RISK MANAGEMENT IN MICROFINANCE INSTITUTIONS (MFIs)

The research study is designed to serve as a resource for MFI practitioners, regulators, and policy makers for determining and managing the risk profile of MFI institutions. The research examines the broad question of how MFIs manage risk, given their fluid nature of operations that make them vulnerable to a myriad of risks. This study reviews case experiences of MFI risk approaches relative to commercial banking risk management practices; and draws conclusions that lead to a proactive risk management approach that can suit the unique and current risk exposure levels of the Microfinance Industry. The study is confined to risks faced by Microfinance Institutions relative to risk management practices in conventional banking. In spite of covering this wider scope of MFI risks, the study examines the experience of BRAC-MFI.

Autorentext
Dr Anthony (Tony) Merna is senior partner of Oriel Group Practice, a multidisciplinary research and consultancy practice based in Manchester and a visiting lecturer to Manchester Business School at the University of Manchester. Lokiru Benedict is a graduate scholar of the MSc. Development Finance at the University of Manchester.