THE IMPACT OF OPERATIONAL RISK MANAGEMENT ON THE GROWTH OF MICRO FINANCE INSTITUTIONS: CASE OF CCC plc

ABSTRACT

During our internship, we discovered that there was excess pressure on some officer at the various departments especially during busier periods. Equally it was noticed that the institution was greatly facing frequent power cuts while being in operation. Also, it was identified that at times loans were granted to customers without them providing sureties simply because they are old customers of the institution.  All this enhances operational risk in the microfinance institution and will go along to impact the growth of the microfinance institution if not managed. Therefore the study is aimed at investigating on “THE IMPACT OF OPERATIONAL RISK MANAGEMENT ON THE GROWTH OF MICROFINANCE INSTITUTIONS: CASE OF CCC plc”. The study revealed that there is operational risk in the institution caused by people, process, systems/IT failures and external events. The primary sources used in conducting this study were gotten from questionnaires, interviews and observations and the secondary sources were gotten from textbooks and past reports, notebooks and the internet. The study went further to explain the impact of operational risk on the growth of microfinance institutions, the ways the institution can identify operational risk in the Institution and the steps involved in operational risk management. The study recommendations after the difficulties identified were; a need for assistance at the various department especially during busier periods of the year, equally the institution should put in place a mechanism that will support its customer’s training program, just to name a few.