The Alexandria Business Association (ABA) is classified as a non-profit foundation that develops initiatives and utilises innovative approaches to supply small and micro-enterprises (SMEs) with a line of credit to support growth and development. ABA aims to develop and promote existing small and micro enterprises to raise funds and income of SMEs, to help the transformation of SMEs from the informal sector to the formal sector, and ultimately contributing to solving and reducing the radical and chronic unemployment problem in Egypt (ABA, 2014). While small and micro enterprises constitute a substantial sector of the Eqyptian economy representing at least 40% of total industrial employment, the scarcity of credit available to micro-entrepreneurs
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Internal controls can foster errors throughout operational practices, which can often remain uncorrected. The concepts of fraud, internal control and risk management are not uncommon across the commercial banking sector and strategies have been devised to respond effectively to areas which are at risk in terms of microfinance organisational scope down to the project and program level scope. While most internal errors are representative of a minor loss of funds, collectively if such strategies and risk management plans are not fully implemented the MFI in question could stand to lose significant amounts of funding over time, thus impacting on institutional efficiency and effectiveness and future development as well as their reputation. This essay will review aspects of the ABA SME project and endeavour to develop an adequate risk management plan in response to gaps identified further taking in to consideration cost-effective measures and sustainability …show more content…
Such evaluations are infrequent and are not in-depth enough to be able to successfully reach deep enough in to organisational management, culture and to be able to analyse and assess conditions over longer periods of time or are able to continue the monitoring and evaluating phases post-implementation of a risk management plan to generate and assess whether or not the identified gaps have been addressed and to what end were they successful. This essay will specifically focus on establishing a risk management plan for the institution to internally undertake and utilise rather than a secondary
Internal controls can foster errors throughout operational practices, which can often remain uncorrected. The concepts of fraud, internal control and risk management are not uncommon across the commercial banking sector and strategies have been devised to respond effectively to areas which are at risk in terms of microfinance organisational scope down to the project and program level scope. While most internal errors are representative of a minor loss of funds, collectively if such strategies and risk management plans are not fully implemented the MFI in question could stand to lose significant amounts of funding over time, thus impacting on institutional efficiency and effectiveness and future development as well as their reputation. This essay will review aspects of the ABA SME project and endeavour to develop an adequate risk management plan in response to gaps identified further taking in to consideration cost-effective measures and sustainability …show more content…
Such evaluations are infrequent and are not in-depth enough to be able to successfully reach deep enough in to organisational management, culture and to be able to analyse and assess conditions over longer periods of time or are able to continue the monitoring and evaluating phases post-implementation of a risk management plan to generate and assess whether or not the identified gaps have been addressed and to what end were they successful. This essay will specifically focus on establishing a risk management plan for the institution to internally undertake and utilise rather than a secondary