Risk Diagnostic

The experience of rapid growth in the microfinance sector has alerted us to the need for robust risk management.  Sustainability requires that an institution proactively pre-empts, identifies and manages risk.

A Risk Diagnostic assesses an institution’s risk management policies, systems and practices. It provides critical information for the Board and the Senior Management by identifying any gaps in core risk areas. The assessment is customised for the size and nature of the institution and the report provides specific recommendations for improvement.

In line with IFC’s Risk Management framework, with a focus on microfinance, the Risk Diagnostic covers:

  • Governance and regulatory risk
  • ICAAP (Internal Capital Adequacy Assessment Process)
  • Credit Risk
  • Liquidity Risk
  • Interest Rate Risk
  • Market Risk and
  • Operations Risk

The approach includes:  desk-based review of relevant policies, manuals and reports, indepth discussion with CEO and senior management, and visit to selected branches to assess operational risks and possibility of risk.  The report highlights the gaps in  risk management practices in various areas  and provides appropriate recommendations to address them. Risk practices  are categorised on a scale ranging from ‘Formative’ to ‘State of the Art’.

Read more about our Risk Management services:  M-CRIL RM brochure 

Contact our Senior Vice President Gunjan Grover, gunjangrover@m-cril.com for more information.