Annex 4: Operational Risk Assessment Framework (ORAF) MOROCCO: Microfinance Development Project Stage: Approval Project Stakeholder Risks Rating Moderate Risk Management: The project will only extend technical assistance to entities which are considered to be Description: sufficiently prepared of integrating the changes. In a number of components, TA is preceded by a (i) Agencies receiving technical assistance may not have the diagnostic effort to measure the status quo and highlight structural aspects/ weaknesses which need to be institutional capacity to effectively absorb project resources. addressed before any assistance can be provided. This may prevent effective translation of capacity building to Due Date : Stage: changes to institutional policies and procedures and may Resp: Bank Status: In progress Preparation/Implementation prevent project outputs from being attained. Risk Management: The Bank has conducted extensive consultations with key donors engaged in microfinance sector during project preparation, and will continue to do so throughout the Morocco’s (ii) A number of donors supporting the microfinance sector in implementation period to ensure that this projects contribution is harmonized and complementary with Morocco are engaged in capacity building work, leaving a existing initiatives and activities. potential risk of duplication/ lack of coordination Resp: Bank and Due Date : Stage: Status: In progress Client Preparation/Implementation Project outreach during both preparation and implementation phases will focus on Risk Management: clearly communicating project activities and proposed benefits to participating MFIs and other financial (iii) There is a risk that the MFIs might not be supportive of the institutions serving low-income communities in Morocco. The project has been developed in close proposed capacity building of the FNAM, other MFIs or consultations with MFIs, which have provided useful inputs to the design. project’s microenterprises. Resp: Bank and Due Date : Stage: Status: In progress Client Preparation/Implementation Implementing Agency Risks (including fiduciary) Capacity Rating: High Description: The MoEF may not have the necessary dedicated The WB team has assessed the institutional capacity of the MoEF and identified Risk Management:
Annex 4: Operational Risk Assessment Framework (ORAF) MOROCCO: Microfinance Development Project Stage: Approval Project Stakeholder Risks Rating Moderate Description: (i) Agencies receiving technical assistance may not have the institutional capacity to effectively absorb project resources. This may prevent effective translation of capacity building to changes to institutional policies and procedures and may prevent project outputs from being attained. Risk Management: The project will only extend technical assistance to entities which are considered to be sufficiently prepared of integrating the changes. In a number of components, TA is preceded by a diagnostic effort to measure the status quo and highlight structural aspects/ weaknesses which need to be addressed before any assistance can be provided. Resp: Bank Stage: Preparation/Implementation Due Date : Status: In progress (ii) A number of donors supporting the microfinance sector in Morocco are engaged in capacity building work, leaving a potential risk of duplication/ lack of coordination Risk Management: The Bank has conducted extensive consultations with key donors engaged in Morocco’s microfinance sector during project preparation, and will continue to do so throughout the implementation period to ensure that this projects contribution is harmonized and complementary with existing initiatives and activities. Resp: Bank and Client Stage: Preparation/Implementation Due Date : Status: In progress (iii) There is a risk that the MFIs might not be supportive of the proposed capacity building of the FNAM, other MFIs or microenterprises. Risk Management: Project outreach during both preparation and implementation phases will focus on clearly communicating project activities and proposed benefits to participating MFIs and other financial institutions serving low-income communities in Morocco. The project has been developed in close consultations with MFIs, which have provided useful inputs to the project’s design. Resp: Bank and Client Stage: Preparation/Implementation Due Date : Status: In progress Implementing Agency Risks (including fiduciary) Capacity Rating: High Description: The MoEF may not have the necessary dedicated Risk Management: The WB team has assessed the institutional capacity of the MoEF and identified
755220PAD0P144000Final0PAD0June026.docx