The deafening absence of loan and risk management practices in most sectors of the economy, particularly as far as SMEs are concerned, is worrying, Sulley Adam-President of the Institute of Loan and Risk Management, Ghana, has said.

“Not much risk management is done in the SME sector. When you hear about risk management it is mostly in corporate industries. With the exception of the banking and insurance sectors, almost all the other sectors have left the issue of risk management to gather dust,” he said.

Mr. Sulley made these comments in Accra at an event where his outfit signed a memorandum of understanding (MoU) with its parent body - the Council of Chartered Institutes of Loan and Risk Management of Nigeria.

Per the agreement, the Institute of Loan and Risk Management, Ghana - as the affiliate institution - will be engaged with training Ghanaians in loan and risk management, and at the same time serve as a platform for professionals to continuously develop themselves.

“It is very necessary that every relationship is guided by certain principles; and since they are the parent body and we the affiliate body, it is proper that we have a document that guides our relationship. A document that binds us together.

“The agreement will also help us to link up with industry to ensure that risk management is given attention, because loan and risk management cut across all the sectors in the country; and it is part of one of our goals to ensure that it happens,” Adam Sulley added.

The institute has been operating in the country since last year and currently has 306 members.

Dr. H.N. Akubuiro, Vice President of the Council of Chartered Institutes of Loans and Risk Management, Nigeria, noted that: “The issue of risk management is not being handled well in Nigeria and Ghana. So we want to give people professional qualifications in that area.

“We want to promote professionalism in risk management, and with our Ghanaian partners we will be concentrating on training, education and empowerment, so that people will be current with how to manage risk,” he said.

Dr. Akubuiro added that it is important for businesses of all kinds to incorporate loan and risk management in their operations, as it will prevent them from getting into trouble from foreseeable risks.

“There is risk everywhere; in the home, kitchen and everywhere. We have offices in every state of Nigeria, and we are now beginning to make gains. That is why we deemed it important to expand and help our neighbouring countries to grow the sector and help prevent some of the common risks confronting businesses.”