Amret Microfinance Institution - Risk Management Framework

Risk Management Frame Work

As a leading MFI, Amret has built a strong risk management structure and culture from Board of Director to all level of staff by provide training on risk management and integrating risk control into working process. Below graphs show Amret’s risk management framework.Graps-amret's-risk-managementThe Risk Oversight Committee’s mission is to oversee all types of risks that can occur internally and externally in Amret’s business operations and activities to ensure that practices and procedures are effective for risk identification and management and in full compliance with the applicable laws and regulations.

Before each meeting of the Board of Directors, the Risk Oversight Committee members have a meeting to verify the completeness of the identified risks by each committee. Risk Oversight Committee have approved and reviewed all reports from all risk management committees- Strategic Risk Committee, Operational Risk Committee, Credit Risk Committee, and Asset and Liability Committee- at the management level on quarterly basis. Significant risks are highlighted and analyzed to the Board of Directors depending on their likelihood and impacts or prevent those outstanding risks, which are approved by the Board of Directors.

Amret also have the business continuity plan (BCP) in place in order to ensure that Amret will have enough capacity to continue the business to meet the short and long term objectives when disaster or other disruptive event occur; and to sustain customers’ confidence by maintaining a good public image. Amret’s BCP have been set with a clear framework, and policy and procedure.