Session 3. Policy Design and Tools.pptx

Policy formulation

1. Welcome to: Session 3: POLICY DESIGN AND TOOLS Luz Yringco Head, Finance Cluster

2. Our Objectives L.O. 1. Identifying policy instruments and options L.O. 2. Understanding Regulatory and non-regulatory policies in the cooperative sector L.O. 3. Developing and conducting risk assessment policy design

3. Types of policy instruments and options Regulatory Instruments establish laws, regulations, and guidelines that govern cooperative operations . Cooperative Development Authority (CDA) Issuances Republic Act 9520 (Philippine Cooperative Code of 2008 ) Tax Exemptions and Compliance Guidelines Strengthen compliance monitoring for cooperatives. Simplify registration and reporting requirements . Introduce legal reforms to encourage cooperative growth. Policy Options Policy Instruments Type of Policy Economic and Financial Instruments provide financial assistance, incentives, and economic opportunities Subsidies and Grants Credit Guarantee Programs Tax Incentives Expand low-interest loan programs for cooperatives. Implement tax incentives for cooperatives engaged in agriculture, manufacturing, and services . Create a Cooperative Development Fund for capacity building.

4. Types of policy instruments and options Capacity-Building and Educational Instruments training, education, and awareness programs to strengthen cooperative management and governance . Develop nationwide cooperative education programs in schools and communities. Offer free training and certification for cooperative managers. Strengthen cooperative research initiatives to guide policy improvements. Policy Options Policy Instruments Type of Policy Market and Trade Instruments support cooperatives in accessing markets, improving trade, and promoting competitiveness . Government Procurement Policies Export Assistance Programs Fair Trade Certification Mandate government agencies to source products from cooperatives . Provide marketing support and e-commerce platforms for cooperatives. Promote cooperative trade expos and networking events Mandatory Governance Training Financial Literacy Programs Youth and Women Empowerment Programs

5. Types of policy instruments and options Technological and Innovation Instruments digital transformation, IT adoption, and innovation support for cooperatives . Promote fintech solutions for cooperative financial transactions. Implement training programs on cybersecurity and digital marketing Policy Options Policy Instruments Type of Policy E-Cooperative Platforms IT Grants for Digital Transformation Cybersecurity and Data Privacy Policies

6. SELECTING THE BEST POLICY OPTION Effectiveness . Feasibility . Sustainability Inclusivity Best Policy Options

7. QUIZ on Understanding Regulatory and non-regulatory policies REGULATORY POLICIES NON-REGULATORY POLICIES (L aws, rules, and government-imposed standards ) (I ncentives, capacity-building programs, voluntary guidelines, and government support) Republic Act 11364 CDA Memorandum Circulars DOLE Laws Tax Exemption Rules Audit and Compliance reporting Regulation on Coop banks Mandatory democratic governance Transparency and reporting standards Rules on members’ rights and responsibilities Laws on sustainable cooperative practices Food and agricultural safety standards Government grants and subsidies Soft loan programs Marketing and trade assistance Leadership and governance training Financial literacy and business development programs Education and awareness campaign Code of ethics and self regulation Sustainability and CSR guidelines Networking and partnership programs Contractual SOLIDARITY

8. Understanding Regulatory and non-regulatory policies REGULATORY POLICIES Legal and Institutional Frameworks Republic Act 9520 & 11364 Labor Laws (DOLE Guidelines) Financial and Taxation Policies Tax Exemption Guidelines Audit and Compliance Reporting Regulations on Cooperative Banks Governance and Membership Regulations Mandatory Democratic Governance Transparency and Reporting Standards Rules on Membership Rights and Responsibilities Environmental and Sustainability Regulations Laws on Sustainable Cooperative Practices Food and Agricultural Safety Standards NON-REGULATORY POLICIES (L aws, rules, and government-imposed standards ) (I ncentives, capacity-building programs, voluntary guidelines, and government support) Economic and Financial Support Policies Government Grants and Subsidies Low-Interest Loan Programs Market Access and Trade Assistance Capacity-Building and Training Programs Leadership and Governance Training Financial Literacy and Business Development Programs Education and Awareness Campaigns Voluntary Guidelines and Best Practices Codes of Ethics and Self-Regulation Policies Sustainability and CSR Guidelines Networking and Partnership Programs Contractual Solidarity

9. IMPACT OF REGULATORY POLICIES IMPACT OF NON- REGULATORY POLICIES Protects members’ rights and cooperative integrity. Ensures cooperatives contribute to economic and social development. Prevents fraud, financial mismanagement, and unfair labor practices. Encourages cooperative expansion and innovation. Reduces operational costs through financial support and incentives. Strengthens cooperative knowledge and governance through training and education

10. Aspect Regulatory Policies Non-Regulatory Policies Nature Enforcement Examples Objective Consequences of Non-Compliance UNIVERSITY CHALLENGE

11. Aspect Regulatory Policies Non-Regulatory Policies Nature Legally binding Voluntary and supportive Enforcement Mandatory compliance Encouraged but not required Examples RA 9520, CDA rules, taxation laws Grants, training programs, voluntary guidelines Objective Ensure order, compliance, and accountability Promote cooperative development and capacity building Consequences of Non-Compliance Legal penalties, fines, dissolution No legal consequences, but may affect cooperative performance UNIVERSITY CHALLENGE

12. Developing And Conducting Risk Assessment In Policy Design Step 1 Identify Policy Risks Step 2 Assess the Impact and Likelihood of Risks Step 3 Develop Risk Mitigation Strategies Step 4 Monitor and Review Risks Regularly Financial Risks Regulatory Risks Governance Risks Operational Risks Market Risks Social and Environmental Risks Likelihood (Probability) Impact (Consequences) L, M, H Risk Mitigation Strategy Loan Defaults Implement stricter credit screening and repayment plans Regulatory Non-Compliance Regular legal audits and compliance training Governance Failures Strengthen transparency, leadership training, and internal controls Cybersecurity Threats Adopt data protection policies and system security upgrades Economic Downturns Diversify cooperative income sources and savings strategies Conduct regular policy reviews (annually or bi-annually). Use Key Risk Indicators (KRIs) to track risks over time Update risk mitigation strategies based on new market trends and regulations .

13. 1️ ⃣ Define the policy being assessed (e.g., financial policy, governance policy). 2️ ⃣ Engage key stakeholders (board members, managers, financial officers, and members). 3️ ⃣ Brainstorm potential risks using SWOT analysis 4️ ⃣ Use risk assessment tools (Risk matrix, impact-likelihood charts). 5️ ⃣ Develop an action plan based on risk evaluation findings. Steps in Conducting a Policy Risk Assessment Workshop

14. Conclusion Risk assessment in policy design enhances decision-making, minimizes uncertainties, and ensures sustainability . By systematically identifying, evaluating, and mitigating risks, we can create policies that are resilient, member-focused, and compliant with legal standards .