IFC Helps Improve Risk Management at Armenian Banks

IFC, a member of the World Bank Group, is helping Armenian banks to improve risk management procedures, boosting stability in the financial system in the wake of the economic downturn.

IFC, in cooperation with the Financial Banking College Foundation, today is holding a workshop in Yerevan to increase local bankers’ knowledge of crisis mitigation strategies and risk avoidance. Along with IFC, experts from the International Institute for Management Development, a top business school, will share their first-hand experience of best-practice board action in crisis conditions.

About 20 board members from Armenian banks and credit organizations and several representatives from the Central Bank and the Armenian government will participate in the workshop.

“We welcome and value our cooperation with IFC,” said Armen Saroyan, Executive Director of the Financial Banking College Foundation. “Its experts are helping participants develop the necessary skills to prevent crises and better perform their duties in case of future economic turmoil.”

The workshop is part of IFC’s effort to bring its international knowledge and experience in risk management to Armenia. In light of the recent crisis, IFC has expanded and refocused its advisory services to address the immediate needs of financial institutions in emerging markets like Armenia. To date, IFC has conducted 11 training events for board members worldwide, most of which were in Europe and Central Asia.

Thomas Lubeck, IFC Regional Head, Caucasus, said, “It is crucial that top managers are able to make quick, professional, and informed decisions that can positively influence the operations of financial institutions. To address this challenge, IFC is delivering training programs to share knowledge on risk management and strengthen boards.”

IFC has been investing in Armenia since 2000, supporting financial institutions, small retailers, and the hotel and other industries. IFC also has implemented advisory projects to strengthen the financial sector, establish a sustainable market for energy efficiency and renewable energy investments, and improve the country’s business environment.