EP delivered Risk Management TA to Addis Capital Goods Finance

Enterprise Partners (EP) was organised a two-day training programme on March 20 and 21, 2019 at the Intercontinental Hotel. As part of EP’s support in providing technical assistance to financial institutions, the training was given to risk and finance personnel’s from Addis Capital Goods Finance S.C. The objectives of the training were to introduce the concepts of risk management in leasing, discuss the risk management framework, identify risks inherent in leasing by putting practical examples.

The training was aimed at identifying the major steps of risk management and relating it to the practical cases of leasing business in Ethiopia. The participants were able to differentiate the major types of risks which have a high financial impact to their business and learned a framework of managing and mitigating those risks using ATRAC model. Furthermore, as Financial Institutions in Ethiopia are transitioning to the adoption of IFRS, one of the major topics covered in this training was accounting treatment in leasing business from both lessors and lessees perspectives. This helped in identifying the difference between IAS 17 and IFRS 16 which becomes into effect since January 2019.