Our partners often face more than financial challenges. Skill shortages, knowledge gaps or missing certifications can be obstacles to achieving financial and social goals. While Oikocredit’s core business is finance, we offer capacity building programmes so our partners can operate more efficiently and effectively.
Oikocredit provides advice and practical training which enables partners to build capacity.
Local experts deliver specialized services, which range from improving sub-standard information management systems to developing new products or providing practical training in health or business operations. Each regional office has a dedicated staff member that identifies and monitors capacity building projects in the area.
Oikocredit capacity building projects are often collaborations between Oikocredit and other funders including the Church of Sweden and ICCO. The support is available to all Oikocredit partners.
For Oikocredit, social performance management is as important as financial management. Oikocredit’s mentoring programme is designed to help microfinance partners embed client-centred approached into their daily practices.
Oikocredit uses a tailored risk management system to evaluate the three most significant areas of risk to its operations - credit, market, and liquidity risk.
To assess these factors, Oikocredit consistently monitors:
- portfolio at risk (PAR) scores
- changes in the local market
- country rating reports
- financial and social information provided by local staff
Oikocredit also trains its partners to mitigate risks through risk management training workshops help build capacity among partners. This trains partners to better recognize and manage potential threats to their operations.
In the past, microfinance institutions have mainly focused on financial challenges without acknowledging other factors. Risk management training assists organizations determine acceptable levels of risk, establish assessment mechanisms, develop risk mitigation policies and test the effectiveness of their controls.