The Executive Chairman, Capitis Thrift & Credit Company, Mr Peter Adejoh, has said lack of an efficient risk management strategy is taking many finance and investment companies out of business.

Speaking to Daily Trust on Saturday during the annual end of year event to reward loyal customers and members of the Cooperative, he said any investment company which has huge appetite for risk was bound to run into problems if the right risk management mechanism was not put in place.

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He stressed that one needs to take into consideration the cash flow of the business, create a buffer for rainy days and investors’ obligations as well as generate profit for shareholders.

For Capitis, he said the company always study the economy and current market trends to guard investment decisions; focus on what needs to be done to cut cost and maximise profit and as well gauge the mood of the market in terms of demand and supply.

He said customers satisfaction was the priority of the company.

Adejoh also noted that, as a company that thrives on savings and loans, it places a high premium on ensuring that borrowers meet minimum lending criteria and proper documentation was done at all times, adding that it helps to mitigate default and reduce Non-Performing Loan (NPL) ratio to the barest minimum.

Adejoh said the company, which started about two years ago, had grown its membership and customer base to over 6,000, cutting across various platforms within and outside the FCT.

He said that plans were in place to expand its coverage areas next year to reach out to more people at the grassroots.

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