Risk management

Why learn to manage the risks faced by an MFI?

Managing risks appropriately strengthens an MFI’s credibility on the market and generates new growth opportunities.

Like all financial institutions, an MFI is exposed, on a daily basis, to numerous internal and external risks which represent a threat to its stability, profitability and sustainability. It is therefore essential to be able to calculate and manage these risks effectively. Whilst it may be impossible to control external causes of disruption and upheaval, it is possible to prepare for these eventualities in order to limit their impact.  Internal issues, such as credit and liquidity risk, market and pricing, operations and compliance can all be managed thanks to quantitative methods of identification, monitoring and control of the different factors involved. 


 

ADA3T Tools

Our risk management tool    

The Risk Management Graduation Model for MFIs (RMGM) is a practical tool presented in the form of a road map to be followed in order to carry out an assessment and to identify pathways to improve the risk management of an MFI. On the basis of an assessment process, an MFI can evaluate its system, structure and current risk management capacity against the best practices in the sector.

The “Risk Management Initiative in Microfinance” (RIM) has developed this tool, which is based on current good risk management practices, in accordance with the Basel regulation and has adapted it to microfinance.
 

Download the RMGM tool free of charge from the RIM platform


ADA provides you with support to analyse your risk management using the RMGM tool. This analysis will enable you to assess the current situation and to issue recommendations for the progressive and optimal structuring of your institution’s risk management.  


 

ADA3T Trainings

Our risk management training courses

ADA3T Technical assistance

Our technical assistance

We offer two forms of technical assistance to help you to improve your risk management: 

  • Risk management coaching programme (1 to 3 years). At the end of the risk management seminar held in Luxembourg, the MFIs which have attended the seminar have the opportunity to apply to take part in a coaching programme to develop their risk management department.  
  • Risk management analysis using the MPGR tool. The aim of this technical assistance is to analyse an MFI in terms of risk management in order to develop and implement a plan of action.


Actualité

CALL FOR INTEREST

Risk Management Assessment Facility based on the Risk Management Graduation Model

Is risk management a priority for your institution?

Do you need to improve your current risk management? “Yes, maybe… but which improvements and how do I prioritize them?” 

If you are convinced – like us – that managing risks appropriately can strengthen your credibility on the market and generate new growth opportunities, then this facility is for you!

 

This Risk Management Assessment Facility aims to support MFIs that are willing to improve and enhance their risk management.

Therefore the risk management assessment facility supports MFIs in:

  1. Carrying out an assessment of the institution’s risk management using the RMGM tool;
  2. Drafting an action plan in order to improve and enhance its risk management;
  3. Supporting institutions in implementing their action plan via a technical assistance and coaching plan (available to interested MFIs as part of a second phase).

Any regulated microfinance institution located in a less developed country, whatever its size and its tier level (I, II or III) can apply for this call for interest.

The assessment cost varies according to the institution’s tier level, as this determines the required number of days for the mission. The cost varies between 10 000 EUR and 14 000 EUR, and this facility will financially support the assessment cost.

To find out more about this facility, please have a look at the document below.

If you are interested in applying, don’t hesitate to fill the application form and send it back to us together with the requested documents before the 30th July 2017 to the following email address:

We will get back to you by the end of August 2017.

MFIs will be selected by the ADA selection committee. The selection criteria will include a global assessment of the MFI’s profile, its eligibility, its level of motivation, and the quality of its application. The applications will allocated on a first come first served basis.

Only 3 institutions will be selected in 2017.
 

Do not hesitate to contact us at  if you need further information!

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