Risk management improvement begins with the Board of Directors. The graduation approach employed within the Risk Management Graduation Model (RMGM) framework provides senior management and the Board of Directors a forward-looking view of the recommended risk management structures which should be in place to align risk management best practice with the strategies laid out its multi-year business plan. Through assessing its adherence to best practice risk management standards, MFIs are then able to determine their Institutional Graduation Path – a work plan developed by senior management and the board which describes how the institution will develop its formal risk management function into adherence with the RMGM framework over time. With a forward-looking view of the improvements needed to adhere to best practice risk management, senior management and Board of Directors are in a position to strategically plan and best allocate personnel and financial resources towards risk management improvement. With a suitable plan in place, an MFI can then execute the plan and evaluate the use of resources. This institutional risk management improvement process is a continuous and dynamic process.