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Training & Capacity Building : Microfinance Courses |
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| Course VI: Improving Operating Efficiencies in MFIs (EDA module) |
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Course Abstract
In order to be sustainable MFIs need to ensure that they do not pass on their inefficiencies to their clients. The operating cost structure of an organization is reflective of its efficiency. The operating costs of the organization stem from various factors such as its organization structure, its area of operation, scale of operations, its credit delivery mechanism (or model), its loan products and investment in infrastructure and systems. These factors differ from one organization to another on account of their genesis, age and nature of operations. However, these factors do not exist in isolation and the impact on costs is a function of interrelationships between them. This course through exercises , group activities and case study analysis imparts understanding and skills to the participants to identify the origin of their operating costs to enable them to be cost effective and efficient.
Course Objectives
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Understanding Elements of Operating Costs |
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Calculating Operating Cost Indicators |
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Governance and Institutional factors affecting costs |
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Operating Methodology and Costs |
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Products and Costs |
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Information Systems and Costs |
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Transforming MFIs by analyzing Operating Cost Indicators |
Course Length: 3 days |
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| Course VII: Management Information System forMicrofinance Institutions (CGAP module) |
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Course Abstract
Microfinance, like all other forms of finance, is an information business. Yet many microfinance institutions (MFIs) face serious challenges as they seek to identify their information needs and install appropriate systems to meet those needs. This 4-day course is a basic course on helping MFIs in capturing and consolidating information for their operations. The focus of this module will be collecting and collating the right information for decision-making, highlighting the interfaces within the subsystems along with in-built mechanisms of internal control. The course will also deal with computerizing the MIS. By working through a case study, participants learn to use a framework that allows them to conceptualize, assess, design, develop, implement, roll out and maintain information systems for their MFIs.
Course Objectives
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Data, information and systems |
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Client Sub-System - formats for capturing data and using information for decision making |
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Portfolio/Deposit-tracking/Accounting/Human resource Sub-System - formats for capturing data and using information for decision making |
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Interface of all systems |
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Developing institutional action plans |
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Project preparation - systems development life cycle |
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Information needs analysis |
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Business process analysis |
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Selection and evaluation of software |
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Implementation of an MIS |
Course Length: 5 days |
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VIII: Planning with Microfin: A course in financial projections (CGAP module) |
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Course Abstract
This five-day course guides participants through the process of strategic and operational planning and to develop the financial planning skills necessary to the long-term health of an MFI. The greater part of the course focuses on using the Microfin financial projections model, an Excel-based business modeling tool specifically designed for MFIs. A detailed case study gives participants practice applying strategic and operational planning principles with Microfin through a detailed case study and an opportunity to analyze the key factors for sustainability.
Course Objectives
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Introduction to business planning |
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Strategic planning for using Microfin |
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Operational planning and financial modeling |
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Model setup and designing financial products - portfolio and institutional capacity projections |
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Financing strategy |
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Putting it all together – financial statements/analysis |
Course Length: 5 days |
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IX: Operational Risk Management for Microfinance Institutions (CGAP module) |
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Course Abstract
This four-day course helps microfinance institutions develop and improve the quality of their own risk management processes and focuses on problem prevention and early problem identification and control. Participants are provided with guidelines for establishing operational activities that assist an MFI to identify its vulnerabilities, design and implement controls and monitor the effectiveness of controls. Through exercises, group discussions and case studies, participants review concepts such as internal controls. fraud, and internal and external audit.
Course Objectives
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Introduction to risk management |
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Institutional risk |
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Preventive controls |
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Business cycles to identifying risk areas |
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The internal audit function |
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Assessing MIS of the organisation |
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Assessing Accounting System of the Organisation |
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External audits |
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Mitigating risks |
Course Length: 4 days |
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X: Internal Audit (EDA module) |
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Course Abstract
This three-day course will enable the microfinance institutions
in setting up their internal audit function. It will help the
organisation in defining the nature and scope of internal audit
and its importance in the organisation's control environment as a
fraud control measure.
Course Objectives
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Understand the various risks faced by MFIs |
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Describe various components of control environment and
distinguish between them |
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Evaluate internal checks within their organisations |
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Understand the scope and role of internal audit |
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Assess the existing organisational policies |
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Evaluate the existing MIS of the organisation |
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Formulate and conduct internal audit systems |
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Control on fraud |
Course Length: 3 days |
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| Course
XI: Social Performance Management: Translating mission into practice in microfinance |
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Course Abstract
Social Performance Management (SPM) is a systematic approach to putting mission into practice. There are targets, systems and information to keep track of financial performance. The same now applies for social performance. MFIs (leaders, boards) around the world are beginning to think about this and how to operationalise it as part of their management and reporting. The course material has been developed by the Imp-Act Consortium. The Imp-Act Consortium is a global group of organisations who have come together to promote a systematic approach for organisations to put their mission into practice. Other members of the Consortium apart from EDA are the Institute of Development Studies, University of Sussex, UK, Microfinance Centre of the Philippines (MCPI), CARD (The Philippines), Freedom from Hunger, IDEAS and the Microfinance Centre (MFC) Poland.
This four day course will walk participants through social performance management as a process of defining social objectives, identifying, collecting and using relevant information, and putting appropriate systems in place. With the help of examples of SPM in practice in different parts of the world, course participants will develop a work plan to introduce SPM in their MFI. The workshop is intended for senior managers/decision makers and personnel responsible for MIS and client-level information collection.
Course Objectives
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To provide a framework for a process of social performance management which is mission-anchored, client focused, systematic and socially responsible |
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To enable participants to apply this framework to their own organisation, including setting clear social objectives, identifying information needs and sources of information, and using information to improve operations |
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To link this process to current international initiatives around social assessment and social reporting |
Course Length: 4 days |
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| Course XI: Credit Appraisal of Microfinance Institutions: A course for Bankers (EDA module) |
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Course Abstract
This course aims need to systematically build the capacities of Bank personnel – especially the managers of rural branches - to enable them to develop a perspective on microfinance and understand the need for a customized appraisal mechanism for MFIs, in tune with the unique nature of microfinance.
Course Objectives
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Introduction to microfinance |
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Models of microfinance |
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Rationale for commercial bank finance to MFIs |
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Broad framework for appraising MFIs |
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Governance and managerial aspects |
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Financial aspects:
- formatting financial statements
- portfolio quality analysis
- profitability analysis |
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MFI appraisals - summarizing |
Course Length: 3 days |
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| Course XII: Use of a Risk Rating Instrument (EDA modules) |
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Module 1 – Use of an individual client risk rating instrument - a practical module
Module 2 – Follow up, finalisation and roll out of the implementation plan for the instrument
Course Length: 2&2 days |
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