VI.B: Enterprise Risk Management

Manage environmental, financial, operational, programmatic, organizational, political, regulatory and strategic risks

Other Information:

121. UNDP is exposed to a broad range of environmental, financial, operational, programmatic, organizational, political, regulatory and strategic risks. Risk management is an essential element of good corporate governance. Enterprise risk management (ERM) is an important approach to proactively and systematically identify and manage risks and thus better achieve objectives while protecting stakeholder interests. Both internal and external audits of UNDP have continuously emphasized the risk management focus that is required in the organization. In line with this, UNDP has developed a corporate ERM framework consolidating its existing risk-management procedures and tools. It includes processes to implement ERM across UNDP planning, operational and management practices and processes, and integrates all elements of UNDP ERM activities into one system that facilitates strategic planning and decision making. 122. Some of the main ERM activities and performance targets for 2008-2011 include: (a) Policy, guidelines, online portal (tracking of selected risk areas); tools and instruments developed and rolled out by 2008; (b) Mainstreamed in unit-level work planning (including corporate roles where applicable) starting in 2008; (c) Corporate training programmes by 2008. 123. A high-priority area of risk management concerns security. The increase of global threats and related risks to United Nations operations, and UNDP expanding involvement in post-conflict situations including early recovery, and the difficult operating environments for many programmes, requires greater vigilance and appropriate investment in measures designed to allow UNDP staff to accomplish their vital mission without becoming victims themselves. Security risk management includes raising awareness of security issues, ensuring that programme delivery can take place safely, maintaining internal capacity to respond effectively and immediately to security emergencies and leveraging UNDP resources and assets through structured cooperation with the United Nations Department of Safety and Security and partnership with other organizations. 124. Security performance targets for the planning period are based on: (a) Progressive efforts to achieve greater compliance with United Nations minimum operating security standards compliance criteria in all UNDP operations, based on solid threat and risk assessments; and (b) Security risk management mainstreamed into UNDP programming at all levels by 2009, coupled with an effective and timely security response mechanism for emergencies.

Indicator(s):

Indicator:1

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