Managing Multi-Faceted Risks in Microfinance Operations

摘要

Microfinance institutions (MFIs) face not only credit risk, but also risks related to liquidity, market conditions, transactions, fraud, governance, and reputation. The best MFIs manage all risks by assessing repayment abilities, using social collateral and good information systems, diversifying products and markets, and cooperating with all stakeholders. A comprehensive management of MFIs requires rigorous assessment, measurement, monitoring, and management of the risks through close oversight and performance evaluation.