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Statement on Risk Management
IWMI’s Board of Governors has responsibility for ensuring an
appropriate risk management process is in place to identify and manage
high and significant risks to the achievement of the Institute’s
business objectives, and to ensure alignment with CGIAR principles
and guidelines which have been adopted by all CGIAR Centers.
These
risks include operational, financial and reputational risks that
are inherent in the nature, modus operandi and location of the
Institute’s
activities, and are as dynamic as the environment in which the
Institute operates changes. They represent the potential for loss
resulting from inadequate or failed internal processes or systems,
human factors, or external events. They include low impact (and
therefore irrelevance) of scientific activities; misallocation
of scientific efforts away from agreed priorities; loss of reputation
for scientific excellence and integrity; business disruption and
information system failure; liquidity problems; transaction processing
failures; loss of assets including information assets; failures
to recruit, retain and effectively utilize qualified and experienced
staff; failures in staff health and safety systems; and failures
in the execution of legal, fiduciary and agency responsibilities.
The Board has adopted a risk management
policy, communicated to all staff, that includes a framework by
which the Institute’s management identifies, evaluates and
prioritizes risks and opportunities across the organization; develops
risk mitigation strategies which balance benefits with costs; monitors
the implementation of these strategies; and periodically reports
to the Board on results. This process will draw upon risk assessments
and analysis prepared by the Institute’s staff, internal
auditors, Institute-commissioned external reviewers, and the external
auditors. The risk assessments will also incorporate the results
of collaborative risk assessments with other CGIAR Centers, System
Office components and other entities in relation to shared risks
arising from jointly managed activities. The risk management framework
seeks to draw upon best practice promoted in codes and standards
promulgated in a number of CGIAR member countries, and it is subject
to ongoing review as part of the Institute’s continuous improvement
effort.
Risk mitigation strategies include the
implementation of systems of internal control which, by their nature,
are designed to manage rather than eliminate the risk. The Institute
endeavors to manage risk by ensuring that the appropriate infrastructure,
controls, systems and people are in place throughout the organization.
Key practices employed in managing risks and opportunities include
business environmental scans, clear policies and accountabilities,
transaction approval frameworks, financial and management reporting
and the monitoring of metrics which are designed to highlight positive
or negative performance of individuals and business processes,
across a broad range of key performance areas.
The design and effectiveness of the
risk management system and internal controls is subject to ongoing
review by IWMI’s
internal audit service, which is independent of business units
and reports on the results of its audits directly to the Director
General and the Board through the Board’s Audit Committee.
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Statement on Risk Management
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