State of the art E&S Risk Management for Financial Institutions

Course Info

  • Estimated duration: 2 hours 30 minutes
Enroll into Course

Course Overview

The course provides basic knowledge on E&S risk management in financial institutions, and its evolution as a megatrend. Participants will receive an overview of good industry practices, an introduction to IFC Performance Standards, and practical guidance and tips for how to convince your customers, as well as case studies

About This Course

This really is the “bread and butter” training course covering all relevant issues that forward-looking banks should take into account. The course is very practical and focuses on those issues that typically tend to go wrong or at least become difficult. It gives a brief introduction to E&S standards for financial institutions, and includes a short overview of the 8 IFC Performance Standards, related guiding questions and case studies.

The course explains the necessary components of an E&S management system and the necessary individual process steps, including E&S screening, E&S due diligence, credit/investment review, inclusion of E&S terms and conditions, and client E&S reporting and monitoring. All of these steps are explained in detail and examples are provided. It can be assumed that when the suggested steps are successfully followed, the E&S related requirements of European Development Financing Institutions (EDFIs) including KfW and DEG will be met. The course then briefly covers important aspects such as “convincing your customer”, as well as ESMS case studies and the lessons learnt from these specific situations.

This course provides a foundation for the “E&S Risk Management Toolkit for Financial Institutions” on this e-learning platform. Once trainees have successfully completed the course, they are encouraged to start with ESMS development and upgrading in their respective organisations in general, as well as E&S risk management of individual investment projects with the help of the toolbox.

Target Group

Staff of credit and risks departments, bank E&S coordinators (non E&S professionals), E&S managers of financial institutions or Private Equity Funds, and all interested investment managers

  • Why are E&S risks of clients and the adequate management of these important for financial institutions?
  • E&S risk mitigation and introduction to banking standards: IFC Performance Standards
  • Environmental and Social Management Systems (ESMS): Process steps
  • ESMS development and related implementation barriers - introduction to “how to convince your customer”
  • Quiz
  • Certificate of attendance