[email protected] risk in microfinance coaching at the national microfinance bank, jordan yves...
TRANSCRIPT
[email protected] www.e-mfp.eu
Risk in Microfinance Coaching at the National Microfinance Bank, Jordan
Yves MathieuConsultant
[email protected] www.e-mfp.eu
Risk Management – Excellence in Microfinance Workshop – Past Story Board
2006 – European Microfinance WeekWorkshop "Challenges for MFIs in Risk Management"
Needs analysis with a limited survey sent to 7 major MFIs Results
Organization and training Implementation
Workshop, with the first edition in 2008, supported by ATTF, ADA and PRiM (the 5th edition is currently running)
Coaching process with remote assistance, with 6 MFIs selected after the 2008 workshop, with 2 MFIs from Jordan
[email protected] www.e-mfp.eu
Alwatani - National Microfinance Bank
Alwatani NMB was established on 15/7/2004 Social objective Alwatani has a strong official support (Royal family) 30 000 + active borrowers Gender : 92% female customers 16 mlns EUR gross loan portfolio Average loan : 550 EUR
[email protected] www.e-mfp.eu
Objective of the first mission in 2009
To Set up an effective risk management structure with authority and appropriate notification structure; which includes: Establishing an independent risk management function
reporting directly to senior management Empowering professionals with appropriate skills to
perform their required duties Installing systems capable of measuring, managing and
reporting risks in a timely and accurate manner After the visit, NMB started a risk function and established risk
team consisted from key risk persons
[email protected] www.e-mfp.eu
Second visit in 2010
NMB was guided to the best practices in setting and applying the risk policies and spreading the risk culture
Visit helped to decide the allocation of Risk dept in the organizational structure and define the communication channels, responsibilities, roles …
Formulating the risk committee Segregation between risk and credit risk functions Guiding to new risk areas such as risks related to staff
satisfaction, reputation risks…
[email protected] www.e-mfp.eu
Lessons learned
Generally speaking, confusion of concepts Risk and audit Risk and strategy Risk and governance
Weak “real” awareness, just formal statements, about risk management if main consequences are not clearly explained
Concrete risk management is a pure management decision, even if the institution is small – Importance of adequate resource allocation
Communication is important Keep it simple
