Banks go into business to create value. They must manage risk while improving productivity, performance and profitability. Providing credit to customers can put customer deposits and shareholder investment at risk. Good credit risk management is vital, and yet efforts made by banks to train their credit risk teams vary enormously.
FSD Africa commissioned the Internationale Projekt Consult GmbH to carry out a market study to assess the prevailing supply and demand of credit risk management training within the financial sector of three different markets: Ghana, the DRC and Kenya.
The study found that training is not well organised in most of the institutions and the focus of training (as well as training budget allocation) is on intermediate and advanced levels. Training needs assessments are not systematically carried out, with a reliance on self-assessment by employees. Most of the needs cited by the FIs are therefore reactive measures to remedy the problems the interviewees see as most pressing, such as rising portfolio at risk.
FIs seek external training but have difficulty finding suitable courses with quality content tailored to the local context and their needs. Institutions stated that when selecting a training provider there is no emphasis on formal certification at any staff level.