Phase V
“Improving Risk Management and Financial Disclosure Systems Under a Good Corporate Governance Framework”

OVERVIEW

This project builds on the accomplishments of the first four phases of ADFIAP’s “DFIs for Corporate Governance” project www.governance-asia.com that started in 2002 and sustains the activities of the development finance sector across the region in corporate governance best practices. It is being supported by the Washington D.C.-based, Center for International Private Enterprise (CIPE).

Financial institutions have always been at the forefront of economic development of the country. With the liberalization of financial markets and access to financing, these institutions can raise capital not just from traditional, government-initiated financing programs but also from private capital. In fact, with such access to capital, governments have mandated many development financing institutions to raise capital on their own. Two new global imperatives that dominate the landscape for financial institutions as they carry out their mission are:

1. Sustainability – a mandate to manage the financial institution to achieve their objectives and grow in a sustainable manner, i.e., without risking impairment of the capacity of future generations to raise their own living standards

2. Capital adequacy – a mandate to maintain sufficient capital relative to risks being accepted by the financial institutions under a Basel II environment

The common element in these global trends is risk. Financial institutions need to manage risk of unsustainable growth and risk of capital loss even as it continues to support economic, social and environmental programs of the State. In addition, financial institutions are mandated to meet global financial reporting standards to enhance its accountability to its investors, an accountability that has expanded to include stakeholders and the public. The Seminar will present concepts and methods of risk management and financial reporting under a Basel II framework from the viewpoint of the institution and its management.

Combining traditional roles of development financing institutions with the demands of sustainability and capital risk management requires strong corporate governance at these institutions.

These challenges need to be met by the institution’s leaders and management. The seminar will present the role of the Board and each director in oversight over risk of the institution and in ensuring adequacy of capital.

OBJECTIVES

The program aims to strengthen the bank’s core business functions of risk management and proper financial disclosure by reinforcing them with strong corporate governance principles. It will also demonstrate how good corporate governance can minimize risk and improve transparency and accountability.

TARGET AUDIENCE

To equip them with new tools and best practices on the subject and to allow for an exchange of experiences among participants, the following are the target audience:

• Bank corporate officers
• risk managers
• financial analysts; and
• those involved in the in financial reporting

SCHEDULE OF ACTIVITIES

Seminar-workshops are slated to be held in cooperation with ADFIAP member-institutions in their respective countries, with the following schedules:

• August 28, 2007: National Seminar/Workshop in Port Moresby, Papua New Guinea
• January 21-25, 2008: Regional Seminar/Workshop in Manila, Philippines
• April 10-11, 2008: National Seminar/Workshop in Mumbai, India
• May 8-9, 2008: National Seminar/Workshop in Ho Chi Minh, Vietnam
• May 12-13, 2008: National Seminar/Workshop in KL, Malaysia

METHODOLOGIES

To provide a balanced mix of theory and practice in accomplishing the objectives of the different sessions, various teaching methods will be used: like lectures, discussions, exercises, case study, sharing, integration, coaching and workshops. To maximize learning gains, the participants will be asked to analyze and render reports on case studies.