Risk Management Projects Development of Risk Management Guidelines for Credit Unions in Kenya

Projects

  • Development of Risk Management Guidelines for Credit Unions in Kenya

    MicroSave was commissioned to develop regulatory guidelines and supervisory framework for Sacco Societies Regulatory Authority (SASRA) to issue to regulated deposit taking SACCOs in developing and implementing SACCO enterprises risk management frameworks. The guidelines covered governance, strategic, credit, operational, liquidity, interest rate, compliance and business continuity risks. MicroSave team was responsible for: reviewing risk management guidelines issued by Central Bank of Kenya for banks, and risk management guidelines issued in other national jurisdictions for banks and non-bank financial institutions and determining aspects to adapt for the Kenyan Saccos (credit unions); conducting onsite surveys with large, medium and small sized Saccos to determine the differentiated risk management structures and practices for the risk management guidelines; prepare initial draft guidelines on risk governance and structures and the  management strategic, credit, operational risk management, liquidity, interest rate, foreign exchange, and  compliance risks; discuss review points on each section of the draft risk management guidelines with SASRA’s institutional supervision technical team; revising and finalising the risk management guidelines based on comments received from SASRA and the regulated credit unions.

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