Theory of Change
To experience lasting change within microfinance risk management, certain steps need to be taken. RIM aims to raise the bar in microfinance risk management and foster a socially-focused microfinance sector where clients are protected from the impacts of internal and external risks.
To achieve this, the following should be addressed:
- MFIs at all tier levels are provided with an appropriate and standardized risk management approach
- Risk management knowledge is valued by all stakeholders
- Adequate accountability and governance of risk is in place
These issues can only be effective within an environment whereby proper incentive mechanisms exist for implementation of appropriate risk management.