Risk Management Initiative in Microfinance (RIM)
May 31, 2013 (Washington, DC) - MFX Solutions has announced the launch of the Risk management Initiative in Microfinance (RIM). As a co-founder, MFX is excited to promote the issue of risk management in microfinance through a program jointly developed with founding members Appui au Développement Autonome (ADA), Calmeadow, Center for Financial Inclusion at Accion (CFI), Mennonite Economic Development Associates (MEDA), Microfinanzas Srl, Oikocredit, and Triple Jump B.V. The goal of RIM is to elevate the awareness, best practices, and appropriate standards for risk management in microfinance globally.
“As a leading advocate on currency risk and asset/liability management in microfinance, MFX is excited to see industry players coming together in a concerted effort to create accepted risk management standards and actively promoting industry collaboration and partnership,” says Kevin Fryatt, MFX’s Director of Technical Assistance.
RIM seeks to contribute to a socially-focused microfinance sector, where microfinance clients are protected from internal and external risks inherent to the delivery of inclusive financial services, including liquidity risk, currency risk, interest rate risk, regulatory risk and credit risk). Currently, many microfinance institutions (MFIs) lack a comprehensive risk approach. Such institutions often struggle to adapt their systems, structures, and policies to their local business environments, adequately protect customers, and bring their operation to scale.
RIM aims to mitigate these challenges by helping MFIs build robust risk management strategies through an array of activities: developing advocacy and visibility efforts; creating industry-wide standards; encouraging information and idea sharing between technical experts; and developing the capacity of risk management consultants in the field. RIM will develop a graduation model for risk management practices in microfinance institutions as well as create an industry mapping of risk and promote partnerships between risk management service providers.
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About MFX Solutions: MFX Solutions is a socially-oriented company that supports lending to entrepreneurs in low-income countries with affordable hedging products and risk management education. MFX believes that when currency and market risks are managed effectively, development lending can reach more entrepreneurs at the bottom of the pyramid, more sustainably, at a lower cost. Better access to foreign exchange hedging tools and financial education can therefore have a profound effect on global poverty.
For more information, visit www.mfxsolutions.com or contact Kevin Fryatt at kevin@mfxsolutions.com.
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