KAMPALA PRINCIPLE: TUs_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 tailored to size is how to conduct the due diligence, as this requires resources. Taking decisions for managing risks is about managing uncertainty to achieve objectives that may include social, environmental and economic objectives. Risk is also circumstance-specific and has to be dynamic, iterative and responsive to change. Risk is usually considered in terms of both threats and opportunities. Trade unions need to hold PSE programmes and partnerships to account so that they operate in line with the tenets of presumed full disclosure and transparency, principles of accountability, provision for public oversight, a public consultation mechanism, and a publicly communicated complaints mechanism, including public reports on the outcome of complaints and in line with the due diligence principles and guidelines.

Self-reflection questions
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  • Have you checked that the risk management process acknowledges the specific risks to beneficiary groups and sectors that emerge from the project’s sector of intervention and those that emerge from the specific country context? 
  • If a PSE project or investment is causing environmental, social or governance harm, are there mechanisms in place to correct course (such as through renegotiating a contract to rebalance and manage risk or readjusting a project’s aims, partners or activities)?

Actions to consider
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  • Participate in regular risk assessments.
  • Ensure governments regularly update and monitor risk assessment frameworks. 
  • If involved in project implementation, anticipate, manage and mitigate conflicts of interest.

Pitfalls to avoid
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DON’T…

  • Refrain from making contributions and having a key role in monitoring risk both at the strategic, policy and local level.
  • Stay silent if no established guidelines on acceptable levels of risk are published. 
  • Limit communication with partners, staff and members about the partnership’s approach to 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

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