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Country Risk Management
               An OECD approach


              Stephane Jacobzone,
                   Counsellor,
OECD Public Governance and Territorial Development
Strengthening country risk management

 Over a decade of experience
 The High Level Risk Forum (2011)
    - a governance framework
    - public private partnerships
 A common platform to:
 • Help government prepare for major risks
 • Address policies over the full risk management cycle
 Coordination with other OECD fora and networks

                                                   2
The High Level Risk Forum
• Promotes integrated risk management
• Addresses the interconnectedness of risks
• Modular approach
  e.g. in 2012:
  – Cross country analysis of risk assessment
  – Interagency crisis management
  – Risk and crisis communication
  – Country peer reviews of risk management policy
 Identify successful risk management practices
  and facilitate diffusion and peer learning

                                                     3
Framework for Disaster Risk Management
  A focus on Risk Assessment and Financing
  Helping countries to strengthen resilience and
   optimise their financial system
 Assessing Risks
   - Importance of governance, transparency,
    accountability, and multi stakeholder involvement
   - Risk analysis, and vulnerability: exposed
    population and assets, socio economic factors
   - Monitoring risks and portfolio of risks over time
   - Role for internal and external communication
   - Use to strengthen preparedness: priority setting,
     risks to be prevented, reduced or transferred
                                                       4
     through financial instruments
National risk assessment:
                     examples from country practices
  Country     National Risk    How many times       Lead Department            Time horizon of               All hazards?
               Assessment        completed?                                    events included

*Australia        Yes                 ---                   ---                          ---       Natural, biological, technological,
                                                                                                             industrial and
                                                                                                       other human phenomena
Canada            Yes                Once          Public Safety Canada      5 years              All: natural, technological accidents,
                                                                                                            manmade, health
France           Under                ---             Prime Ministry         5 years                All: Natural hazards, manmade,
                                                                                                          industrial accidents
              development
                    .
*Germany          Yes                 ---                                                          All: Natural, manmade, industrial


Hungary           Yes           More than twice   Ministry of the Interior   3 years             Natural, industrial accidents, migration


*Mexico         Partially             ---         Ministry of the Interior                        Natural hazards, industrial accidents


Netherlands       Yes           More than twice   Ministry of Security and   5 years               All: Natural, manmade, industrial
                                                          Justice                                accidents, and other potential risks to
                                                                                                            national security


*New              Yes                 ---           Prime Minister and                   ---               Natural, manmade
                                                         Cabinet
Zealand
Norway            Yes                Once           Ministry of Justice      6+ years              All: Natural, manmade, industrial
                                                    (CEP coordinator)                                accidents, ICT, infrastructure


Switzerland       Yes                Once         Department of Defence      1 year                All: Natural, manmade, industrial


Sweden        No, in 2013             ---           Ministry of Defence      5+ years              All: Natural, manmade, industrial


*United           Yes         More than twice         Cabinet Office         5 years               All: Natural, manmade, industrial
Kingdom
                                                                                                                                            5
USA               Yes                Once            Department of           3-5 years             All: Natural, manmade, industrial
                                                    Homeland Security
National risk assessment: key features

Overall summary of risks portfolio: impact
 and likelihood
Existence of mechanisms to allow for whole
 of government approach: Canada, France,
 Hungary, Netherlands, Sweden, UK, US
Public access to results: Hungary, Mexico,
 Netherlands, Norway, Sweden, Turkey, UK



                                             6

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Stephane Jacobzone - Country Risk Management, An OECD Approach

  • 1. Country Risk Management An OECD approach Stephane Jacobzone, Counsellor, OECD Public Governance and Territorial Development
  • 2. Strengthening country risk management Over a decade of experience The High Level Risk Forum (2011) - a governance framework - public private partnerships A common platform to: • Help government prepare for major risks • Address policies over the full risk management cycle Coordination with other OECD fora and networks 2
  • 3. The High Level Risk Forum • Promotes integrated risk management • Addresses the interconnectedness of risks • Modular approach e.g. in 2012: – Cross country analysis of risk assessment – Interagency crisis management – Risk and crisis communication – Country peer reviews of risk management policy  Identify successful risk management practices and facilitate diffusion and peer learning 3
  • 4. Framework for Disaster Risk Management  A focus on Risk Assessment and Financing  Helping countries to strengthen resilience and optimise their financial system Assessing Risks - Importance of governance, transparency, accountability, and multi stakeholder involvement - Risk analysis, and vulnerability: exposed population and assets, socio economic factors - Monitoring risks and portfolio of risks over time - Role for internal and external communication - Use to strengthen preparedness: priority setting, risks to be prevented, reduced or transferred 4 through financial instruments
  • 5. National risk assessment: examples from country practices Country National Risk How many times Lead Department Time horizon of All hazards? Assessment completed? events included *Australia Yes --- --- --- Natural, biological, technological, industrial and other human phenomena Canada Yes Once Public Safety Canada 5 years All: natural, technological accidents, manmade, health France Under --- Prime Ministry 5 years All: Natural hazards, manmade, industrial accidents development . *Germany Yes --- All: Natural, manmade, industrial Hungary Yes More than twice Ministry of the Interior 3 years Natural, industrial accidents, migration *Mexico Partially --- Ministry of the Interior Natural hazards, industrial accidents Netherlands Yes More than twice Ministry of Security and 5 years All: Natural, manmade, industrial Justice accidents, and other potential risks to national security *New Yes --- Prime Minister and --- Natural, manmade Cabinet Zealand Norway Yes Once Ministry of Justice 6+ years All: Natural, manmade, industrial (CEP coordinator) accidents, ICT, infrastructure Switzerland Yes Once Department of Defence 1 year All: Natural, manmade, industrial Sweden No, in 2013 --- Ministry of Defence 5+ years All: Natural, manmade, industrial *United Yes More than twice Cabinet Office 5 years All: Natural, manmade, industrial Kingdom 5 USA Yes Once Department of 3-5 years All: Natural, manmade, industrial Homeland Security
  • 6. National risk assessment: key features Overall summary of risks portfolio: impact and likelihood Existence of mechanisms to allow for whole of government approach: Canada, France, Hungary, Netherlands, Sweden, UK, US Public access to results: Hungary, Mexico, Netherlands, Norway, Sweden, Turkey, UK 6