1. Open for business

2. Aggregate Capital > USD 230 mln Assets > USD 780 mln Loan portfolio > AZN 380 mln

3. Target base: Banks Financial institutions Non Banking Financial institutions Leasing Companies Legal entities (mostly large corporates ) SME ( since October 2012 ) No Microfinance and individuals

4. Categories of Microfinance Risks

5. Types of Operational Risks operational riskstype of lossprimary perpetrator Credit risk From poor portfolio qualityClients Fraud riskFrom deceitStaff and clients Security riskFrom theftThird persons

6. Target base: Banks Financial institutions Non Banking Financial institutions Leasing Companies Legal entities (mostly large corporates ) SME ( since October 2012 )

7. Examples of preventive controls : Hiring trustworthy employees who can make good credit decisions Ensuring that loans are backed by appropriate collateral or collateral substitutes Segregating staff duties to prevent intentional wrongdoing Requiring authorization to prevent improper use of resources Maintaining proper record keeping procedures to deter improper transactions Installing sufficient security measures (i.e., locks, guards, safes) to protect cash and other assets

8. Reconciling bank statements with cash receipts Monitoring early warning signals for signs of pending portfolio quality problems Implementing delinquency management policies to prevent late payments from escalating into bad debts monitoring staff performance to ensure policies and procedures are followed visiting clients to ensure that their loan and saving account balances and transaction dates correspond with the MFIs records Examples of detective controls :