Risks

Risk Analysis

Risk Analysis

For UNDP, risk is defined as the effect of uncertainty on organizational objectives, which could be either positive and/or negative. UNDP has a well-developed and robust risk management policy that is supported by an organisational wide enterprise risk management system and is undertaking a review of its approach to risk management.

Regional Projects

Inability to deliver on high-risk regional projects (i.e RSF, LGA Stabilization, PVE, the Borderlands) due to volatility of the target areas/regions.

Caused by: COVID-19 crisis strongly intertwined with the continuation of a security crisis characterized by violent extremism

Financial Sustainability

Reduced financial sustainability of Regional programmes and also of COs.

Caused by: The reductions in regular budgets due to uncertainty and changes in policy in key contributing countries.Further reduction on the approved IB for the Bureau in line with the new planning and budgeting models.

Funds

Limited resource mobilization opportunities and constraints/ Insufficient donor/government funds.

Caused by: Unprecedented humanitarian situation impacting on available development funding. While the continued engagement with the international community presents opportunities for UNDP to mobilize additional funding (as trusted partner), there are also risks as development partners prioritise other development issues outside the mandate of UNDP, and in some instances there are changes in donor/government priorities.

Corruption and fraud

Corruption and fraud – by responsible parties to the project.

Caused by: Poor compliance and monitoring of internal controls.

Complex structures

Complex structures at RSCA, the Hubs and HQ constrain effective oversight and coordination, efficient implementation and delivery of results, applied synergies and accountabilities

Caused by: Organisational mandates and function due to corporate obligations, which sometimes creates bureaucracy.

Political willingness

Lack of political will and/or participation of regional bodies in issues, and processes identified in RPD.

Caused by: Poor engagement of relevant stakeholders, lack of cooperation and support; Unpredictability resulting from contributing governments’ planning and budgeting cycles. Budget allocations politisized in the event of change of governments.

Ownership

Limited willingness and insufficient level of ownership by regional bodies and partners to support implementation of RP flagship and pilot projects.

Caused by: Changes in organisational mandates, failure to comply with contractual agreements.

Resources

Inadequate availability of resources to sustain the oversight and implementation activities due to changing priorities within the donor community.

Caused by: Unprecedented humanitarian situation impacting on available development funding. While the continued engagement with the international community presents opportunities for UNDP to mobilize additional funding (as trusted partner), there are also risks as development partners prioritise other development issues outside the mandate of UNDP, and in some instances there are changes in donor/government priorities.

Dormant Projects

Dormant and underperforming projects, with complex project documents, caused by lack of resources and limited capacity.

Caused by: Unprecedented humanitarian situation impacting on available development funding. While the continued engagement with the international community presents opportunities for UNDP to mobilize additional funding (as trusted partner), there are also risks as development partners prioritise other development issues outside the mandate of UNDP, and in some instances there are changes in donor/government priorities.