Jeremias Clemente Malôa
This paper discusses how microfinance banks appraise risks in lending to very small businesses. It argues that when one operates in small business markets, the knowledge of the market is even more useful than technical skills required to appraise risks. An intuitive assessment may deliver better results than a simple quantitative method, and as such, a good team of loan officers, managers and auditors is necessary to create wealth portfolios. The process of risk management that starts from the first contact with the client through business and household evaluation has to be quick and to warn of significant threats. This paper examines risk assessment in the context of market and street vendors in Maputo city and province, Mozambique.