Microvision helps you prepare for the COVID19 crisis

The COVID-19 pandemic has various negative implications for an MFI’s operations. Clients that cannot repay their loans on time and moreover withdraw their deposits, could lead to major liquidity problems for an MFI. In addition, loan losses will reduce equity and may result in the institution’s bankruptcy. Having a business continuity plan (BCP) in place that takes into account different scenarios and stress-testing would be a practical way to help management tackle the crisis and build institutional immunity but would also help investors, who need to receive confirmation of an institution’s preparedness and response to this crisis. A business continuity plan that can be drawn up using quickly prepared scenarios, including those that could arise in a crisis, could allow management to better understand the impact of the crisis on the institution. Such a plan would allow management to anticipate issues, so that measures could be put in place and appropriate risk-mitigation decisions taken (e.g. acceptable leverage could be determined, crucial human resources identified and safeguarded, liquidity managed).

This document explains how the Microvision tool can be used by MFIs to develop different scenarios and stress-testing, which are important elements of any business continuity plan.

This document is divided into 4 parts:

1. Introduction to Microvision
2. Adjusting business plan projections
3. Preparing a business continuity plan with scenarios and stress-testing
4. Building scenarios in Microvision

Learn more about Microvision