Microfinance Banana Skins 2008 - Citigroup

C S F I / New York CSFIAsia Far East Middle EastBiggest risks1 Managing technology Foreign exchange Staffing2 Management quality Unrealisable expectations Capital availability3 Corporate governance Cost control Competition4 Staffing Competition Inappropriate regulation5 Competition Inappropriate regulation Interest rates6 Mission drift Management quality Mission drift7 Fraud Political interference Managing technology8 Reputation Credit risk Corporate governance9 Strategy Natural catastrophes Macro-economic trends10 Credit risk Mission drift Political interference11 Product development Distribution channels Ownership12 Foreign exchange Ownership Credit risk13 Liquidity Interest rates Too little funding14 Ownership Liquidity Foreign exchange15 Profitability Macro-economic trends Fraud16 Back office operations Staffing Liquidity17 Interest rates Too little funding Management quality18 Political interference Managing technology Product development19 Cost control Product development Profitability20 Inappropriate regulation Transparency Refinancing21 Transparency Back office operations Strategy22 Macro-economic trends Corporate governance Transparency23 Unrealisable expectations Fraud Cost control24 Too little funding Too much funding Back office operations25 Refinancing Capital availability Distribution channels26 Natural catastrophes Refinancing Too much funding27 Capital availability Reputation Unrealisable expectations28 Distribution channels Profitability Natural catastrophes29 Too much funding Strategy ReputationFastest risers1 Competition Competition Competition2 Staffing Ownership Mission drift3 Credit risk Credit risk Staffing4 Mission drift Distribution channels Capital availability5 Strategy Mission drift Interest rates6 Interest rates Political interference Unrealisable expectations7 Fraud Staffing Inappropriate regulation8 Product development Too little funding Political interference9 Managing technology Management quality Strategy10 Corporate governance Managing technology Credit risk11 Foreign exchange Natural catastrophes Fraud12 Ownership Product development Liquidity13 Political interference Reputation Management quality14 Cost control Unrealisable expectations Product development15 Natural catastrophes Corporate governance Profitability16 Liquidity Liquidity Back office operations17 Too much funding Refinancing Corporate governance18 Back office operations Strategy Cost control19 Macro-economic trends Back office operations Foreign exchange20 Profitability Cost control Too little funding21 Refinancing Foreign exchange Too much funding22 Management quality Too much funding Macro-economic trends23 Transparency Capital availability Managing technology24 Unrealisable expectations Inappropriate regulation Natural catastrophes25 Too little funding Macro-economic trends Ownership26 Inappropriate regulation Transparency Refinancing27 Reputation Interest rates Reputation28 Distribution channels Profitability Transparency29 Capital availability Fraud Distribution channels40 CSFI / New York CSFI E-mail: info@csfi.org.uk Web: www.csfi.org.uk