▪️Risk Management

This section shows the overall health of your loan portfolio. It helps you spot risks, track loan performance, and see where problems like arrears or high-risk loans may be coming from.

Risk Exposure Assessment

Metric Category & Metric Explanations

1. Portfolio Summary

• Total Loan Portfolio Value: The total value of all outstanding loans in your institution.

• Total Number of Loans: The count of all disbursed loans.

• Average Annual Loan Size: The average loan amount disbursed per year. Calculated as: Total Loan Portfolio Value ÷ Number of Loans

2. Geographic Concentration

• Branches: Shows how the loan portfolio is distributed across different branches. Branch percentage can be calculated as: (Loan portfolio in a branch ÷ Total portfolio across all branches) × 100

3. Loan Product Distribution

• Loan Products: Displays how the loan portfolio is divided among different loan types. Loan product distribution % = (Loan Product Portfolio ÷ Overall Portfolio) × 100

4. Risk Metrics

• High-Risk Loans (Above 90 Days in Arrears): Number or value of loans that haven’t been paid for over 90 days — considered high risk.

• Highest Geographic Risk: The branch with the highest number or value of overdue or problematic loans.

5. Delinquency & Arrears

• Total Principal in Arrears: The total unpaid principal amount that is overdue.

• Total Interest Arrears: The total unpaid interest amount that is overdue.

• Average Arrears Days: The average number of days loans have been in arrears.

6. Overall Health

• Portfolio at Risk Percentage (PAR%): Shows how much of your loan portfolio is at risk due to non-payment. Calculated as: (Principal + Interest in Arrears) ÷ Total Loan Portfolio × 100