Dearth of Efficient Risk Mgt Strategy, Bane of Finance Firms, Says Expert

Ndubuisi Francis in Abuja

The Executive Chairman/Chief Executive Officer, Capitis Thrift & Credit Ltd, Mr. Peter Adejoh, has attributed the failure of many finance and investment companies to the lack of efficient risk management strategy.

Adejoh, who stated this at the annual end of year event to reward loyal customers of the diversified credit union company and members of the cooperative society, noted that any investment company with huge appetite for risk was bound to run into problems if the right risk management mechanism is lacking.

He stressed that consideration should also be put into the cash flow of the business by creating a buffer for the rainy day through constant building of a reserve in order to meet customers’ and investors’ obligations, as well as generate profit for shareholders.

According to him, Capitis always studies the economy and current market trends to guide investment decisions, focus on what needs to be done to cut cost and maximise profit as well as gauge the mood of the market in terms of demand and supply.

Adejoh added that customer satisfaction remains the company’s priority, even as he noted that as an organisation, which thrives in savings and loans, Captis places a high premium on ensuring that borrowers meet minimum lending criteria while proper documentation is done at all times.

This, he added, helps to mitigate default and reduce non-performing loan (NPL) ratio to the barest minimum.

Adejoh said the company, which started business in June 2019, has grown its membership and customer base to over 6,000, cutting across various platforms within and outside the Federal Capital Territory (FCT).

He also stated that plans were in place to further expand the coverage areas in 2022 to reach out to more people at the grassroots.

According to him, the company has also helped the business of members grow through loans and business support, adding that the milestones the company recorded in 2021 include the successful floating of its Series A funding round which raised over N360 million and the acquisition of a microfinance bank which is set to commence business operations in January 2022 upon the completion of pre-opening processes with the Central Bank of Nigeria (CBN).

According to him, these were testaments to the fact that Captis is committed to creating value for its members, investors and shareholders.