Playing a key role in the reform of the Jordanian microfinance sector, the Development and Employment Fund (DEF) is considered a key partner of our MFMR programme. DEF’s organisational development efforts have started early 2015 and will continue throughout the programme time frame with the aim to transform the fund into a regional model of excellence.
Among the various interventions, DEF top management team and department heads were introduced to the concept of Risk Management and its importance for a financial institution like theirs in terms of the portfolio quality, profit and long term sustainability. Risk identification and mitigation are the responsibility of everybody within the organization. Therefore, this type of capacity building is crucial for the success of the change process planned ahead.
The session took place on 5 September 2015 at the Crowne Plaza, Amman attended by 24 key staff members representing all branches and departments. It was led by the international microfinance expert Mr. Mazen Khalife. During the session, the participants got the chance to brainstorm the various risks that face the organization, and depict potential mitigation plans that are in alignment with international best practices and the local context.
“This session opened our minds to things we were not thinking ofâ€¦ We will certainly work closely with GIZ to put the needed policies and procedures that will enable us to improve the DEF overall performance”, said Mr. Abdullah Freij, DEF’s General Director.
The discussion results will feed into the risk management policies currently being developed as part of the support in the framework of the European Union’s technical assistance programme implemented by the GIZ MFMR programme. The reform of the DEF aims strengthening its overall performance as a lender to the low-income population in targeted areas as well as to build up its wholesale capacities.
By Sahar Al-Yousef