Governance Guide: A Tool for Analyzing the Governance of a Microfinance Institution
This document describes a tool by IRAM-CERISE that analyzes governance in MFIs.
MFIs need more than financial sustainability and compatibility with existing legal frameworks for long-term sustainability. They also need a transparent and efficient internal organization that is acceptable to all stakeholders. IRAM-CERISE’s operational guide for analyzing governance provides frameworks to help MFIs to conduct an analysis of governance and consider how to tackle recurring challenges in governance. It is based on experiences of MFIs and partner networks.
The main purpose of the tool is to improve the efficiency of the MFI's activities and to improve consistency between its mission and actions. It can also be useful in:
- Internal evaluation by MFIs who can use it independently to guide their strategy;
- Training to improve microfinance stakeholders' ability to conduct analyses of governance;
- Designing and putting in place processes that ensure consistency between various aspects of its social mission and its activities.