This note is based on MicroSave’s experience in developing risk management policies within its Action Research Partners (ARPs). It underlines a number of aspects that institutions seeking to adopt effective, proactive and integrated risk management must address—oversight shifts, formalising policies of risk management, enhancing scope of risks, proactive anticipation, monitoring and prevention of risks. Strategy, structures, processes and infrastructure are the essential components of risk management process of an MFI, mentions the note. It also suggests integrating process mapping and risk analysis and highlights the role of internal audit in management of risks.