Is microlending risky?

Is microlending a risky investment? On one hand, it offers the potential for high returns as it targets individuals and small businesses who may not have access to traditional banking services. However, does this also mean that microlending is inherently risky due to the potential for default or fraud? How does one assess the risk associated with microlending and determine if it's a viable investment option? What steps can investors take to mitigate these risks and ensure their investments are protected?