• The Credit Risk Officer will be responsible for managing and mitigating the risks associated with lending activities in Yehu Microfinance Services Limited – YMSL. The officer ensures YMSL adherence to regulatory requirements, assesses creditworthiness, manages portfolio quality, and minimizes the risk of loan defaults and assures organizational sustainability. The role involves business and data analysis, monitoring, and making recommendations to enhance the credit policies and procedures.

Key Responsibilities:

Credit Risk Assessment:

• Evaluate and analyze the creditworthiness of loan applicants through financial analysis, client interviews, and field visits.
• Conduct detailed risk assessments for new loan proposals and existing client loans, ensuring adherence to YMSL lending policies.
• Recommend appropriate credit limits for customers based on risk profiles.
• Loan Monitoring & Portfolio Management:
• Monitor loan performance, identify early signs of credit deterioration, and propose remedial action.
• Track the portfolio quality, ensuring non-performing loans (NPLs) are minimized and within acceptable limits – PAR > 30days – <5%.
• Regularly review the loan book and assess the risk of concentration in specific sectors, regions, or client segments.
• Rigorously interrogate causes of delinquency and initiate actions within the policy guidelines to mitigate any further deterioration of the credit portfolio quality based on classification as outlined below:
• 1-30 days 31-90 days 91-180 days More than 180 days.

Credit Policy Implementation & Development:

• Assist in the development and updating of credit risk management policies and procedures to ensure they are in line with regulatory requirements and market dynamics.
• Enforce adherence to the credit policy in the entire credit cycle.
• Recommend amendments to credit policies based on observed market trends and emerging risks.

Management of effective Credit Risk Controls:

• Evaluate the adequacy, understanding, application and effectiveness of the controls in the management of the predetermined credit risk appetites.
• Evaluation of the overall credit administration process, determine the accuracy of internal risk ratings and effectiveness of the monitoring system of the credit portfolio in general.
• Establish and enforce internal controls, operating, limits, and other practices as per the relevant policy guidelines.
• Internal audits for the credit risk processes, maintaining all records and information that will facilitate the quality of this process.
• Enforcement of the limit systems in place as per the policy guidelines.

Regulatory Compliance:

• Ensure that all credit activities comply with the regulations set by the Central Bank of Kenya and other relevant authorities.
• Prepare and submit reports to regulators, auditors, and management as required.

Risk Reporting & Documentation:

• Maintain detailed records of all credit risk assessments, decisions, and recommendations.
• Prepare regular reports on the credit risk portfolio and share insights on potential high-risk areas with senior management and Board Committees.
• Conduct stress tests and scenario analysis to evaluate the institution’s resilience to adverse conditions.
• Maintain monthly risk register in conformity to the Enterprise Risk Management Framework.

Client Relationship Management:

• Engage with clients to understand their financial standing and business conditions, offering support where necessary to manage risks effectively.
• Collaborate with the loan officers and other departments to maintain a healthy client relationship.

Training & Capacity Building:

• Provide training as well as skills impartation on credit risk management to various units assigned and the entire organization as a whole to strengthen management of a growing quality portfolio and other relevant staff on credit risk analysis and portfolio management.
• Keep the team updated on best practices in credit risk management and changes in regulatory requirements.

Qualifications:

Academic & Professional Qualifications:

• Bachelor’s degree in Finance, Economics, Accounting, or a related field.
• Professional qualifications (e.g., CPA-K, Certified Risk and Compliance Management Professional (CRCMP) or Certified Risk Manager (CRM) or Professional Risk Manager (PRM), Commercial Banking & Credit Analyst (CBCA®), Certified Credit Professional) are an added advantage.

Experience:

• Minimum of 3-5 years of experience in credit risk management, preferably in a microfinance institution, commercial bank, or financial services firm.
• Experience in the Kenyan financial sector, understanding of the MFI landscape and regulations.
• Credit underwriting experience 2.3 Technical Skills:
• Proficiency in financial analysis, credit scoring, and risk modeling.
• Strong understanding of credit risk assessment tools and methodologies.
• Familiarity with regulatory requirements, especially related to the Central Bank of Kenya’s prudential guidelines for MFIs.
• Advanced use of Microsoft Excel and other financial software.