Establishment of a Risk Management Department for Microfund for Women (MFW)

2016-10-31 - 2017-11-30

Microfund for Women (MFW) is a non-profit organization registered under the Ministry of Trade and Finance, dedicated to empowering the entrepreneurial poor, especially women, to transform their lives through their own economic activities. MFW seeks to dismantle the obstacles that prevent women from creating their own success and building better lives for their families by providing collateral-free loans to start or strengthen their own businesses. These businesses, though typically very small, enable borrowers to accumulate assets, create jobs for others and work their way out of poverty. MFW is one of the leading MFI in MENA region. The objective of the project was to design, develop and establish a comprehensive Risk Management Department (RMD) within MFW. The activity was divided into two phases, which were operated consecutively to achieve their respective goals: Phase 1: Risk Assessment – conduct a comprehensive Risk Management Assessment of MFW based on world-wide best practice; Phase 2: Establish the Risk Management Department (RMD) – design and develop RMD including all related tools and systems.
Risk Assessment Report, including risk category, key risk indicators, MFW risk tolerance, likelihood and severity, impact degree, and residual risk; Recommended Action Plan Guide GLC senior management team on the further development of SME leasing at GLC including a detailed proposal and preparatory data segmentation for the development and implementation of a scorecard. Risk Management Framework and guidelines document. RMD Policy and Procedure Manual, including mitigation and managing strategies, flow charts and process maps, market & liquidity risks, operational and credit risks, and risk management templates and forms Risk Management Administrative Manual including: RMD internal structure and structure across MFW; RMD team scope of work, titles, job descriptions, and delegations of authority (with respect to gender considerations); salary scale (in line with MFW salary scale) Design, pilot testing, implementation and training on a comprehensive credit scoring system for micro borrowers Identification of the specifications of the suitable database or knowledge management system to be developed and/or purchased to best serve the RMD’s purposes Development of a comprehensive Contingency Plan Ongoing training and mentoring of Risk Management Manager, RMD team, and MFW staff on how to implement Risk Management system.