Ob Pathein

Observation 1
Operation Risk (Process Risk)

Risk Description (Medium Risk) Pathein

Pathein Branch LOs explained about the client waiting time for repayments took too long on Monday and
Friday.

Risk Approach
Talked with BM.

Potential Outcomes
Bad Customer Service and inpatient customers

Risk Strategy and Action Plan:

By Mitigate and Control,
BM need to find strategies to deal with cashier and voucher processes with repayment clients.

Observation 2
Operation Risk (Geographic Risk)
Risk Description (Medium Risk) Pathein
Travel distance to nearby pathein (kyauk Kone) village took about 3 hours.

Risk Approach
Talked with LOs.

Potential Outcomes
faraway clients will potentially have late repayments or delinquencies in the future.

Risk Strategy and Action Plan:

By Mitigate and Control,
LOs will have to travel frequently to get the clients familiar with the conditions and make sure
repayments are on time.

Observation 3
Operation Risk (Incentive Risk)
Risk Description (Medium Risk) Pathein
LOs give out low quality loans caz of bonus and incentive to hit loan target

Risk Approach
Talked with BM.

Potential Outcomes
Late and delinquencies could happen from low quality, high disbursements from bonus hungry LOs.

Risk Strategy and Action Plan:

By Mitigate and Control,
Management need to structure incentive and bonus system better.

Observation 4
Strategic Risk (Competition Risk)
Risk Description (Medium Risk) Pathein
4 MFI competitors are planning to open branches. Easy MFI is planning to disburse individual loans in
Pathein Townships in the coming month.

Risk Approach
Talked with BM.

Potential Outcomes
Branch will face tough competition in the future.

Risk Strategy and Action Plan:

By Mitigate and Control,
BM need to be aware of external and competition environments to compete for clients with other MFIs.

Observation 5
Operation Risk (Process Risk)
Risk Description (Medium Risk) Pathein
New LOs are not following loan disbursement process such as signing contracts with clients before
checking clients’ houses and business properly

Risk Approach
Checked and field visit with LOs

Potential Outcomes
Delinquencies and late will be coming from new LOs disbursements

Risk Strategy and Action Plan:

By Mitigate and Control,
BM need to be aware of how LOs are disbursing loans.