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Background Active RIM assessors meet to share RMGM assignment experiences and become a feedback loop to enhance the model in a practical sense.   Building on RIM’s Mission and Vision Enhances industry collaboration and standardization by engaging active members and assessors with real-time feedback on application of RMGM with microfinance institutions in various tier levels […]

Background Based on a popular demand from RIM members in the MENA region, an Arabic working group has been formed in order to not only translate risk language but also bring forth cultural specific issues related to microfinance risk management in Arabic-speaking countries.   Building on RIM’s Mission and Vision Risk management framework translation is […]

Background Operational risk is the risk of financial losses and negative social performance related to failed people, processes, and systems in an MFI’s daily operations as well as losses stemming from external events and legal and compliance risk. All financial institutions are required, either by regulation and/or best practice, to adequately manage and mitigate operational […]

Background All organizations are subject to fraud risks. Emerging technologies as a channel to provide digital financial services (DFS) are being embraced by the microfinance sector because of their potential to expand financial inclusion. The use of such technologies (i.e. cellphones, smartphones, tablets) often relies on third-party agents, presenting new and different operational risks and […]

Background RIM has established its Graduation Model as a meaningful framework and set of guidelines for risk management best practices. Using the Graduation Model, MFIs can establish their own risk management frameworks based on the size and scope of their operations. But for stakeholders and shareholders of network banks and MFIs, it can be a […]

RIM working groups build on our mission and vision by facilitating strategic collaboration of industry practitioners around the industry’s most pressing risk management issues. Working Group’s Objective The objective of RIM working group is to practically enhance Risk Management Graduation Model, in order to develop and share more appropriate risk management standards, tools and practices […]

In June 2018, RIM members approved a merger with the Professional Risk Managers’ International Association (PRMIA). Kristin Lucas serves as the new RIM Director to provide dedicated leadership to the initiative. The Director reports to the Steering Committee and is responsible for strategy development and implementation, fundraising, human resource management, financial management, and administration of […]

Operational Risk The roof of the Risk Management Graduation Model represents the achievement of an MFI’s financial and social goals. It is essential to bear in mind that the responsibility for reaching these financial and social goal lies on the MFI’s board and senior management and is not part of the risk management function. Accordingly, […]

Operational risk is the risk of financial losses and negative social performance related to failed people, processes, and systems in an MFI’s daily operations. As MFIs decentralize and offer a wider range of financial products and alternative delivery channels, the operational risks multiply and it becomes increasingly important to manage them effectively. There are five […]

Financial risk is the risk of financial losses and negative social performance related to the maturity, currency, re-pricing, and concentration structure of an MFI’s assets and liabilities. As MFIs face product differentiation among loan assets and more choices in funding sources, it becomes increasingly important to manage these risks effectively. There are four subcategories of […]