RISK MANAGEMENT FRAMEWORK Presentation by Jozef Hupperetz 1

RISK MANAGEMENT FRAMEWORK Presentation by Jozef Hupperetz 1

History • Abolition of 100% controls • Increased volume of traffic • Reduction of resources 2

History • EU Common approach – individual systems – structured lines of communication – cover all relevant risks – 15 customs administrations working as one 3

Risk Management Framework STRATEGY 4

Risk Management Framework FIRST element ENVIRONMENT • • S T O P takeholders asks bjectives rocess 5

Risk Management Framework FIRST element ENVIRONMENT RESULT: Description of the relationship between the organisation and its environment 6

Risk Management Framework 1. ENVIRONMENT STRATEGY 7

Risk Management Framework SECOND element RISKS ANALYSIS 1 • • IDENTIFY RISKS How to handle the bulk of information Establish a list of risk sectors 8

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Risk Management Framework SECOND element RISKS ANALYSIS 2 ANALYSE RISKS • Establish the Likelihood and Consequence of risks 10

Risk Management Framework SECOND element RISKS ANALYSIS 3 WEIGHTING OF RISKS • Compare data with pre-established criteria • Ranking: – High – Medium – Low 11

Risk Management Framework WEIGHTING of RISKS 12

Risk Management Framework 1. ENVIRONMEN T STRATEGY 2. RISK ANALYSIS 13

Risk Management Framework THIRD element TREATMENT • STRATEGICAL DECISIONS – Change of legislation • OPERATIONAL DECISIONS – – Targeted Controls Random Controls Audit Use of resources 14

Risk Management Framework 1. ENVIRONMEN T STRATEGY 2. RISK ANALYSIS 3. TREATMENT 15

Risk Management Framework FOURTH element MONITORING • Evaluation of the risk management mechanism – Performance, Effectiveness and Efficiency • Measurement of results 16

Risk Management Framework 1. ENVIRONMEN T 4. MONITORING STRATEGY 2. RISK ANALYSIS 3. TREATMENT 17

Risk Management Framework 1. ENVIRONMEN T 4. MONITORING STRATEGY 2. RISK ANALYSIS 3. TREATMENT 18