Sustainable financial practices
According to the IFC, controlling risks and making efficient use of financial resources are crucial to remaining financially viable and maximising the impact on development. Effective risk management is essential to ensuring that IFC can carry out its mission of supporting sustainable development. Being a long-term investor in fast-growing but risky emerging economies exposes IFC to both operational and financial risks by its very nature. IFC is able to maintain its financial health and act as a countercyclical force during periods of economic and financial instability because to prudent risk management and a strong capital position. Additionally, IFC's financial stability leads to low borrowing costs, which enable the organisation to offer their clients reasonable and sustainable finance.
The IFC has a thorough approach to risk management that includes credit risk analyses and integrity due diligence for all investments, as well as strict and conservative capital adequacy utilising requirements that are more demanding than those needed to retain a triple-A credit rating.
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