REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – INDIVIDUAL CONSULTANT)

COUNTRY - Kosovo

NAME OF PROJECT- Financial Sector Strengthening Project,

IDA Credit No. 6416-XK

Project ID No.165147

ASSIGMENT TITLE: Operational Risk Framework-(Consultant)

Reference number: ESSP-IC-CS-011

Date: March 15, 2023

Background

The Kosovo Credit Guarantee Fund (KCGF) is an independent legal entity established by its law, to help meet the need for increased access to finance for micro, small, and medium enterprises (MSMEs) in Kosovo to create jobs, increase local production, and value-added services, improve the trade balance, and enhance financing opportunities for MSMEs.

The Government of Kosovo (GoK) has received a Credit from the International Development Association (IDA) in the amount of Euro 22.3 million (USD 25 million equivalent) to finance the Financial Sector Strengthening Project, expected to be implemented within a three-year period. The Project aims to assist the GoK to improve access to finance for Micro, Small, and Medium Sized Enterprises by strengthening the financial and technical capacity of the Kosovo Credit Guarantee Fund.

Description of work responsibilities:

This assignment aims to define the criteria for engaging a professional Consultant that will identify, assess, measure, and propose measures for mitigating operational risks inherent in KCGF activity, to reduce the risks and improve the process and control.

Under the contract, the Consultant should:

Conduct interviews with all relevant stakeholders in KCGF for identifying and determining relevant risks in KCGF activities, respectively the team will:

• Evaluate the KCGF activities/operations and express an opinion on the systems of internal controls according to the Self-Assessment Risk Template (SART);
• Identify and determine types of risks in KCGF activities;
• Build a risk event database platform;
• Evaluate each type of risk in KCGF activities;
• Ranking the risks in accordance with their relative weight (create the risk heat map);
• Determine the appropriate risk appetite or level of risk exposure;
• Create a mechanism for reducing the likelihood of unforeseen events;
• Develop the framework (procedure) that defines:
  • the process of identification, evaluation, and mitigation of the operational risk;
  • the process of monitoring the operational risk with timelines for review and control of the implementation.

More specifically:

The Consultant is responsible for making a SART for identifying existing and potential risks. Such identification can be done by interviewing KCGF staff and Board Members in some, but not limited to the following fields:

- Financial Risks

• Guarantee Risks;
• Liquidity Risks;
• Capital investment risks;
• Other risks that could be identified by the consultant.

- Strategic/Business/Reputation Risks

• Risks with the realization of business targets;
• Competition;
• Public and media-related risks;
• Reputational risks;
• Other risks that could be identified by the consultant.

- Climate Risk

• Sectors impacted by climate risk;
• Potential losses in the KCGF portfolio.

- Operational Risks

• Fraud, theft, fraud, cyber security, technology systems integrity, and other IT;
• Fire, flood, water damage, power cut;
• Covid and pandemic/epidemic/endemic diseases related risks;
• Risks related to outsourced services;
• Risks related to service providers;
• Occupational Health and Safety;
• Risks related to the sudden loss of a board member and staff;
• Risks related to labor law and job contracts;
• Conflict of interest;
• Other risks that could be identified by the consultant.

- Compliance

• Legal, regulatory, and contractual (including stakeholder and donor contracts);
• Other risks that could be identified by the consultant.

- Board Level Risks

• All potential risks that could be identified in this area.

The Consultant will assess the process, the people, the system (IT), the agreements, and other external risk factors.

The Consultant should prepare a risk event database that identifies potential risks (the history of occurred or potential incidents within KCGF). Once the Consultant identifies the potential risks, it should be taken into consideration the history of occurred or potential incidents. The review of casual and driving factors of each incident should be taken into consideration.

The Consultant should classify the inherent risk in terms of the likelihood that the risk will become real and if it does occur, it should be classified as low, medium, or high.

The Consultant should describe the control mechanism in order to reduce the impact or the likelihood of the risk becoming a danger to the organization. Thus, the Consultant should propose action that avoids the inherent risk and mitigates the residual risk, the process owners, and the proposed timeframe. For the residual risk, the Consultant should provide a methodology to calculate the reserves against expected operational losses.

The Consultant should prepare a procedure that defines the process of risk assessment, and risk treatment/control and monitor the risk in a repeated cycle.

Qualifications and skills:

The Consultant needs to meet the following requirements:

• Bachelor’s degree in economics or related fields. Certificates in operational risk management are preferred;
• Minimum of five (5) years of professional experience in the banking sector, more specifically in the risk department;
• Proficiency in the English language is required;
• CV and Motivational Letter;
• Diplomas, Certificates, and other relevant documents related to his/her experiences;

Duration and Payment schedule

The Consultant will be a part-time position within the project. The consultant will provide the services for a total of 60 days (April 17, 2023-August 31,2023). The consultant’s employment is always subject to satisfaction.

Reporting

The Consultant will report to the Project Coordinator/Managing Director of KCGF and will submit monthly timesheets to account for the actual days worked during the calendar month.

Selection Process

The selection process will be based on the following criteria:

Relevant work experience (70%)

Relevant education (30%)

The Consultant will be selected in accordance with the procedures set out in the World Bank’s: Procurement Regulations for Investment Project Financing (IPF) Borrowers, July 2016, revised Nov 2017, following the open competitive selection process.

Interested Individual Consultants may obtain further information at the address below during office hours: 08:0-16:0hrs (Monday to Friday).

Expression of interest must delivery in a written form or by e-mail, to the address below by; March 29, 2023.

Kosovo Credit Guarantee Fund, KCGF

Address:"Njazi Alishani No.5, Street

10000, Prishtina, Kosovo,

Email: [email protected]