RISK MANAGEMENT FRAMEWORK

Presentation by Jozef Hupperetz

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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

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Risk Management Framework

STRATEGY

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Risk Management Framework • S

takeholders

• T

asks

• O

bjectives

• P

rocess

FIRST element ENVIRONMENT 5

Risk Management Framework FIRST element ENVIRONMENT RESULT:

Description of the relationship between the organisation and its environment

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Risk Management Framework

1.

ENVIRONMEN T STRATEGY

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Risk Management Framework SECOND element RISKS ANALYSIS • • 1 IDENTIFY RISKS

How to handle the bulk of information Establish a list of risk sectors

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Risk Management Framework SECOND element RISKS ANALYSIS • 2 ANALYSE RISKS

Establish the of risks

Likelihood

and

Consequence 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 INFORMATION ON CONSIGNMENTS

RISK INDICATORS CUSTOMS PROCESSES OPERATORS

HIGH risk MEDIUM risk LOW risk

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Risk Management Framework

1.

ENVIRONMEN T STRATEGY 2.

RISK ANALYSIS

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Risk Management Framework THIRD element TREATMENT • STRATEGICAL DECISIONS –

Change of legislation

• OPERATIONAL DECISIONS –

Targeted Controls

– – –

Random Controls Audit Use of resources

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Risk Management Framework

1.

ENVIRONMEN T STRATEGY 2.

RISK ANALYSIS 3.

TREATMENT

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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

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Risk Management Framework

1.

ENVIRONMEN T 4.

MONITORING STRATEGY 2.

RISK ANALYSIS 3.

TREATMENT

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