Risk Management Task Force

At its 35th session in April 2018, HLCM agreed on the need for a joint, cross-functional engagement towards system-wide harmonization of risk management practices, including information sharing on fraudulent behaviors of implementing partners; assessments of risk appetite and risk tolerance; incorporating acceptance of residual risk in organizational policies; implementing smarter upstream controls; examining the costs of controls as compared to the value of the potential loss they are intended to mitigate; and, development of common definitions of risk categories to enable a common approach to reporting risks. As part of this work, the Committee requested the Finance and Budget Network to take the lead in developing a common approach to reporting fraud and presumptive fraud, as well as to review how risk analysis might be incorporated into the budgeting processes of UN system organizations.