The Corporate Governance and Risk Management Handbook for Microfinance Institutions in the Arab World
This toolkit outlines an appropriate framework for the governance of MFIs. It offers definitions and examples of effective corporate governance as well as a framework for developing good business practices. It supports senior management at MFIs in enhancing their decision-making processes and prepares them to tackle crises more efficiently. It provides practical tools to help MFIs better understand the role each stakeholder plays in the institution and helps evaluate their corporate governance practices. The toolkit also identifies the risks that MFIs face, explores ways to measure or evaluate those risks, and suggests how MFIs could address them by setting up a strong and effective internal control system. It covers the following sections in detail:
- Matrix for evaluating the governance of an MFI;
- Legal forms of MFIs in Middle East and North Africa;
- Key stakeholders involved in making strategic and operational decisions;
- Efficient decision-making and crisis management process;
- Definitions of terminology related to risk management;
- Identification and measurement of MFI risks;
- Addressing risks through internal control systems;
- Evaluation of internal control systems through the internal audit function.