FI Konsult works with the management of local financial institutions to understand their existing transaction appraisal processes, including the existing documentation and the roles of various staff in those processes.
This interaction results in a needs analysis identifying the gaps between existing environmental and social risk management procedures in the institution and international best practices. We then recommend the least obtrusive approach to developing, integrating, and sustaining an environmental and social risk management culture and appropriate procedures into that existing transaction appraisal process.
The nature and extent of environmental and social risk management efforts and activities should be directly related to the nature and extent of environmentally and socially derived risks associated with a particular business activity and the transaction contemplated by the financial institution.
FI Konsult recommends simple actions that the local financial institution can adopt to integrate appropriate international best practices of environmental and social risk management into their existing transaction appraisal process.
Such procedures are structured to allow non-technical staff to (i) identify and appraise environmentally and socially derived risks and opportunities in order to make an informed decision regarding a proposed transaction, (ii) remove, reduce, and manage potentially significant risks and maximize opportunities, and (iii) monitor the risk profile during the term of a transaction.
FI Konsult provides training in the value and use of environmental and social risk management in financial transactions. Training activities can focus on training line staff or training trainers.
Training sessions are conducted in small (20–24 persons) interactive groups, where teams work on video based case studies and perform various role plays designed to provide hands on experience utilizing environmental and social risk management tools to identify, appraise, manage and monitor environmentally and socially derived risks and maximize opportunities associated with the case studies.
FI Konsult specializes in identifying, analyzing and summarizing the local political, economic, legislative, and regulatory factors affecting the nature and extent of environmentally and socially derived risks in each country.
For example, updated overviews of legislative and regulatory developments enable institution staff to evaluate and predict the likely environmental and social performance (e.g., compliance) of customers and/or partners.