MICROCAPITAL BRIEF: Risk Management in Microfinance (RIM) Merging with Professional Risk Managers’ International Association (PRMIA) to Expand Training Opportunities, Certifications for Microfinance Institutions (MFIs)

Risk Management in Microfinance (RIM), a Luxembourg-based nonprofit organization that offers guidelines, consulting and training for microfinance professionals on risk, and the Professional Risk Managers’ International Association (PRMIA), a US-based nonprofit network of risk management service providers to financial and professional services firms, have agreed to merge. The move is intended to enable the entities to attract more members, offer more trainings on institutional self-assessment and develop a certification program for the microfinance industry. RIM Steering Committee Chair Massimo Vita said, “joining forces with PRMIA provides RIM with the operational platform and expertise to fully scale our global outreach while providing shared connection and learning opportunities between risk management professionals in the banking and microfinance communities.”

Established in 2016, RIM’s goal is “promoting and supporting the implementation of stronger, more appropriate risk management in the microfinance sector.” The NGO offers trainings for microfinance institutions (MFIs), a list of RIM-trained risk management consultants and a “graduation model” for helping MFIs bolster their internal risk management systems. The graduation model encompasses strategies to address risk related to investment portfolios, credit transactions, operations, governance, strategy, liquidity, foreign exchange and interest rates.

Established in 2002, PRMIA’s goal is to “provide an open forum for the development and promotion of the risk profession.” The network is represented by 46 chapters around the world and disseminates risk management information through online publications, technical assistance, webinars and in-person events. PRMIA also offers the following certifications: Professional Risk Manager (PRM) Designation, the Associate PRM Certificate and the Operational Risk Manager Certificate. For the 12 months ending June 2016, PRMIA reported an annual revenue of USD 2.2 million.

By Nicholas Galimberti, Research Associate

Sources and Additional Resources

PRMIA press release
https://prmia.informz.net/informzdataservice/onlineversion/ind/bWFpbGluZ2luc3RhbmNlaWQ9MjM3NTY4MiZzdWJzY3JpYmVyaWQ9Mzc4NzMwMjM1

PRMIA website
https://www.prmia.org

Guidestar: PRMIA financials
https://www.guidestar.org/ViewPdf.aspx?PdfSource=0&ein=61-1405040

RIM background
http://www.riminitiative.org/about-us/

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.