This Handbook on Sustainability and Risk Management is intended to help microfinance institutions by suggesting a practical approach for improving their performance. Eleven practical Tools form the core of this handbook. Each Tool is clarified and summarised in separate paragraphs. There are five Tools for different aspects of Sustainability Management, and six Tools for Risk Management. The tools have been developed to strengthen risk management and sustainability management at a range of microfinance institutions. The approach draws upon mainstream banking guidelines (such as Basel II) and the Global Reporting Initiative (GRI), but is adapted to meet the needs of smaller institutions.