Given the fact that cash is a highly desired commodity and a liquid asset, it is important to conduct a risk analysis for every CBI programme. IOM will assess the risk of fraud, misappropriation and embezzlement. When identifying and analysing risks that might affect beneficiaries and target communities, a protection lens should be applied and mainstreamed throughout the project cycle. The following chart illustrates how risks overlap with each other: contextual and institutional risks will impact the programme and vice-versa.
Protection: Together with protection staff, a Protection Risk Assessment (including GBV and SEA) should be conducted as part of risk analysis.
Figure 7: Risk Analysis
Adapted from the e-learning module “Core CVA skills for Supply chain, Finance and ICT staff”, developed by the Fritz Institute and the CALP Network, in collaboration with the International Rescue Committee.
Once identified, IOM will establish robust CBI tailored financial and operations controls that adequately address the risks identified. There are four main ways to deal with risk:
- Accept: Accepting a risk means you do not think the impact will be of too great a consequence, or that it is unlikely to happen.
- Control: Controlling a risk may include implementing safety procedures, for example, two or more people need to sign a form to release money.
- Avoid: Avoiding a risk could be using currency distribution rather than bank accounts if you fear corruption in the banks.
- Transfer: Transferring a risk is about getting someone else to take the risk, for example asking a security company to safeguard the money or hiring another party to deliver the cash.