Assessing and mitigating financial risk is a delicate and complex art in the world of investment, infrastructure, and sustainability. Few know this more intimately than International Finance Corporation (IFC) chief compliance officer Ceri Lawley and business integrity associate Andy Guangji Xue (’18SPS, ERM).
Participating in a panel discussion hosted by the School of Professional Studies Master of Science in Enterprise Risk Management (ERM) program on “Navigating Non-Financial Risks in Multilateral Development Banks,” Lawley and Xue shared key insights with moderator Bob Kostakopoulos, Ph.D., ERM’s deputy director and a part-time lecturer in the program.
The IFC is at the heart of the World Bank Group’s central mission to reduce poverty and promote sustainable development in developing countries. It helps the group achieve its objectives by promoting private sector socioeconomic advancement in developing countries.
“The key thing about multilateral development banks,” Lawley explained, “is that they are set up under an international treaty, signed by more than one country.” In the case of the World Bank, that treaty is signed by 189 countries. “This foundation defines our mission to combat poverty, often by investing in private-sector businesses in developing nations.”
Lawley described the IFC’s unique structure, which uses what’s known as a “three lines model,” where business teams own the risk, while an internal audit ensures independent accountability and risk, and compliance staff provide oversight. This system, she emphasized, “maintains clear responsibilities while enabling appropriate decision-making at field levels.”
The three lines model is an established framework for risk management and governance. It was developed by the Institute of Internal Auditors (IIA) and is widely used in organizations including the IFC and in ERM curricula.
“When I first started exploring this field, I had three questions,” Xue said. “What business do MDBs [multilateral development banks] conduct, where does their money come from, and who are the key players in the market?” He explained how MDBs provide loans, grants, and technical assistance to support economic development in low- and middle-income countries, focusing on infrastructure, poverty reduction, and climate initiatives. They are funded through member country contributions, bond issuance, loan repayments, donor funding, and investment income.
Lawley outlined the IFC’s commitment to strong governance versus the organization’s risk appetite, noting that while the IFC maintains an overall low risk profile, it is willing to take calculated risks in fragile countries where investments can create significant social impact. “We’re conservative with hard-to-exit investments,” Lawley explained, “but we take strategic risks when the development impact is worth it.”
Beyond traditional risks like credit and liquidity, the IFC is increasingly grappling with emerging threats such as cybersecurity and artificial intelligence risks. Lawley stressed that “collaboration between specialized teams ensures these risks are actively managed.”
The session concluded with a lively Q&A where students explored practical risk management strategies and learned how IFC blends financial discipline with its humanitarian mission.
Dr. Kostakopoulos ended the panel by reflecting on the parallels between the IFC’s operations and the goals of Columbia’s ERM curriculum: “Understanding and managing risk isn’t just about minimizing threats—it’s about creating opportunities to drive sustainable growth.”
About the Program
The Master of Science in Enterprise Risk Management (ERM) program at Columbia University prepares graduates to inform better risk-reward decisions by providing a complete, robust, and integrated picture of both upside and downside volatility across an entire enterprise. For both the full-time and part-time options, students may take all their courses on Columbia’s New York City campus or choose the synchronous online class experience.
The final fall 2025 application deadline for the M.S. in ERM program is May 1, 2025. Learn more here.
