In this video, Martin Holtmann, Head of the Microfinance Unit in the IFC’s Global Financial Markets Department, discusses the kind of risks MFIs face. Elaborating on the risk factor, Martin says liquidity risk and interest rate risk is low for MFIs that are only into lending business. He further explains the risks that are important for MFIs, namely, credit risk, portfolio risk and operational risk. Martin further adds that MIS and banking software have become a necessity to deal with large amount of outstanding arrears, an area where MFIs are lagging behind.