Micro Finance Institutions between Innovation and Risk management

Abstract

According to Borgelt (2007), “Risk taking is essential for leading innovation and change effectively, yet risk taking is increasingly difficult in a risk management environment. »

Given the presence of risks in all economic and financial activities, risk management is nowadays an imperative among the various players in the economic fabric. It can prove to be a crucial element that influences the success or failure of financial institutions in general, and microfinance institutions in particular.

This article is carried out with the aim of evaluating/identifying, through a review of conceptual literature, the notion of innovation and what it invites as risks and the means of managing and protecting them in an environment as special as that of Microfinance which is today recognized as an economic and social lever throughout the world.

We will see the chronological evolution of innovation, its different types, its common points and differences with microfinance as well as the risks it runs and how to manage them.

Keywords: Social Innovation, Managerial Innovation, Risk Management, Microfinance, Microfinance Institutions.

Classification JEL : G32, G21, O30, O35

Paper type: Theoretical Research