Social Impact Bonds (SIBs) represent a groundbreaking approach to financing social programs, connecting private investment to measurable social outcomes. In a SIB model, a private investor provides upfront funding for a social program, and a government or a third-party pays back the investors with a return only if the program achieves its pre-defined results. This unique structure shifts the risk of a non-performance from the public sector to the investor, creating a strong incentive for a program success. However, this innovative financing mechanism introduces a complex set of financial, operational, and a social risks that a traditional risk assessment model is not prepared to address.

This training program is meticulously designed to provide a comprehensive understanding of a risk evaluation in a SIB ecosystem. You will learn to move beyond a conventional financial analysis and develop a robust framework that integrates a social outcome data into your analysis. The curriculum covers everything from an innovative data collection strategy to the role of a machine learning and its associated risks. By the end of this course, you will be equipped to identify, measure, and mitigate a risk in a SIB ecosystem, helping your organization to make a sound financial decision while contributing to a positive social impact.

Duration: 10 days

Target Audience:

• Banking and financial professionals
• Risk and credit analysts
• Data scientists and modelers
• Product managers in a social finance
• Professionals from public and private sectors engaged in a social impact
• Consultants specializing in a social finance
• Anyone interested in the intersection of a finance and a social impact

Objectives:

• Understand the core concepts of a SIB and its unique risk profile
• Learn to identify and quantify a financial and a non-financial risks
• Master the principles of an integrated risk management framework for a SIB
• Gain proficiency in applying specialized risk assessment techniques
• Understand and mitigate the risks of a data privacy and its implications
• Learn to navigate the regulatory and reporting requirements for a SIB
• Develop skills in communicating and reporting on a social risk
• Prepare for a future change in a data and its impact on a risk
• Implement a continuous monitoring system for a SIB
• Learn to use a data and an analytics for a more accurate risk assessment

Course Modules:

Module 1: Foundations of a Social Impact Bonds

• The history and evolution of a SIB
• The different types of a SIB
• The unique risk profile of a SIB
• The key stakeholders in a SIB
• The importance of a clear and a consistent definition of "social impact"

Module 2: The Role of a Government

• The importance of a government partnership
• The role of a government in a social policy
• The challenges of a government bureaucracy
• The importance of a clear and a consistent policy
• The impact of a political risk

Module 3: The Role of a Service Provider

• The importance of a service provider
• The role of a service provider in a social program
• The challenges of a program implementation
• The importance of a clear and a consistent service delivery
• The impact of a performance risk

Module 4: The Role of an Investor

• The importance of an investor
• The role of an investor in a social program
• The challenges of an investment risk
• The importance of a clear and a consistent return on investment
• The impact of a market risk

Module 5: The Role of a Data and an Analytics

• The importance of a data-driven approach
• The use of a behavioral segmentation
• The role of a outcome measurement
• The importance of a continuous monitoring
• The challenges of a data availability and a reliability

Module 6: The Role of a Machine Learning

• The importance of a machine learning
• The role of a supervised and an unsupervised learning
• The challenges of an explainable AI
• The importance of a model interpretability
• The impact of a machine learning on a model performance

Module 7: The Use of a Financial Modeling

• The importance of a financial model
• The role of a discounted cash flow
• The challenges of a valuation
• The importance of a clear and a consistent assumption
• The impact of a model on a business decision

Module 8: The Use of a Legal and a Regulatory Framework

• The importance of a legal agreement
• The role of a regulatory compliance
• The challenges of a cross-border regulation
• The importance of a clear and a transparent reporting
• The risks of a non-compliance and a penalties

Module 9: The Role of a Cross-Functional Team

• The importance of a collaboration between a data science and a social worker
• The role of a communication and a feedback
• The challenges of a different goal
• The importance of a clear and a consistent process
• The impact of a team on a project success

Module 10: The Use of a Social and a Environmental Risk

• The importance of a social risk
• The use of a reputational risk
• The role of an environmental risk
• The importance of a clear and a consistent risk assessment
• The impact of a social and a environmental risk

Module 11: Stress Testing and Scenario Analysis

• The importance of a stress test
• The use of a hypothetical and a historical scenarios
• The role of a reverse stress test
• The importance of a clear and an actionable result
• The challenges of communicating stress test results to stakeholders

Module 12: The Use of a New Data Source

• The importance of a social media data
• The role of a geospatial data
• The challenges of a satellite imagery
• The importance of a new data source
• The impact of a data source on a risk

Module 13: The Use of an Innovative Financial Instrument

• The importance of a microcredit
• The role of a digital loan
• The challenges of a buy now, pay later
• The importance of a mobile banking
• The impact of a new product on a risk

Module 14: Case Studies and Best Practices

• A deep dive into successful SIB projects
• The challenges of a real-world implementation
• The importance of a strong cross-functional team
• The role of a leadership in adopting a data-driven culture
• Lessons learned from the field

Module 15: Final Project and Discussion

• A hands-on project to build a SIB risk framework
• The role of a new technology (e.g., blockchain)
• The future of a SIB
• The importance of a continuous learning mindset
• A final discussion on a remaining challenge and an opportunity

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.