Risk Management in Agriculture for MFIs

Risk Management in Agriculture for MFIs

RM-in-Agri-Photo-220px-right-sidebar.jpgTuesday 14 October 2014

A training-workshop on Risk Management in Agriculture was organized by Oikocredit SEA in Manila last July 7 to 9. The risk management workshop was designed for the growing number of MFIs and cooperative partners that have branched out into micro agri-lending to better serve their rural disadvantaged/farmer clients. The training aimed to help build partners’ capacity to manage risks in agri-lending and improve the quality of their agriculture portfolio.

The training was designed and conducted by Drs. Eduardo Morato Jr. and Levi Verora of Bayan Academy, a center for entrepreneurship and human resource development. Thirty participants from 16 partner MFI and cooperatives attended. Dr. Morato used the value chain framework to show where values created at each chain of an agriculture commodity can be destroyed. Risk mitigation measures, he said, can then be put in place to avert or minimize value destruction.

Bayan Academy used two case studies of Oikocredit partners Paglaum Multi-Purpose Cooperative and Parfund to help participants analyze risks and draw insights on how and what risk mitigation measures need to be put in place.

Oikocredit will provide technical post-training support to selected partners. Five partners have been offered further mentoring in risk mapping and business continuity preparation.

In July and September 2013, a risk management workshop-training was designed and conducted for Oikocredit Philippines’ social enterprise partners. Six partners were assisted in developing their value chain as well as risk mitigation maps.

For more information on the training-workshop or follow-up, please e-mail mjuanito@oikocredit.org

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