VisionFund Manages Risk
Whenever an organisation is required to manage large numbers of cash transactions, minimising fraud is of a critical value. VisionFund takes the operational risk of fraud very seriously and is continuously working to minimise fraud at all levels.
VisionFund manages the risk of fraud, through standardised operational controls, structures of governance within the MFIs, and Regional oversight. All MFIs are also subject to both internal and external audit. World Vision discloses fraud losses incurred in VisionFund network operations during the year in their
Annual Accountability Report.
VisionFund continues to innovate. Cashless banking and Internet-connected real time loan processing have been introduced in some markets, increasing efficiency and further reducing the risk of fraud. When fraud is detected, VisionFund acts swiftly in accordance with its zero tolerance policy.
During the 2018 Fiscal Year, based on information obtained from investigations performed by VisionFund Internal Audit and routine VisionFund Monthly Management Reports, the total confirmed fraud loss for the VisionFund network was US$ 1.7 million.
This represented 0.35% of assets, which VisionFund management believes is low for the global microfinance industry.