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:

  1. MFIs at all tier levels are provided with an appropriate and standardized risk management approach
  2. Risk management knowledge is valued by all stakeholders
  3. 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.