The Management of Operational Risk in the Microfinance Sector Looked through Albanian Reality

Alma Delija


The Albanian economy, as an economy of a developing country characterized by a positive trend upward despite the restraining effects caused by the global crisis. Macroeconomic indicators are demonstrating consistency, the financial system is healthy and economic activity making progress. At the same time, the diversification of the local economy to respond to the demands of the free market, increased competition, and untapped potential in agriculture necessitates the strengthening of relations and cooperation structures for financing sustainable development in the country. Experience has shown that microfinance has been a powerful tool for the development of small- and medium agribusiness, playing an ever more crucial in improving the living conditions and welfare of the population, especially in rural areas, the creation the creation of new work by contributing to the economic development of the country. The rapid growth of this sector is expected to continue as a result of increased funding needs, especially in rural areas. But this intensive growth has changed and risk profile microfinance institutions. These institutions looking constantly expanding, often did not pay sufficient attention to risks. One of these is and operational risk. Different authors give numerous definitions about operational risk, often with overlapping similar. This paper does not pretend to provide solutions to gold in relation to operational risk avoidance, but will be followed up in a structured form as suggested by theoretical analysis of this field study authors.

DOI: 10.5901/mjss.2015.v6n2s2p35

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Mediterranean Journal of Social Sciences ISSN 2039-9340(Print) ISSN 2039-2117(Online)

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