, reputational, legal, and strategic

• Causes and early warning signs of institutional risk

• Understanding the impact of poor risk management on MFIs

• Risk appetite and tolerance definitions

• Case Study: Analyzing a microfinance institution collapse due to inadequate risk controls

Module 2: Building Risk Management Frameworks

• Components of a comprehensive risk management framework

• Risk identification, assessment, and prioritization methods

• Risk mapping and heat matrix analysis

• Integrating risk management into institutional strategy

• Workshop: Developing a risk register for a sample MFI

Module 3: Regulatory Compliance Essentials

• Overview of microfinance regulatory frameworks (local and international)

• Key compliance areas: AML, KYC, consumer protection, data privacy

• Reporting obligations to regulators and donors

• Penalties for non-compliance and legal implications

• Exercise: Drafting a compliance checklist for an MFI

Module 4: Internal Controls and Audit Practices

• Designing effective internal control systems

• Fraud detection, prevention, and investigation

• Role of internal audits in maintaining compliance

• Audit reporting techniques and documentation

• Case Study: Lessons from a regulatory penalty imposed on an MFI

Module 5: Integrating Risk and Compliance with Institutional Strategy

• Building a risk-aware organizational culture

• Aligning risk and compliance plans with growth objectives

• Developing risk communication and reporting lines

• Key risk and compliance performance indicators

• Simulation: Preparing a comprehensive compliance improvement plan