The document summarizes a meeting held by Save the Children, USA Bangladesh Country Office to discuss program risk management. It defines key terms like internal control, internal audit, compliance, investigation, monitoring and evaluation, and risk management. It also identifies common risk factors in various areas of program management like organizational impacts, budget and grants, project linkages, and human resources. Qualitative methods for risk analysis involving likelihood and impact scores are presented.

1. SAVE THE CHILDREN, USA Bangladesh Country Office open session on PROGRAM RISK MANAGEMENT April 19, 2010 ASSURANCE AND RISK MANAGEMENT DEPARTMENT (ARM – DEPT.)

11. “ The uncertainty of an event occurring that could have an impact on the achievement of objectives.” Definition - Risks

17. Risk assessment is the process of:  Enumerating risks  Determining their classifications  Assigning probability and impact scores  Associating controls with each risk risk assessment A systematic process for assessing and integrating professional judgments about probable adverse conditions and / or events.

18. program risk criteria Category Criteria Organizational New Sub-Recipient Inexperienced Sub- Recipient Staffing Changes Change in Legal Applicant / Focal Person Programmatic Low Quality Programmatic Performance Inadequate Performance Measures Multi-Site Program Participant Enrollment / Retention Innovative / Untested Program / Project Design Major Changes in Project Design / Scope Financial Large Recipient / Multiple Awards Large Unexpended Balances Financial Weakness Identified Compliance Incomplete / Late Progress Reports Incomplete / Late Financial Status Reports Non-Responsive Recipient Open Audit Findings Program Specific One or More Partners or Subcontractors

23. probability and consequences Probability  Likelihood of the event Consequences  Impact on Finance, Reputation, Time

26. risk impact Score Definition 5 – Extreme /catastrophic Loss of operations for more than 7 days; loss of life/fatalities; Major financial loss that threatens the partnerships existence; non delivery of partnership objectives; loss of trust or reputation of Save the Children and extended local media coverage, extremely damage to local environment 4 - Major Loss of operations for more than 48 hours but less than 7 days; Extensive injuries, possible loss of life; Severe financial loss that puts the partnership objectives at risk; Significant impact upon the partnership objectives; damage to reputation and extended local media coverage; major damage to local environment. 3 - Moderate Disruption to operations for limited time; short term illness, injury or serious threat to injury; significant financial loss; partial failure to achieve partnerships objectives; damage to reputation; moderate damage to local environment. 2 - Minor Some disruption to operations; minor injuries; some financial loss; little effect on delivering partnership objectives; possible damage to reputation; minor damage to local environment. 1 - Insignificant Little disruption to operations; no injuries; small financial loss; no effect on delivering partnership objectives; no damage to reputation; no or insignificant environmental damage

27. risk scoring matrix

28. what actions should we take for risks in partnership? Risk Category Risk Score Actions HIGH RISK 12 - 25 Immediate action required by the partnership. Risk is reported through to Country Director or similar for senior management involvement where necessary. MEDIUM RISK 6 - 10 Partnership to ensure effective monitoring arrangements are in place and effective response procedures have been implemented. Close monitoring and review of the risks are required. LOW RISK 1 - 5 Partnership to ensure risks are managed by routine procedures - regular monitoring is carried out of current risk status.

31. QUESTIONS? [email_address]