ROUND TABLE CONFERENCE ON RISK MANAGEMENT IN MFIs

Dated: 26-03-2011Crown Plaza Hotel upper Mall Lahore

Participant from NIMF:

1. Amer yousaf 2. Muhammad Waqas Afzal

Participant of other Organization:

1. Qazi Shohib Baber CEO Jinnah Welfare society (JWS) A+ Microfinance Organization.

2. Ifran Khokhar Executive director of FFO Microfinance organization3. Muhammad Murtaza CEO RCDS Multi sectoral Organization 4. Asma Rehmat Punjab Microfinance Network Coordinator5. Finance Manager, Management executive of Baidari Organization6. Representatives of Agahe7. Ramesh Singh Arora CEO of Mojaz foundation & Master Trainer.8. Finance Manager, PM of NRDP 9. Representatives of CGAP 10.Representatives of OPD

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Agenda;

Address by Qazi Shohib Babar CEO of JWS on Risk management institutional perspective and current crises of MFIs

Irfan Khokhar Executive Director of FFO will lead all themesTheme 1: Building Consensus on the Increased Need to Incorporate Risk Management

Strategies within Microfinance Providers

Theme 2: Understanding the Risk Management within Microfinance Perspective Theme 3: Transforming Organizations into institutions: A tool for Risk Management

(Members will be shared view and experience on all mentioned themes)

Theme 4: Identification of Different Tools for Risk Management

Theme 5: Strengthening Internal Controls for Risk Management

Closing remarks By Muhammad Murtaza CEO of PMFN

In this conference first of all address by CEO of JWS and told about the need of this conference and also told Objective, back ground & need of network: Global Voice Capacity building Exposure Advocacy & policy change Research, publication & Information dissemination Network Management with donors Consulting

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ALL GROWTH IN THIS UNIVERSE IS THE RESULT OF TAKING RISKS.

Risk management is the identification, assessment, and prioritization of risks.

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Institutional Risk (Mission & vision not follow)

Operational Risk (Credit risk)

Financial Risk

External Risk (Not controllable, Inflation)

Biggest Risk (Human Resources)

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To overcome these risks Organization adopt:

Good governance Quality Human resource ( Low salary people are very

dangerous , org hire low salary low qualification persons for saving the salary budget)

Value based Institutional Culture Managing the double bottom line

Different tools of risk management:

Effective governance Policies ( directions) & procedures ( how you can Implement your

policies) Systems ( MIS, FIS, HR policies , operational Systems) Implementations Strengthening of Internal Controls Implementations of Internal Audit

Characteristics of policies & Procedures

Documented, written and in written easy simple language. Availability for all Updated / compatible Reality based Right person for right job

Characteristics of Information system Accurate Timely availability Relevant ( need base) Access (according to requirement)

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Measures:

Preventive - Internal Controls

Detective & corrective ---- Internal Audit

Preventive- (Internal Control) Verification Assurance Compliance

Detective & Corrective (Internal audit)

Independent Capacity/ qualification of Internal auditor Empowerment

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