Risk management training and preparation of risk management policies, WISDOM, Ethiopia

• Aug 4, 2025
• 1 min

Wisdom Microfinance Institution (SC) is a World Vision-affiliated microfinance institution established in 1998. It provides financial services to micro-entrepreneurs and smallholding farmers in Ethiopia. MSC was contracted to develop risk management systems for Wisdom.

The MSC team developed a risk management matrix for the organization. Further, specific risk owners were identified for each department concerned with the risks identified for that department. For every risk, we defined monitoring indicators, reports, and threshold levels of those indicators to monitor changes in the risk profile of Wisdom regularly. The MSC team also prepared a risk-management manual and submitted it to the Central Bank of Ethiopia as its policy document on risk management.

As a result of our work, Wisdom subsequently decided to integrate the risk management policies in its policy documents as a part of the overall management function.

Wisdom Microfinance Institution commissioned the project.