Risk Management Guidelines for Microfinance Institutions

The National Bank of Ethiopia has issued risk management guidelines for microfinance institutions, outlining a framework for identifying, measuring, monitoring, and controlling various types of risk, including credit, liquidity, interest rate, and operational risk. The guidelines emphasize the importance of a comprehensive risk management system, including active board and senior management oversight, adequate policies and procedures, risk measurement and monitoring, and internal controls, to ensure the long-term sustainability of microfinance institutions.