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Development risk management

Development risk management

Effective risk management practices are directly related to achieving results, and helps facilitate high performance. DFAT takes into account any risks that may hinder its ability to achieve its development program objectives, and implements measures to increase the likelihood of success. DFAT manages development risk throughout the lifespan of any investment.

DFAT also takes into account any risks that may impact on its ability to achieve its objectives with integrity. To ensure public funds are administered in alignment with Australian values and law, DFAT has a number of policies in place to manage specific areas of risk. These risk management policies cover environmental and social safeguards, terrorism resourcing and fraud, and are listed below. These areas of risk, and other common risk factors, must be taken into account for all investments, regardless of the value or mode of the investment. Risk factors screening must be completed for all investments.

Before entering into an agreement or arrangement, DFAT conducts a due diligence assessment on recipients of DFAT funding (funding recipients). This helps DFAT manage any risks in relation to the performance of the funding recipients. For more information, see the Due Diligence Framework.

Funding recipients are also required to apply adequate risk management practices throughout the lifespan of an investment. This includes applying the below-listed risk management policies. For more information about these specific risk management policies, please click on the respective links below. For more guidance on development risk management, see the Aid Programming Guide.

DFAT has standard clauses in agreements and arrangements that require funding recipients to report an incident in relation to the below-listed risk management policies. To report an incident, please find the relevant contact details below. Funding recipients must notify DFAT of incidents of fraud within five (5) working days. For all other notifications of incidents, funding recipients must notify DFAT within two (2) working days.

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