Workshop Presentation - Save the Children, USA, Bangladesh Country Office

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]