Risks assessment in Moroccan microfinance sector: An interval-valued intuitionistic fuzzy set approach

Managing risks is very significant for microfinance institutions (MFIs) to guarantee their financial soundness, to achieve their social objectives and then to encourage donors and investors to participate in microfinance industry financing. Risks impacts on MFIs differ considerably which make their prioritizing a highly important task to figure out the candidate risks to be mitigated or tolerated. This article provides a clear picture of the most serious risks affecting the microfinance sector in Morocco. We used an approach that combines the interval-valued intuitionistic fuzzy sets (IVIFSs) and the technique for order of preference by similarity to ideal solution (TOPSIS) method to deal with the lack of sufficient statistical data and the subjectivity of the experts’ judgement in risk rating. A sensitivity analysis was also conducted to show the impact of criteria weights on the decision process and to examine the robustness of the model results.