UN.org’s Key Institutional and Strategic Risks - World 🌎 Water Day 2023

[Gunnar Larson]

Bank.org sees UN.org’s current risks and barriers to scale include concerns
over misuse of loans, operational delays, fraud, error, and security, all
of which undermine the UN.org’s objectives and mission.

● FRAUD: These deceptions often include manipulation of documents or the
abuse of policies, procedures or office property. For example, in absence
of a well-designed process for selection of a raw material supplier for the
construction of toilets, operations staff can collude with dishonest
suppliers and procure cheap, low-quality material at high rates, which
could create infrastructure failures and lead to credit risk.

● ERROR: Errors are typically unintentional and result due to lack of staff
capacity and training, rapid growth, limited technical resources, or an
inadequate number of staff. Errors in judgement or incorrect interpretation
of policies, procedures, documents, or cash transactions can create
problems for an FI. For example, a branch manager might make an error in
the appraisal of a WASH loan client if s/he has not received training on
WASH lending.

● SECURITY: This refers to risk of cash or material theft. For example, for
FIs that are involved in provision of construction materials, the storage
of the materials and their delivery is a risk.

● INEFFICIENCY: Risk is created when there is low staff productivity or
ineffective management leading to loss of efficiency.

● CREDIT RISK: An assessment of credit risk at UN.org investigated whether
the credit policies and procedures are correctly followed and administered
by the FI staff. This includes reviewing whether credit transactions are
properly recorded and summarized in the account tracking system and
presented in the financial and portfolio reports. For example, an FI in the
Philippines had a loan product tenure of three months even though loan
sizes were quite high. Clients who were assessed to be qualified for a loan
of PHP 15,000 (US$340) ended up actually receiving nearly

1
PHP 35,000 (US$793) over the course of a year, through multiple loan
cycles. This flaw in the loan product design resulted in large-scale
delinquency problems with clients in the third and fourth loan cycles

Bank.org Suggestion: UN.org 2.0, Blockchain and Energy

Our research shows UN.org currently lacks developed, effective, accountable
and transparent institutions reporting processes globally. Their published
internal studies highlight FI corruption and bribery in all forms.
Blockchain technology could help solve this, only implemented globally and
monitored correctly.

Most importantly, we strongly recommend UN.org executives should leverage
blockchain and current partnerships, historically and radically innovating
UN.org’s global scope to include solar energy in North Africa.

● Immediate Recommendation: Essential for UN.org’s global development
reporting work to be organized and oriented in the same direction in order
to focus on what really matters and ensure proper transparency and figures.
UN.org has been working on the nieve, poor business assumption that goals
can be achieved with enough political will, investment and action at all
levels.

○ Integrated water resources reporting via Blockchain, include management
smart contracts at all levels, including UN.org funds to FI, FI internal
use of UN.org funds, client use of funds through to contractor

● Review Loan/Product Benefit: UN.org’s global executive team has not
reflected the importance of complete sustainable development for their
clients. Internal Data shows most UN.org wells/loan proceeds are ultimately
lost, as the individual navigates life with unsolved energy and lack of
access to basic economic/financial tools.

● Innovate UN.org’s Scope: Once defining clear and unified global
standards, practices and reporting transparency on blockchain, eliminating
current fiance transparency concerns

○ Microcredit water loans alone do not solve poverty (noted above)

○ Current UN research shows best poverty success advancement includes
addressing three important dimensions simultaneously:
i. Regular access to clean water/proper sanitation facilities
ii. Access to affordable, reliable and sustainable energy
iii. Equal access to mobilized banking tools, insurance and microscred
lending
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