Financial Sector Deepening Africa (FSDA) contracted IPC to conduct a market scoping study in three countries (DR Congo, Ghana, Kenya) to assess demand among credit service providers for training on risk management practices. Through this project, FSDA aims to determine the market demand for risk management training and also identify certifying and accrediting risk management training institutions and local training service providers. Furthermore, based on the three market assessments, a design will be drafted for a private sector-led, “high-level” business model which will run on a sustainable basis in the long term.

IPC’s experts implemented the following tasks:

• conducting an analysis of macroeconomic and financial sector trends
• sector mapping of: financial institutions (number, size, staff) and their risk management practices (RM department, internal audit, etc.), as well as training providers and the courses they offer
• holding expert interviews to assess credit providers: current staff training practices for risk management, modes of learning and curriculums
• conducting expert interviews to assess the demand for training on risk management (type, quantity, etc.) and priority areas of credit providers
• identifying providers of risk management training and conducting high-level due diligence to assess market acceptability and rating of trainings provided, including whether the training is industry recognised or bespoke for particular credit providers

• evaluating existing risk management trainings and potential linkages to local, regional or international accreditation schemes or other risk management examining bodies/institutions
• measuring the appraisal of local, regional or internationally examined and certified risk management training by financial institutions and trainees
• drafting a market assessment report detailing the nature of demand for the three countries: list of potential “buyers”, estimated market size, estimated fee per trainee, potential local training service providers and market prospects for training certifying organisations
• developing a business model and recommendations on training modules offered in each country
• developing a high-level, private sector-led business model beneficial to all stakeholders and sustainable within a realistic timeframe without FSDA funding
• writing the study report, including business models for risk management training programmes in each country, showing optimal price points and break-even analysis
• presenting final results in a workshop with FSDA in Nairobi