RIM’s collaborative model provides the option for the best practices, creation of higher standards and global promotion of microfinance risk management.
This collaborative approach provides the following:
- A unique mix of founding members (thought leadership to technical implementers)
- Wide reaching networks (through MIV investment portfolios, existing TA program, etc.)
- Years of knowledge build up and lessons learned
- Rich experience in bringing together industry stakeholders to solve sector-wide problems (SMART Campaign, MFX Solutions, Council of Microfinance Equity Funds (CMEF), European/African Microfinance Week)
- Proven track record in industry thought leadership
RIM’s Risk Management Graduation Model will provide the following value to the sector:
Reduced barriers for implementation of risk management
- Better understood risk management standards for MFIs at all tier levels
- Well-defined risk management gap analysis
- Lower implementation cost
- Forward-looking visibility on MFI risk management needs
- Ability to create proactive risk management development plan
- Enables ownership of risk management by MFI board and senior management
- MFI confidence and willingness to engage in risk management increased
- Develops incentives for continuous improvement
Scalable, double bottom line focused, best practice risk management standards
- Integrated risk management approach
- Includes social and financial elements of risk management
- Based on decades of microfinance risk management experience and industry input
- Flexible guidelines for different institutional tier levels
More efficient use of financial and human resources
- Reduces excess waste of donor and MFI funds through decrease of duplicated efforts and poorly performing capacity building projects
- Focuses MFI financial and human resources on strategic priorities
- Incorporates risk management into the strategic planning process