Overview
The regulatory framework that applied to banks and financial institutions in the WAMU zone until 2016 was implemented by the Central Bank of West African States (BCEAO - French acronym) in 1996. However, in 20 years, the economic and financial landscape of WAMU and the world has changed profoundly. Several financial crises have occurred, and international institutions have readjusted. According to the BCEAO, "Over the past two decades, the banking environment of the West African Monetary Union (WAMU) has undergone significant transformations, marked by the diversification of credit institutions' activities and the emergence of cross-border banking groups based in the Union. These changes have generated new risks that must be identified and managed in accordance with international best practices in terms of capital adequacy".
To ensure the long-term viability of the institutions under its supervision and the safety of consumers of the West African banking system, BCEAO has updated the prudential framework applicable in the Union and issued clear risk management instructions. These instructions include exercises that financial institutions were not used to, including:
- The implementation and monitoring of a risk map
- The risk appetite framework and the management of global and operational limits
- The implementation of stress tests
- The implementation of operational risk management tools
- The implementation of an internal capital adequacy assessment process
- External assessment of the internal audit
- Implementation of a contingency plan, a preventive recovery plan, a functional business continuity plan, and other operational, market, and liquidity risk management tools.
African Lease works with excellence
Updating their existing internal control systems sometimes requires banks and financial institutions in the Union to make substantial investments in human, financial and material resources. However, hiring skilled and experienced professionals could significantly help cut those costs.
African Lease Togo is the Togolese subsidiary of a West African financial group that provides leasing, factoring and payment services. The institution has the benefit of being created after the prudential framework upgrade but is nonetheless subject to the multiple new requirements that have arisen. Therefore, the implementation of its internal control system is closely monitored by the regulator.
African Lease Togo opted to rely on Excellence to implement a fully compliant internal control system, especially on issues related to risk management. We have collaborated with their teams to define scenarios and execute portfolio and liquidity stress tests with activity impact analysis. We assisted the institution in designing its internal capital adequacy process as well as some internal information systems procedures, in revising its risk appetite and relevant limits, and in building its risk mapping relative to money laundering and the financing of terrorism.
African Lease Togo has always placed compliance at the center of its operations, thereby laying a solid foundation of governance for the succeeding generations of leaders who will inherit the institution, as well as a trusted instrument for the States, Institutions, and Organizations that use their financial services throughout the sub-region.
A relationship based on competence and trust
Excellence provides African Lease Togo with proven expertise in banking risk management. The Institution expects high quality services in line with its standing and is subject to frequent supervisor's compliance evaluations of its internal control processes. African Lease Togo has trusted us from the beginning and can rely on our promises of quality deliverables, but more importantly, quality in the execution of our missions, as well as the guarantee of a successful execution within the assigned deadlines. We are pleased to count this outstanding institution among our reference clients.
Risk management experts
Excellence's primary mission is to assist African institutions with crucial technical topics such as risk management. We are available to work with your teams to implement your Business Continuity Plan, risk mapping, your stress tests and more.
