Microfinance
Openspace
By the end of 2008, together with RMSF, Pamiga and Crédit Coopératif, ELSEWARE lauched project Openspace. The project targets microfinance risk management. It will contribute to safer and more stable growth management in this area.
Openspace has been developed with worldwide microfinance institutions (MFI) in mind. It can offer them a prospective analysis tool for their risks. Openspace makes use of a quantitative approach to risks, in that respect similar to Basel II, but different in that risks are decompartmentalized. Openspace hence tackles strategic, financial and operational risks from a unified perspective.
Strategic risk management
Elseware can help microfinance institutions deal with strategic risk management.
The goal of this approach is to identify strategic, financial, and operational risks and build appropriate models accordingly. Several steps are necessary :
- Risk mapping and major risks identification
- Scenarii analysis
- Modelling, quantification
- Recommendation for action.
Operational risk management
Mature enough and large enough MFIs (Tier 1 & Tier 2) now express strong expectations in terms of operational risk management :
- Setting up risk management role
- Risk management at the operational level
- Risk indicators definition and control.
Elseware can make its experience available to those institutions for that type of missions.
We believe the two axes – strategic management and operational management – cannot be dissociated. Risk mitigation (hence operational management) must be related with the major identified risks.