Corporate governance is an important component of IDB Invest’s risk management since investments in well-run companies tend to be more secure.
Companies that adopt good practices are also more likely to have long-term sustainable growth, which translates into a greater impact on regional development—a major consideration for a multilateral development bank like IDB Invest.
Our ultimate goal is to help our clients become leaders in their markets. When they do so, they contribute to a local culture of good corporate governance including the values of transparency, equitable treatment, corporate accountability, and long-term sustainability.
The best way for us to achieve our objectives is to engage with our clients, either as creditor, shareholder or provider of technical assistance. To guide us in assessing our client’s corporate governance, we have developed a methodology—in line with the Corporate Governance Development Framework—that can be tailored to distinct ownership structures, business sectors and regulatory environment. Our methodology helps us determine whether a prospective client meets certain thresholds, as well as identify specific challenges and develop recommendations for improvement.