Value Proposition

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