Why Corporate Governance Matters For Development Finance Institutions (dfis) ?
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Adding Value. Corporate governance is a priority for DFIs because it presents OPPORTUNITIES to manage risks and add value to investee COMPANIES through increased performance and access to CAPITAL.
Reducing Investment Risk. It is in the interest of DFIs to reduce the risk of our investments by IMPROVING the governance of investee companies.
Avoiding Reputational Risk. DFIs ASSUME a reputational risk if involved with companies with poor governance, and may become tainted by corporate scandals at investee companies.
Developing Capital Markets. Improving corporate governance contributes to the development of the public and private capital markets.