Leveraging Risk Management for Future Growth: A Business Case of UNTU Microfinance in Zimbabwe
Financial institutions are continuously looking for investments that will sustainably drive growth. Developing risk management capacity often takes significant human and financial investment, but through this investment an institution can begin setting itself apart from its competitors and positioning itself to create long-term value for its stakeholders. This paper presents the case study of UNTU Microfinance in Zimbabwe and how it improved its risk management through adopting the Risk Management Initiative in Microfinance's (RIM's) Risk Management Graduation Model.
Implementing the risk management framework involved working with the Senior Management Team and Board to develop policies and procedures which would allow for appropriate risk management, providing UNTU four fundamental benefits:
- Going through a process with all stakeholders that yields a shared conceptual understanding of the risk management process using a comprehensive framework;
- Identifying the key risk management gaps using world-class benchmarks that also takes into account future issues arising from institutional growth;
- Developing an action plan which will result in the more effective management of key risks and greater ability to meet institutional objectives;
- Having the ability to measure progress using a robust framework which can communicate specifically how the institution has attained company-wide goals.