MICROFINANCE PAPER WRAP-UP: “Guidance Note, Business Continuity: Attention Points for Business Continuity for MFIs in View of the COVID-19 Outbreak,” published by ADA

By Hans Hekkenberg et al, published by ADA (Appui au Développement Autonome), March 2020, 20 pages, available at http://www.ada-microfinance.org/download/6423/guidance-note-bc-march2020.pdf

This document lists areas of concern for microfinance institutions (MFIs) regarding their crisis management related to the COVID-19 pandemic. Its objective is to support MFIs with practical advice for preparing business continuity plans to tackle the adverse effects of the pandemic.

The first part of the note offers the following advice: (1) establish a cross-functional crisis committee responsible for overall coordination and communication related to business management during the pandemic; (2) categorize business activities as critical and non-critical, and re-allocate resources accordingly; (3) categorize stakeholders by their level of influence, risk, and current and potential levels of support; (4) analyse measures that can limit adverse impacts – both financial and non-financial; and (5) assess and manage liquidity through measures such as stress testing and preparing a liquidity gap report.

The second part of the guidance note addresses the following elements of the crisis management and business continuity plan: (1) staff; (2) business; (3) access to the office; (4) resources; (5) policies; (6) clients; and (7) other external stakeholders, including funders, regulators and trade associations.

An appendix to the document offers suggestions for MFI staff and the general public.

Sources and Additional Resources

ADA material on COVID-19 pandemic
https://www.ada-microfinance.org/en/covid-19-crisis

ADA homepage
https://www.ada-microfinance.org

More MicroCapital coverage of COVID-19
https://www.microcapital.org/?s=covid

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