A Dissertation Submitted in Partial Fulfillment of the Requirement for the Degree of Masters of Business Administration in Corporate Management (MBA- CM) of Mzumbe University.The purpose of conducting this study was to assess the compliance of microfinance institutions (MFIs) to risk management regulations in Tanzania. Specifically the study assessed the extent to which guidelines and regulations on mitigating credit risks are adhered to by MFIs in Tanzania, secondly assess the extent to which guidelines and regulations on mitigating operational risks are adhered to by MFIs in Tanzania and lastly the study assessed the extent to which guidelines and regulations on mitigating strategic risks are adhered to by MFIs in Tanzania. The study used case study design because it is an effective method for collecting a lot of information’s within a short period of time. The population of this study was 72 respondents which comprised of the employees, owners and MDs from selected MFIs. A sample of 72 respondents was selected using simple random sampling and purposive sampling. The study used questionnaires and interview guide questions as the main tools for data collections. The study findings showed that most of the MFIs in Tanzania have adequate police and procedures to manage operational, credit and strategic risk. The study findings showed that MFIs have written policies and procedures which guide or manage operational risk, internal audit management, and financial management of the selected financial institutions. The evidence further showed that most of the MFIs had internal audit department which control and monitor MFIs moneys, detecting fraud, as well as smooth operation of the internal audit department. Finally the study findings showed that MFIs internal audit and external audit department were found to have great contributions on effective use of resources, effective financial reporting and standards, check and balance of the operational of the MFIs. The regression results showed that there is positive relationship between operational risk, credit risk and strategic risk among MFIs. The study concluded that MFIs should continue adhering with the available policy, procedures, and laws so as to mitigate financial, operational, credit risk and strategic risk. Adherence to operational manual and procedures should be emphasized. Internal audit and external audit for effective control, use and management of MFIs should be emphasised too.