Recognising the need for proactive risk management the present note throws light on risk management in MFIs. It is based upon a study undertaken by MicroSave and ShoreBank on the current status of risk management in four of MicroSave’s Action Research Partner (ARP) organisations. The note describes the risk identification process, management and measurement of risks. It addresses issues like – managing risks and the process of institutionalising risk management, monitoring of risk management programme. The note suggests that the Microsave’s “Toolkit for Institutional and Product Development Risk Analysis” if rigorously applied, will help in the early detection and management of risks, especially in the development of new products.

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