Thesis (M.M. (Finance & Investment))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Graduate School of Business Administration, 2013. / This research work explores the risks that microfinance institutions (MFIs) face in their operations and the risk
management strategies they adopt to mitigate their risks. Microfinance institutions serve some of the world’s
most financially challenged population who otherwise would not have access to banking services. Risk
management within the context of microfinance banking has gained importance within the last decade due
partly to the fact that most MFIs are adopting business/profitability principles in their operations. Also, due to
the recent financial crisis, MFI cannot afford to be indifferent to risk management practices in the battle for
survival, financial sustainability and self-sufficiency. The data for this study is from both secondary and
primary sources; 48 MFIs in Ghana responded to a questionnaire made up of 25 questions. Analysis of the
responses obtained was done using Chi-Square test of equal proportions, P-values and other descriptive
statistics. The Analysis found that the microfinance institutions surveyed are aware of the types of risk inherent
in their line of business and do in varying ways employ some form of risk management strategies to mitigate
losses and enhance profitability. Since credit granting stands at the core of the operations of MFIs, the
management of risk as a result of the credits extended is crucial for their survival and profitability.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/12961 |
| Date | 02 August 2013 |
| Creators | Mawuko-Yevugah, Yvonne |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | application/pdf |
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