KAMPALA PRINCIPLE 5:MSMEs_SUBP 5.D

Sub-principle 5.D

Establish provisions to mitigate and manage risks

 

Why is it important?

 

Companies are responsible for conducting due diligence regardless of their size. What is relevant to size is the methodology used to conduct the due diligence, as different processes require different levels of resources. A risk management process involves the systematic application of policies, procedures and practices. When taking decisions to manage risk, it is important to remember that it is not an absolute science. Risk is usually considered in terms of both threats and opportunities.

Self-reflection questions
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  • In the development co-operation projects in which you are involved, has a risk management process to monitor and manage risk been set up? Do you know what your role and responsibilities are in this process?
  • Have you discussed with development partners and other actors how they could mitigate and minimise risks for project stakeholders and vulnerable people and communities?

Actions to consider
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  • Participate in and encourage regular risk assessments and engage actively, assessing your own business’ status and engagement.
  • Anticipate, manage and mitigate conflicts of interest.
     

Actions to consider
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DON’T…

  • Stop communicating openly with partners, staff and stakeholders about how to handle conflicts of interest. 

COUNTRY-LEVEL EXAMPLES

Help us build our knowledge base! If you have any good examples, please share them with the GPEDC Joint Support Team via info@effectivecooperation.org 

Resources

Help us build our knowledge base! If you have any good examples, please share them with the GPEDC Joint Support Team via info@effectivecooperation.org

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