Risk Management for Indian MFIs - IFC
IFC engaged MicroSave to scale up an existing Risk Management project, consolidating learning from an earlier project and offer a standard suite of services to MFIs for developing their risk frameworks. MicroSave team conducted a detailed risk assessment and diagnostic study of the selected MFI: Sonata, one of the largest microfinance providers in India using the IFC risk framework. This was supplementedby the use of our Rapid Institutional Assessment and Risk Management for Microfinance toolkits. Based on the assessments, a risk management implementation plan was delivered to the MFI. The plan indicated priority levels of each activity, corresponding timelines, monitoring parameters and commitment from MFI on resource allocation. To institutionalise risk management practices, we supported the MFI in implementation of risk management policies and risk governance structure. Eventually, based on the risks identified the team designed appropriated risk monitoring tools such as operational, credit and financial risk tools.