Technology-Based Risk Management Framework

Mimo Finance has developed a technology-based risk management framework design to help MFIs to better assess business risks in a timely manner

This is part of the Unitus Labs’ India Microfinance Innovations initiative

Mimo spent 6 months with risk management experts diagnosing and conducting a risk health check across their organization, with a goal of building strong systems-driven risk management culture. The project showed that MFIs need to have better control over their data, and that further analytics is needed to identify customer specific risks. Moreover, dedicated staff are required for risk management positions without department overlaps and processes need to be created to capture ad hoc information at the field level. A major challenge faced during this project was communicating the benefits of such an exercise across the organization, since discussions were often construed as intrusive in nature.

The Data Warehousing Institute Maturity Model used in this exercise can help other small and medium microfinance organizations to benchmark themselves against industry standards, and bridge specific risks pertinent to their organization.

NOTE: This is published in the spirit of open source. You may use and modify this content with the condition that you provide credit and intellectual property rights acknowledgement to Mimo Finance, and provide a link back to this page.

Download Enabling a Formal Risk Management at Microfinance Institutions (PDF – 200KB)

Download Risk Health Check (PDF – 2MB)

Download Business Intelligence and CRM Health Check (PDF 1MB)

Download Cash Risk Management Tool Screenshots (PDF 2MB)

Watch Cash Risk Management Tool Overview Slideshow

About Mimo Finance

Mimoza Enterprises Finance Pvt. Ltd. offers its micro finance products under the Mimo Finance brand and has operations in Uttarakhand, Uttar Pradesh, Haryana, Rajasthan, Himachal Pradesh and Madhya Pradesh. As of 31st March 2011, Mimo Finance has 89,372 active loan clients across 43 branch locations and has disbursed 192,146 loans since 2007.