Lack of effective risk management strategy, scourge of financial companies, according to an expert


François Ndubuisi in Abuja

The Executive Chairman / Managing Director of Capitis Thrift & Credit Ltd, Mr. Peter Adejoh, attributed the failure of many finance and investment firms to the lack of an effective risk management strategy.

Adejoh, who said this at the annual year-end event to reward loyal customers of the diverse credit union society and members of the cooperative society, noted that any investment firm with a great appetite for the risk was doomed to encounter problems if the proper risk management mechanism was lacking.

He stressed that there is also a need to take into account the company’s cash flow by creating a buffer for rainy days by constantly building up a reserve to meet the obligations of clients and investors, as well as generate profits for shareholders.

According to him, Capitis always studies the economics and current market trends to guide investment decisions, focus on what needs to be done to reduce costs and maximize profits, as well as to assess the mood of the market in the future. terms of demand and supply.

Adejoh added that customer satisfaction remains the company’s top priority, although he noted that as an organization that thrives on savings and loans, Captis places great importance on borrowers responding. to minimum loan criteria while providing appropriate documentation at all times.

This, he added, helps mitigate defaults and reduce the non-performing loan (NPL) ratio to the bare minimum.

Adejoh said the company, which started operations in June 2019, has grown its membership and customer base to over 6,000, covering various platforms inside and outside the Territory of the federal capital (FCT).

He also said plans were in place to further expand the coverage areas in 2022 to reach more people at the base.

According to him, the company has also helped its members’ businesses grow through loans and business support, adding that milestones the company recorded in 2021 include the successful launch of its Series A funding round. which has raised more than 360 million naira and acquired a microfinance. bank which is expected to begin commercial activities in January 2022 following the completion of pre-opening processes with the Central Bank of Nigeria (CBN).

According to him, this demonstrates Captis’ commitment to creating value for its members, investors and shareholders.


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