Risk is an inherent element of financial services, and like all financial institutions, microfinance providers (MFPs) face risks that they must manage effectively to achieve their financial and social objectives. It is imperative for microfinance providers to have a formal risk management structure in place to proactively establish processes that support business objectives while mitigating risks to an acceptable level.

This study aims to update the risks highlighted in the initial publication in the face of the changing business and
macroeconomic environment, as well as, new initiatives and developments in the microfinance sector.

Pakistan Microfinance Network (PMN) launched a research study to assess the impact of COVID-19 on MSEs in order to understand how the coronavirus pandemic has impacted their household incomes, business operations, and how they are coping with the shock and what kind of support is required for their rehabilitation.