Microfinance Focus April 8, 2011: IFC, a member of the World Bank Group, recently partnered with the Global Association of Risk Professionals (GARP) to help local banks and microfinance institutions become sustainable and offer financial products and services by strengthening their risk management capacity and practices.

The initiative is part of the IFC Azerbaijan-Central Asia Financial Markets Infrastructure Advisory Services Project and the IFC Financial Markets Crisis Management Project, funded by the governments of Austria, Switzerland, Finland and the Netherlands.

IFC and GARP will develop a risk management education and certification program to be implemented in 9 countries comprising of Armenia, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Russia, Tajikistan, Ukraine and Uzbekistan.

The program will train employees from local financial institutions, which will help reduce vulnerabilities of local institutions to future financial shocks. The training and certification will be conducted in Russian, enabling more individuals and local firms to participate. IFC will select and engage partner-organizations in each country to provide on-site trainings and review classes.  IFC risk experts will help participants identify and mitigate financial risks such as credit, market, and operational risks.

Patrick Luternauer, Business Line Leader Access to Finance Advisory Services said, “IFC is working to build the capacity of financial intermediaries in Europe and Central Asia to better manage risk.”

He added, “The collaboration between IFC, GARP and local training partners in bringing this Risk Certification Program to the region will provide risk managers and other financial professionals with an opportunity to prepare and take exams under the auspices of an internationally recognized certification program in their own countries. This should further strengthen the financial risk management culture and climate in the region.”