Description

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.