Mastering Risk Management in Microfinance
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Questions and Answers

Which type of risk in microfinance refers to the risk of default by borrowers?

  • Credit risk (correct)
  • Liquidity risk
  • Operational risk
  • Market risk

    • What is the purpose of risk management in microfinance?

  • To manage changes in market conditions
  • To identify financial obligations
  • To provide small loans to individuals and businesses
  • To ensure the success of microfinance programs (correct)

    • What is operational risk in microfinance?

  • The risk of default by borrowers
  • The risk of losses due to inadequate or failed internal processes, people, and systems (correct)
  • The risk of not being able to meet financial obligations
  • The risk of losses due to changes in market conditions

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