Perspectives on results, risk assessment and management in development co-operation
Denmark co-hosted a conference on Results, Risk Assessment and Management in Development Co-operation in November 2010, along with the OECD’s International Network on Conflict and Fragility (INCAF) and the Overseas Development Institute (ODI). Several dimensions of risk in development and humanitarian assistance were identified:
• Risk can be broken down into contextual risk, programmatic risk and institutional risk. Contextual risk deals with the evolution of the context, for example state failure. Programmatic risk deals with the failure to achieve programmatic goals and the possibility that programming causes harm. Institutional risks relate directly to the aid provider, for example fiduciary risks.
• Risk management is about finding a balance between risk and opportunity, for example the risk of doing nothing may outweigh the risk of providing aid. (Box 1)