LUV Microfinance counts with experts with a large experience in the implementation of integrated risk management systems, based on the Basel II committees guidelines. The integral risk management process phases include the identification, measurement of likelihood and impact, strategy selection, monitoring and adjustment, and reporting of the next risks:
Integrated risk management
- Credit risk: IRB Approach (Internal rating based)
- Portfolio risk: Monte Carlo Simulation approach
- Operational risk: AMA approach (advanced measurement)
- Liquidity risk: VaR approach (Value at risk)
- Market risk: VaR approach (Value at risk)
- Strategic risk: statistic performance qualification approach for areas
- Reputation risk: due diligence approach and know your customer policy
- Portfolio risk: Monte Carlo Simulation approach
- Operational risk: AMA approach (advanced measurement)
- Liquidity risk: VaR approach (Value at risk)
- Market risk: VaR approach (Value at risk)
- Strategic risk: statistic performance qualification approach for areas
- Reputation risk: due diligence approach and know your customer policy
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